Oracle and Nvidia: Surprising AI Stock Winners of 2026

Dec 21, 2025, 2:43 AM

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As the artificial intelligence (AI) landscape continues to evolve, two companies, Oracle and Nvidia, are emerging as potential surprise winners in the stock market by 2026. Despite facing challenges, both firms have significant growth prospects that could lead to remarkable recoveries and gains for investors.

Oracle has recently faced a steep decline in its stock price, shedding 42% of its value since reaching a 52-week high in September 2023. This downturn is largely attributed to investor concerns over the company's heavy spending on AI infrastructure, which has inflated its debt levels significantly. Oracle's debt reached $124 billion by the end of its last quarter, a 39% increase from the previous year. However, the company has a substantial revenue backlog, primarily driven by a $300 billion contract with OpenAI that is set to commence in 2027.

Despite the current skepticism, Oracle's fiscal outlook is improving. The company reported a 14% year-over-year revenue increase to $16.1 billion, although it fell short of analyst expectations. Nevertheless, Oracle's remaining performance obligations (RPO) surged to $523 billion, a staggering 438% increase from the previous year, indicating strong future revenue potential. Analysts predict that Oracle's revenue growth could accelerate to 33% in fiscal 2027, doubling the growth rate expected for the current fiscal year. This potential turnaround could make Oracle a surprising stock winner in 2026, especially if it successfully converts its backlog into revenue.

On the other hand, Nvidia has been a dominant player in the AI sector, particularly with its graphics processing units (GPUs). Despite recent stock weakness, Nvidia's CEO Jensen Huang announced that the company has $500 billion in orders for its chips for 2025 and 2026 combined, signaling confidence in continued demand for AI technology. Analysts expect Nvidia's sales to reach $286.7 billion in 2026, reflecting a reacceleration of growth.

While concerns exist regarding Nvidia's potential loss of market dominance due to emerging alternatives like tensor processing units (TPUs) from Alphabet, many believe these fears are overstated. Nvidia's GPUs remain the preferred choice for AI training, and the company is well-positioned to maintain its market share. If Nvidia can continue to innovate and meet the growing demand for AI computing, it could surprise investors with significant stock gains in 2026.

Both Oracle and Nvidia are navigating a complex landscape filled with challenges and opportunities. Oracle's aggressive investments in AI infrastructure, despite current debt concerns, could pay off as it fulfills its substantial backlog. Meanwhile, Nvidia's strong order book and market position suggest it could continue to thrive in the competitive AI sector.

In conclusion, as the AI market matures, Oracle and Nvidia are poised to be surprising winners in 2026. Investors should keep a close eye on these companies as they adapt to the evolving technological landscape and capitalize on the growing demand for AI solutions. With their respective strategies and market positions, both stocks could yield impressive returns in the coming years, defying current market skepticism and expectations.

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