Leo Sun, The Motley Fool
Thu, December 4, 2025 astatine 8:20 AM CST 5 min read
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Oracle’s unreality concern volition support increasing arsenic the AI roar continues.
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TSMC volition nett from the market’s insatiable appetite for much almighty AI chips.
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Palo Alto Networks is expanding its unreality and AI-oriented cybersecurity services.
It mightiness look similar an awkward clip for novice investors to bargain caller stocks. The S&P 500 is hovering adjacent its all-time precocious and looks costly astatine 31 times earnings, and plentifulness of macro headwinds -- including sticky inflation, elevated Treasury yields, and the Trump Administration's unpredictable argumentation shifts -- could compress those frothy valuations.
But if you tin look beyond those near-term challenges, it's inactive a bully thought to accumulate immoderate reasonably valued stocks that person easy-to-understand concern models, unchangeable maturation rates, and wide moats. I judge these 3 beginner-friendly stocks acceptable that statement -- Oracle (NYSE: ORCL), TSMC (NYSE: TSM), and Palo Alto Networks (NASDAQ: PANW) -- and they could inactive churn tiny bets into large fortunes implicit the adjacent fewer decades.
Oracle was erstwhile considered an aging tech institution that had tally retired of country to grow. It was the world's largest database bundle provider, but it faced stiff contention from nimbler cloud-based competitors. However, implicit the past decade, the institution transformed its on-premise bundle into cloud-based services, expanded its ain unreality infrastructure platform, and acquired much companies to grow into the endeavor assets readying (ERP) and healthcare IT markets.
That translation initially compressed Oracle's margins, but it's present increasing rapidly again arsenic much companies ramp up their spending connected its unreality infrastructure services to enactment their latest AI (artificial intelligence) applications. It predicts its Oracle Cloud Infrastructure (OCI) gross volition surge 77% to $18 cardinal successful fiscal 2026 (which ends successful May 2026) and relationship for 27% of its projected gross for the twelvemonth -- past soar to $32 cardinal successful fiscal 2027, $73 cardinal successful fiscal 2028, $114 cardinal successful fiscal 2029, and $144 cardinal successful fiscal 2030.
From fiscal 2025 to fiscal 2028, analysts expect Oracle's gross and adjusted net per stock (EPS) to turn astatine a CAGR of 30% and 22%, respectively, arsenic that booming concern becomes its halfway maturation engine. Oracle's banal inactive looks reasonably valued astatine 24 times adjacent year's earnings, and I judge it remains 1 of the safest and astir straightforward ways to nett from the secular enlargement of the unreality and AI markets.

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