Oracle may not be the flashiest name in the artificial intelligence race, but analysts at The Motley Fool argue the market is making a serious mistake by overlooking it.
According to The Motley Fool, the stock market is underestimating Oracle's growth potential, and the company could "easily become a $1 trillion company." The case rests largely on what Oracle already has in hand: a massive backlog of contracted business that it has yet to convert into recognized revenue.
Oracle's stock has underperformed the broader market over the past year — an irony given how much investor enthusiasm has flooded into AI-adjacent companies during the same period. But according to analysis cited by Yahoo Finance, that underperformance may actually signal opportunity rather than weakness. The argument is that once Oracle begins accelerating the conversion of its backlog into actual revenue, the gap between its current valuation and its true potential could close quickly.
The company has been positioning itself as a major player in cloud infrastructure, a segment that underpins much of the AI buildout happening across the technology industry. Demand for that kind of infrastructure has surged as businesses race to deploy AI applications at scale.
Why it matters: If the analysts are right, Oracle represents one of the larger mispricing stories in tech right now — a legacy giant quietly accumulating AI-era contracts while the market's attention stays fixed elsewhere.