Oracle: The Oracle of the AI Age

The AI Infrastructure/Cloud winner is going through a once in a generation inflection, bringing incredible growth and upside whilst raising many investor questions

Welcome to the 40th investment case, 33rd resilience, 22nd reshoring/sovereignty and 17th AI & data center idea on Crack the Market (and the most comprehensive Oracle investment case you will find online)! Join me as I dissect one of the biggest winners of this Age of AI thanks to its unique infrastructure and Stargate, how it is becoming the biggest hyperscaler of them all with the meteoric growth of its OCI business and discover all the investor debates around the company and its under appreciated potential in the next few years.

Before starting, I highly recommend checking my recent deep dive into this generational AI Investment Supercycle and how to invest in it. This is the most comprehensive write up online and the podcast will help you understand the most important topic of our generation.

AI Investment Supercycle: How to Invest in the $3-4tn Race

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 39 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience, reshoring & China idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

• Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.

• Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.

• RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.

• CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring.

• Novo Nordisk (resilience idea): The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life.

• Kurita (resilience, reshoring & China idea): Water services expert with improving margins and benefiting from reshoring of semiconductor production.

• Halma (resilience idea): High quality compounder in safety, health and environmental technologies.

• Quanta Services (resilience & reshoring idea): Countercyclical compounder riding a multi decade infrastructure buildout.

• Infineon (China idea): Power semiconductor leader with strong structural drivers (AI power and China auto) amidst a cyclical recovery.

• Hubbell (resilience & reshoring idea): Pure play on US electrification demand driven by AI and grid investment cycle.

• Iberdrola (resilience & reshoring idea): Best integrated utility in the world with a stellar track record and solid growth driven by networks and renewables

• Nvidia (AI & data center idea): The backbone of the AI world is unstoppable.

• Veolia (resilience & reshoring idea): Resource management giant (water, waste, energy) due for a rerating.

• TJX (resilience idea): The retail giant that keeps winning.

• DSM-Firmenich (resilience idea): The diversified ingredient powerhouse benefiting from a transformational deal.

• Zoetis (resilience idea): Leader in animal healthcare.

• Prysmian (reshoring idea): Global cable leader entering a golden age.

• Bentley Systems (resilience & reshoring idea): The software compounder bringing infrastructure into the AI age.

• Givaudan (resilience idea): The highest quality and most resilient ingredient compounder has a compelling valuation.

• First Solar (reshoring idea): The rising Sun in a new electricity supercycle.

• Arcadis (resilience & reshoring idea): An engineering and design consultancy giant poised for a rerating.

• Thermo Fisher (resilience & reshoring idea): Life Science tools giant just had its clearing event and is a stealth reshoring winner.

• Nexans (reshoring idea): Electrification pure play with visibility into 2030.

• Croda (resilience idea): A covid darling with a ridiculous valuation is at an inflection point.

• Copart (resilience idea): One of the best businesses on Earth is being sold off, should you jump in?

• Schneider Electric (resilience & reshoring idea): The Electrification champion that keeps compounding.

• Cadence (resilience idea): A defensive compounder in the semi space & one of the most profitable software businesses in the world is getting better.

• SAP (resilience idea): The unstoppable growth engine behind every business.

• FICO (resilience idea): The Score Behind the Score.

• Siemens (resilience & reshoring idea): The best conglomerate on Earth is sitting on EUR70bn of optionality.

• MP Materials (resilience & reshoring idea): The Western rare earth champion.

• Sopra Steria (resilience & reshoring idea): This boring IT business is a hidden Defense and Sovereignty play.

• Hoffmann Green Cement (reshoring idea): Cementing a green future.

After reading this article, you will understand why this software and cloud company is so special thanks to the unique vision of its founder, what it does, how it has managed to put itself at the center of the AI infrastructure buildout, why its recent results marked a historical inflection point in the AI race and why it remains one of the best businesses to own for the next decade.

In this article I go through:

1. Oracle’s business and how this software and AI infrastructure giant, listed the day before its rival Microsoft, has been 50 years in the making.

2. How the company has transformed from an enterprise software provider to the biggest hyperscaler, powering the biggest corporations, governments and AI startups in the world.

3. Oracle has shocked the world, with a once in generation event firmly putting it amongst the AI cloud/infrastructure leaders, becoming a true Oracle of AI Age.

4. How its participation in Stargate alongside OpenAI has put the company at the center of the historical AI infrastructure buildout.

5. The investor debates around the company and why its growth and potential is likely still under appreciated and how to think about its financials and valuation for the next years.

Oracle Investment Case