Bernstein’s five-year outlook finds that generative AI will expand the total addressable market for cloud infrastructure and platform services. As enterprises deploy more autonomous, goal-oriented software agents, demand for scalable compute and storage will accelerate, creating new revenue streams for major cloud providers.

Analysts highlight that supporting complex AI training and inference workloads will drive unprecedented growth in GPU/ASIC and CPU capacity requirements. Oracle’s infrastructure-as-a-service offerings stand to benefit from increased enterprise spending on high-performance compute resources through 2030.

The migration of on-premise databases to cloud environments is expected to intensify as organizations seek specialized, AI-native database solutions. This trend should bolster Oracle’s platform-as-a-service business by capturing database workloads transitioning to cloud architectures.

While agile startups may lead in niche AI applications, the overall software ecosystem remains resilient with significant opportunities for established cloud players. Oracle’s ability to bridge traditional software capabilities with new compute-heavy AI infrastructure will be critical to maintaining market share and driving future revenue growth.