John Ballard, The Motley Fool

Sat, Jun 21, 2025, 3:55 AM4 min read

• Oracle is experiencing accelerating growth in its cloud business, sending the stock to new highs.

• Broadcom is benefiting from the growing demand for semiconductors and networking switches for advanced AI workloads in data centers.

• 10 stocks we like better than Oracle ›

Artificial intelligence (AI) continues to promise great returns for long-term investors in companies putting it to use in their businesses. Every industry is exploring how this technology can boost efficiency and innovation. This is expected to boost the global economy by trillions of dollars in the coming years.

Here are two top tech stocks to buy that benefit from growing investment in AI services and hardware.

Oracle (NYSE: ORCL) stock recently surged to a new high following an impressive earnings report for its fiscal fourth quarter. The stock has had an incredible run over the past few years, but its accelerating growth in cloud services makes the stock a compelling buy even at these all-time highs.

Oracle is a leader in offering applications and database services for enterprise. Its competitive moat is based on a comprehensive suite of services that work well together, and this integration of services is driving strong demand for its cloud and AI offerings.

Cloud revenue grew 27% year over year last quarter, and it's expected to accelerate. Management projects fiscal 2026 cloud revenue growing over 40% compared to fiscal 2025. This is causing analysts to raise their full-year earnings estimates. Earnings per share are now projected to reach $6.75 for fiscal 2026 and climb to $9.92 by fiscal 2028.

Oracle is in a strong competitive position because it offers companies the ability to use their own data with popular AI large language models while maintaining security.

Revenue from cloud infrastructure services grew 52% over the year-ago quarter, and management expects this business to accelerate over the next year. Its involvement in the Stargate project with OpenAI, which promises to build $500 billion worth of AI infrastructure in the U.S. over the next four years, supports attractive growth prospects.

Oracle stock looks expensive from a valuation perspective, with the stock trading at a high multiple of earnings. But it's also seeing accelerating growth. The stock should climb higher over the next few years as it rides the wave of investment pouring into AI cloud services.

Strong demand for top cloud providers is good news for Broadcom (NASDAQ: AVGO), which supplies semiconductors, software, and networking products for data centers. It also supplies chips for other markets, including smartphones.