Why Oracle Stock Is a Must-Buy AI Juggernaut in 2024

Stocks to buy

In an era where artificial intelligence is rapidly transforming industries, Oracle stock (NYSE:ORCL) is poised to emerge as a dominant player. Oracle, a legacy software company, has been aggressively positioning itself to capitalize on the AI revolution. 

Oracle’s compelling AI prospects rest on its robust cloud infrastructure to accelerate AI workloads. Its Gen2 cloud infrastructure, robust data center operations, and dominance in enterprise software solutions provide fertile ground for AI integration. The sky is truly the limit, and the company remains well positioned to capitalize on this burgeoning sector over the next decade. 

Gen2 Cloud Infrastructure

Oracle’s Gen2 cloud infrastructure boasts attributes that set it apart as a premier platform for the development and deployment of AI solutions. Unlike many competitors, Oracle has designed its cloud specifically for enterprise workloads, a decision that is paying dividends in the age of AI. 

Gen2 cloud delivers exceptionally high performance due to its unique architecture that reduces network congestion. This is critical for AI, as training and inference running complex models demands significant computational power.

Moreover, the company understands the importance of data security for enterprises. Its cloud contains robust security protocols, and its existing Oracle cloud customers are likely to adopt its solutions. With their cloud business at a $20 billion run rate in 2024, the true growth potential of AI has yet to be realized.

Rapid Data Center Expansion

Recognizing the explosion in AI-driven computation, Oracle stock is investing heavily in expanding its global data center footprint. This expansion is crucial to meet the ever-increasing demands for processing power and storage applications in the cloud. 

Expanding geographically distributed data centers ensures that AI data processing can occur closer to users, thereby reducing latency and enhancing application responsiveness. Furthermore, massive AI models require vast amounts of storage and computational power. Oracle’s data center expansion ensures it can support even the most demanding AI projects. 

Apart from their plan of building 100 new data centers, Oracle has expanded its partnership with Microsoft (NASDAQ:MSFT) to satisfy global demand for Azure. This partnership and multi cloud footprint is now in Germany, with a total of 15 regions planned for this year. The partnership will expand to other areas including Brazil South, Canada Central, South East Asia, and UAE North, to name a few. 

Oracle Stock: Their Cloud Business is in Full Swing

Oracle stock continues to be a leading figure in the AI boom. Their Gen2 cloud infrastructure is crucial to meeting the ever-increasing demands of AI applications. Enterprise workloads require robust computation power, and only a cloud few players have the necessary infrastructure to take on the challenge. 

The company is also rapidly expanding their data center operations globally, and their continued partnership with Microsoft is a tell-tale sign of what’s to come. Investors should not be surprised to see their cloud business triple in size as demand for AI drives revenue growth and profitability. This makes the stock a strong buy in 2024 and beyond.

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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