Oracle's Cloud Backlog Could Double Stock by 2029

Oracle's extensive backlog of $664 billion in remaining performance obligations, a $209 billion increase from the previous year, positions the company for substantial growth. Cloud infrastructure revenue demonstrated explosive growth, reaching $7.4 billion in the first quarter of fiscal 2027, a 121% rise year-over-year.

Management expects approximately half of this backlog to be converted into sales within the next 36 months. High GPU utilization at 97.9% underscores the intense demand for AI workloads, with renewal capacity commanding a 20% premium.

Despite concerns over capital expenditures and current negative free cash flow, Oracle's strategy utilizes customer prepayments to fund expansion. If the backlog converts as projected and the stock maintains its current valuation multiples, a $1,000 investment made on October 14, 2026, at $130 per share could be worth around $2,430 by 2029.