Oracle Turned $1,000 Into $5,726 Over a Decade but Recent Buyers Lost 37%

"Oracle Corporation ( NYSE: ORCL) spent two decades as a database giant before pivoting hard into cloud infrastructure. That shift accelerated dramatically after 2020, when hyperscale AI workloads became the company's defining growth engine. Oracle built modular data centers, signed partnerships with OpenAI and Meta, and positioned itself as the fastest, cheapest option for training large language models. The strategy worked. Cloud services now represent 77% of total revenue and grew 55% year-over-year in the most recent quarter."

"The company's remaining performance obligation hit $97.3 billion in Q2 FY2025, up 50% in constant currency. CEO Safra Catz noted that "our cloud RPO grew nearly 80% and now represents nearly three-fourths of total RPO." Oracle's GPU consumption revenue surged 336% as demand from AI customers outstripped supply. Chairman Larry Ellison emphasized the company's technical edge: "We just extended our AI performance advantage by delivering the largest and fastest AI supercomputer in the world, scaling up to 65,000 Nvidia H200 GPUs.""

"Your $1,000 Became $5,726 Over a Decade 1-Year Return Initial Investment: $1,000 Current Value: $1,319 Total Return: 31.9% S&P 500 (same period): Approximately 26% 5-Year Return Initial Investment: $1,000 Current Value: $3,817 Total Return: 281.7% Annualized Return: 30.7% S&P 500 (same period): Approximately 15% annualized 10-Year Return Initial Investment: $1,000 Current Value: $5,726 Total Return: 472.6% Annualized Return: 19.0% S&P 500 (same period): Approximately 13% annualized"

Oracle shifted from a database vendor into a cloud infrastructure and AI leader, accelerating after 2020 with hyperscale AI workloads. The company built modular data centers and partnered with OpenAI and Meta to offer fast, low-cost LLM training. Cloud services account for 77% of revenue and grew 55% year over year. Remaining performance obligation reached $97.3 billion in Q2 FY2025, up 50% in constant currency, with cloud RPO up nearly 80% and representing nearly three-fourths of total RPO. GPU consumption revenue rose 336% as AI demand exceeded supply. Oracle scaled an AI supercomputer up to 65,000 Nvidia H200 GPUs. Stock returns outpaced the S&P but exhibited extreme volatility, including a 46% drawdown after a September 2025 peak.

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