Technology: The Engine of Global Growth
Technology continues to shape the backbone of the global economy. From artificial intelligence (AI) and data analytics to cloud computing and semiconductor innovation, the world’s digital transformation is accelerating at a historic pace. According to Gartner, global spending on information technology (IT) is expected to reach $5.43 trillion in 2025, driven by the rapid adoption of AI and automation across every major industry.
As companies race to implement AI solutions and scale their digital ecosystems, leading tech firms are positioned to capture immense long-term value. The Nasdaq-100 index is already up nearly 17% this year, fueled largely by AI-driven companies at the forefront of this technological revolution.
But while some tech giants may appear overvalued after the sector’s explosive rally, there are still opportunities for investors seeking sustainable growth and resilience over the next decade. Two standout names—Oracle (NYSE: ORCL) and Micron Technology (NASDAQ: MU)—are carving out dominant positions in cloud infrastructure and memory technology. For investors with a long-term outlook, these stocks could deliver exceptional returns through 2026 and beyond.
1. Oracle (NYSE: ORCL): The AI Infrastructure Titan
Once viewed primarily as a database powerhouse, Oracle has undergone one of the most successful transformations in the tech industry. Today, it is a leading player in AI-driven cloud infrastructure, providing the computational backbone for some of the world’s largest and most advanced artificial intelligence workloads.
Its cloud division is now powering high-performance systems for major clients like OpenAI, Meta Platforms, Nvidia, and Advanced Micro Devices (AMD). These companies rely on Oracle’s ultra-efficient, high-speed data centers, which are designed specifically to handle the massive computing needs of AI model training and inference.
Oracle’s AI and Cloud Momentum
In the first quarter of fiscal 2026 (ending August 31), Oracle’s cloud infrastructure revenue surged 54% year over year, hitting $3.3 billion. Management expects total cloud revenue to grow 77% year over year to $18 billion by the end of fiscal 2026—and to soar toward $32 billion by 2027.
This growth trajectory is backed by a $300 billion, multi-year contract with OpenAI, which will use Oracle’s cloud infrastructure to scale its next-generation AI models. Furthermore, Oracle’s $455 billion backlog at the end of Q1 provides powerful visibility into future earnings.
The AI Data Advantage
What sets Oracle apart isn’t just its infrastructure—it’s the value of the data it safeguards. The company is the largest custodian of high-value private data globally, a crucial asset as AI shifts from public datasets to enterprise-level private data for training models.
Using vectorized data architecture, Oracle enables clients to integrate large language models with their proprietary information, unlocking advanced reasoning capabilities while maintaining the highest standards of security and compliance. This balance between AI innovation and data protection positions Oracle uniquely within the enterprise ecosystem.
Challenges and Long-Term Outlook
Oracle’s rapid expansion hasn’t come without challenges. The company currently trades at around 41.5 times forward earnings, and its $91.3 billion debt load remains high due to its September 2025 bond issuance. However, these risks are offset by its explosive demand, robust customer pipeline, and status as a mission-critical AI infrastructure provider.
In a world where computing power is the new oil, Oracle has become one of the most indispensable suppliers. Its long-term partnerships, growing market share, and expanding global data center footprint make it a foundational AI stock for long-term investors.
2. Micron Technology (NASDAQ: MU): Powering the AI Memory Boom
While Oracle powers the AI cloud, Micron Technology provides the memory and storage that make those systems run efficiently. The Idaho-based semiconductor company is one of the world’s leading suppliers of high-performance DRAM, NAND flash, and high-bandwidth memory (HBM)—all of which are essential to the data-intensive demands of AI computing.
Explosive Growth Across AI Infrastructure
Micron’s fiscal 2025 results underscore its massive growth potential. In the fourth quarter (ending August 28), revenue surged 46% year over year to $11.3 billion, while adjusted earnings per share jumped 157% to $3.03. For the full fiscal year, revenue climbed to $37.4 billion, with gross margins expanding by 17 percentage points to 41%.
More than half of Micron’s revenue—around 56%—now comes from the data center segment, which also delivered a record 52% gross margin. This growth is driven largely by booming demand for AI servers, which require significantly more memory and storage than traditional systems.
High-Bandwidth Memory: The AI Catalyst
Micron’s breakthrough product line, High-Bandwidth Memory (HBM), has become one of its most important growth drivers. HBM products are designed for AI training and inference workloads that need lightning-fast data transfer and low latency.
In fiscal 2025, Micron’s HBM revenue alone reached $2 billion in the fourth quarter, putting it on pace for an $8 billion annual run rate. The company’s latest HBM3E generation has been met with strong demand from major chipmakers, including Nvidia and AMD, both of whom rely on Micron’s modules for their next-gen GPUs.
Micron has already secured pricing agreements for most of its 2026 HBM3E supply, and it’s preparing to launch HBM4, which promises even faster speeds and better energy efficiency—critical factors as AI models grow exponentially more complex.
Market Outlook: Tight Supply, Rising Prices
The global semiconductor market is entering a supply-demand imbalance, particularly for DRAM and NAND products. Micron expects demand to exceed supply through 2026, as AI servers, personal computers, and smartphones all require more memory capacity. This mismatch is already driving strong pricing power, which should further boost margins and profitability in upcoming quarters.
For the first quarter of fiscal 2026, Micron projects $12.2–$12.8 billion in revenue, with gross margins of 50.5% to 52.5% and adjusted EPS between $3.60 and $3.80—a testament to the company’s accelerating profitability.
Undervalued Despite AI Tailwinds
Despite this robust growth, Micron remains undervalued compared to its peers. The stock trades at just 10.5 times forward earnings, a fraction of what other AI infrastructure players command. Many investors still view Micron as a cyclical memory stock, but its transformation into a key AI enabler makes that perception outdated.
As the demand for AI chips, edge computing, and autonomous systems continues to expand, Micron’s role in the AI hardware ecosystem is becoming indispensable. For long-term investors, the stock offers both growth and value—a rare combination in today’s tech-heavy market.
Why These 2 Tech Stocks Deserve a Place in Your Portfolio
The ongoing digital transformation isn’t just about faster software—it’s about the infrastructure and hardware that power intelligent systems. Oracle and Micron stand out as two companies uniquely positioned to benefit from this long-term secular shift.
- Oracle has evolved into a global AI infrastructure leader, providing the computational backbone for major AI firms like OpenAI and Nvidia.
- Micron has become the memory powerhouse fueling those same systems, supplying the high-performance chips required to run large AI models efficiently.
Both companies offer strong growth trajectories, robust fundamentals, and clear visibility into future revenue streams—qualities that are increasingly rare in a volatile market.
Investors looking to build wealth steadily through 2026 and beyond should consider buying and holding these two names. In the emerging AI-driven economy, Oracle and Micron aren’t just participants—they’re pioneers shaping the future of technology.