AI Full-stack Duo

The following basket contains only two companies from the technology sector. GOOGL is one of the major companies in the sector which provides various services, ORCL serves as cloud infrastructure company.

Both companies could be considered as top picks for 2027-2028 period as they are considered top winners of AI revolution.

Alphabet placed itself in the better position as they develop their own TPU chips that will protect operational margin of Search and Cloud. Oracle has a massive backlog that exceeds $660B and manages the backend, data center infrastructure, and corporate data of key global enterprises.

Alphabet Inc. [Internal score 73/100] is a Google’s parent company, one of the world’s largest technology conglomerates and a key player in digital advertising, cloud computing, and artificial intelligence. Alphabet has three business segments: Google Services, Google Cloud other projects like Waymo. Google remains the only Big Tech company with full vertical integration in AI that ranges from its own accelerators and cloud infrastructure to frontier models (Gemini) and massive distribution channels (Search, Android, YouTube, and Chrome).

According to the recent financial report revenue of the company increased 25% y-o-y and exceeded $127.5B. Net income for the period is equal to $26.2B due to unrealised loss on the SpaceX stake. Even though the company demonstrated negative FCF for the past quarter equal to (-9.1B USD) for the whole year it is forecasted to be at $11.6B negative level.

Oracle Corporation [Internal score 73/100] is an American giant in the fields of enterprise software and cloud infrastructure. The company has undergone one of the most notable transformations in the technology sector, evolving from a traditional provider of database management systems into one of the fastest-growing players in the market for cloud infrastructure and AI computing power. Its key business segments include Cloud Infrastructure, Cloud Applications, and Database & Multi-Cloud Services.

Revenue for the previous quarter of 2026 increased by 30% y-o-y to $19.3B, while gross profit stayed on the level $11.6B. For the next two quarters revenue is expected to exceed $21.3B and $23.3B accordingly. Net income for the past quarter was around $4.7B vs $2.9B for the same quarter of 2025. Next financial report for the next quarter is expected to be published on the 14th of December.

After the last week sell off in technology sector that seems more emotional than rational to us current price levels are attractive for placing comfortable capital protection barrier level. The market has reacted sharply to fears about AI spending, but Google Cloud’s strong growth and Oracle’s clearer path to positive cash flow show that the underlying business case remains intact. With much of the expected December Fed hike already priced in, the 6 November jobs report could ease pressure on valuations, while Oracle’s 14 December earnings offer a chance to confirm that its large backlog is turning into revenue. Strong results would give both stocks a clear reason to recover from the recent sell-off.