Oracle is a top long-term pick due to massive RPO backlog and low valuation; speaker is bullish and owns shares.

In this case, although I wasn't very interested in the previous three stocks, I am very impressed with this stock now at the current prices. It is the long-established technology giant that has reinvented itself to become a major provider of cloud computing services, Oracle, codenamed ORCL, in which Cohen nearly tripled his stake, acquiring more than $300 million in additional shares.

in which Cohen nearly tripled his stake , acquiring more than $300 million in additional shares. I know I talk about this topic a lot on the channel, so I'll try to be brief here.

But yes, I am very optimistic about it in the long term. If you want to know how fast artificial intelligence is currently booming, just look at Oracle’s latest earnings report, where sales and profits rose by more than 30% each, exceeding analysts’ expectations.

The main driver behind this was the cloud infrastructure business, which more than doubled in size, achieving 121% year-on-year growth.

If you want to know how fast artificial intelligence is currently booming, just look at Oracle’s latest earnings report , where sales and profits rose by more than 30% each, exceeding analysts’ expectations.

However, this is not the most important story. The real leap is yet to come, and it relates to what the company has been able to secure for the future as residual performance commitments (RPOs).

It is simply a list of its signed contracts that have not yet been delivered. Its size now stands at $664 billion, or more than half a trillion dollars. Now, to look at it from a broader perspective, we find that the backlog of orders is almost nine times greater than the total sales the company achieved in the entire last year.

In other words, this is a long-established giant that has now become one of the world’s leading and most in-demand cloud computing service providers, using a proprietary networking technology that connects thousands of Nvidia and AMD graphics processing units together at speeds exceeding those of traditional networks, allowing customers to train massive AI models at super-fast speeds.

All of this is attracting AI developers more than ever before. For this reason, leading companies such as xAI, Meta and OpenAI are currently racing to use its infrastructure.

However, because a large portion of these backlogs are directly related to OpenAI, and because of Oracle's massive infrastructure spending, which drains almost all of its free cash flow, Oracle's stock has underperformed in the market despite the massive growth expected in the coming years.

In the long run, I think Oracle will be in an excellent position, and given its extremely low valuation, which is well below the sector averages of over 50% in terms of price-to-earnings ratio, I would easily put this stock at the top of the list among the other stocks here.

I've bought a lot of it myself too. So, I'm pleased to see Cohen so optimistic about it. This makes me feel good about my investment.

But for me personally, Oracle is the only one that interests me on this list, and frankly, I'm very impressed with it, so it's my favorite choice.