Oracle’s (ORCL) $553B Backlog Signals Strong AI Demand. Which 3 Stocks Could Benefit the Most?

Oracle ORCL -1.43% ▼ delivered robust fiscal third-quarter results, pointing to continued demand for AI data centers. The company said its remaining performance obligations (RPO), a measure of its backlog, reached $553 billion, driven largely by large AI infrastructure contracts. The jump suggests companies are still signing major deals for computing power used to train and run AI models.

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The update also eased concerns that spending on AI data centers might slow. Instead, it points to steady investment across the AI infrastructure market, which could benefit companies tied to the AI supply chain.

Here are 3 companies that stand to benefit from this trend:

**1. Nvidia NVDA +1.16% ▲ **

Nvidia remains at the center of the AI infrastructure boom. The company supplies the GPUs used to power many AI data centers, including those built by cloud providers and enterprise customers.

Its upcoming Rubin platform, designed for faster and more efficient AI supercomputers, is expected to drive the next wave of AI deployments. The company is also securing large, long-term deals to support this growth. For example, Nvidia recently signed a multi-year partnership with Mira Murati’s Thinking Machines Lab, which plans to deploy at least one gigawatt of Nvidia’s next-generation systems starting in 2027.

As companies sign more contracts for AI computing capacity—such as those reflected in Oracle’s growing backlog—demand for Nvidia’s chips and systems is likely to remain strong.

On Wall Street, Nvidia stands out, with analysts projecting about 48% upside and a Strong Buy rating.

**2. Arista Networks ANET +1.79% ▲ **

**Arista **provides the high-speed networking gear that links thousands of GPUs inside AI data centers. As AI clusters grow larger, fast networking has become critical because chips need to move huge amounts of data quickly.

The opportunity for Arista is expanding. The company recently said its total addressable market has increased from about $60 billion to $105 billion, driven largely by AI data-center demand.

Arista Networks also has a Strong Buy rating and roughly 30% upside.

**3. Broadcom AVGO -0.92% ▼ **

Broadcom is another key player in the AI infrastructure boom. The company designs custom AI chips and networking hardware used in large data centers. During its recent earnings update, Broadcom said it sees a path to $100 billion in AI chip revenue by 2027. The company also said that it is working with six major tech firms to build custom AI chips, including a new partnership with Anthropic.

As AI data centers expand, demand for Broadcom’s custom chips and networking technology could continue to grow.

At $460.40, AVGO’s average price target suggests about 35% upside from current levels.

Which Is the Best AI Stock, According to Analysts?

Using TipRanks’ Stock Comparison Tool, we compared leading AI stocks to see which one offers the highest upside potential based on Wall Street analyst forecasts.

Investors can dig deeper to decide which AI stock best fits their strategy. Below is a screenshot for reference.

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