12 Best Cloud Computing Stocks to Buy According to Analysts

3) Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 91

Average Upside Potential: 32.6%

Oracle Corporation (NYSE:ORCL)’s Oracle Cloud Infrastructure (OCI) gives numerous businesses scalable and secure computing power, network capabilities, and storage. The company’s cloud business was the key driver of its recent success in Q2 2025. Oracle Cloud Infrastructure demonstrated healthy growth, with revenues rising 52% YoY in constant currency. This growth stemmed from elevated demand for AI compute and the company’s strategic investments in expanding its cloud capabilities. This fiscal year, Oracle Corporation (NYSE:ORCL) expects total Oracle Cloud revenue to top $25 billion.

As of Q2 2025, Oracle Corporation (NYSE:ORCL)’s remaining performance obligation (RPO) stands at ~$97 billion, reflecting growth of 50%  YoY in constant currency. To give context, RPO refers to the total revenue amount the company expects to recognize in the future from contracted, not fulfilled, customer commitments. This reflects the growing trend of customers wanting larger and longer contracts, believing that Oracle Cloud Services continue to benefit their businesses. Furthermore, Oracle Corporation (NYSE:ORCL)’s cloud RPO grew ~80% and now represents ~3/4^th of the total RPO. The company expects ~39% of the total RPO to be recognized as revenue in the upcoming 12 months and it continues to expect acceleration in growth of current RPO.

The company’s partnership with AWS and its open multi-cloud strategy should aid Oracle Corporation (NYSE:ORCL)’s future growth. This approach enables the company to leverage AWS’s extensive customer base while providing its own unique services and databases. The partnership is expected to potentially result in increased adoption of Oracle Corporation (NYSE:ORCL)’s cloud services among enterprises already using AWS, further expanding Oracle’s market reach.

Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:

“Oracle Corporation (NYSE:ORCL) announced second-quarter results that exceeded consensus expectations, driven by growth in its cloud infrastructure business, which is benefiting from demand for AI applications. Investor sentiment was further bolstered by the company’s announcement of a new partnership with Amazon.”