Harsh Chauhan, The Motley Fool

Thu, Jun 26, 2025, 1:55 AM7 min read

• Share prices of both Oracle and CoreWeave are up nicely so far in 2025, and they seem primed for more upside.

• One of these companies is growing at a much faster pace than the other.

• A closer look at their valuations will help investors better understand which AI stock is ideal for their portfolios.

• 10 stocks we like better than CoreWeave ›

The demand for cloud computing infrastructure used to help train artificial intelligence (AI) models and deploy them into production is increasing at an incredible pace. It's one of the main reasons why shares of CoreWeave (NASDAQ: CRWV) and Oracle (NYSE: ORCL) have been in fine form on the stock market in 2025.

Both companies rent out AI-focused data centers powered by premium graphics processing units (GPUs) from the likes of Nvidia, AMD, and others. To meet the increasing demand, both companies are quickly adding significant new data center capacity. The size of the cloud infrastructure market is expected to grow from around $178 billion this year to more than $1.1 trillion in 2033, with AI set to play a key role in this remarkable growth. Oracle and CoreWeave aim to help investors take advantage of this massive opportunity.

Both stocks have real potential for outsized performance, but if you have to choose just one of these AI stocks, which one should you buy? Let's find out.

Oracle's stock price is up 50% over the past 12 months, and it seems set for more upside going forward, given the impressive pace at which the demand for its cloud infrastructure is increasing. The company released its fiscal 2025 fourth-quarter results (for the three months ended May 31) earlier this month, and it reported a solid 41% year-over-year increase in its remaining performance obligations (RPO) to a whopping $138 billion.

RPO refers to the total value of a company's contracts yet to be fulfilled, which means that Oracle is sitting on a huge revenue pipeline that could help it grow at a much stronger pace following last year's top-line increase of 8% (totalling $57.4 billion). Not surprisingly, Oracle expects its revenue growth rate in fiscal 2026 to almost double.

The company's Oracle Cloud Infrastructure (OCI) segment will play a central role in driving this acceleration as its revenue is expected to increase by 70% in fiscal 2026, following a 51% increase in fiscal 2025. What's more, Oracle management points out that it may be understating its RPO growth as the contracts from the $500 billion Stargate AI infrastructure project are yet to reflect in its revenue pipeline.