Oracle's stock has dipped in 2025, but its booming cloud infrastructure business and AI-driven growth could drive a 197% surge over the next five years.

Oracle has had a phenomenal five years in the stock market, posting gains of 230%, beating the Nasdaq Composite by 143%.  The stock is now down by 7% in 2025, which coincides with the Nasdaq's decline. The Q3 fiscal 2025 results figure shows 8% revenue growth with adjusted earnings climbing 4%, trailing Wall Street estimates. Also, the revenue guidance for next quarter, suggesting growth of 9%, does not quite meet the analysts' call for growth of 11%.

The remaining performance obligations for Oracle rose by 62% year-on-year to $130 billion, with $48 billion in new contracts being awarded last quarter. Nevertheless, considering the rapid demand for cloud infrastructure services in particular for AI training and deployment, the future holds great promise for Oracle. However, because demand outpaces supply, Oracle is limited in its capacity.

The company is expanding its data center capacity intensely, doubling it this fiscal year and tripling it next. This enhancement is expected to contribute revenues over 15% towards Oracle in the fiscal year 2026 and 20% in the fiscal year 2027, exceeding the original estimates. According to analysts, the cloud infrastructure-as-a-service market will reach $580 billion a year by 2030, allowing Oracle and opportunity for tremendous growth.

Oracle expects to grow its annual earnings by more than 20% until the end of the fiscal year 2029 and possibly to $18.31 a share by 2030. Given its strong long-term outlook, the recent falls in Oracle stock present a significant buying opportunity.