The influence of the technology industry on the world economy is growing at a remarkable pace. Research firm Gartner projects that global expenditures on information technology (IT) will hit $5.43 trillion by 2025.

The swift integration of artificial intelligence (AI) across the globe is anticipated to account for a large share of this investment. The tech-centric Nasdaq-100 index has climbed nearly 17% this year, largely propelled by leading companies leveraging AI.

Key players in the tech sector are establishing strong competitive advantages in fields such as semiconductors and cloud computing. If you have $5,000 that isn’t needed for immediate expenses or emergencies, putting it into one or both of these companies could yield substantial long-term gains.

1. Oracle

In recent years, Oracle ( ORCL -0.91%) has transitioned from being primarily a database provider to becoming a major force in AI-powered cloud infrastructure. Its cloud solutions now support complex AI operations for major organizations like OpenAI, Meta Platforms, Nvidia, and Advanced Micro Devices. Oracle’s expansive data centers offer faster and more cost-effective training for large AI models.

As the world’s largest holder of high-value private data, Oracle is well placed to benefit from the expanding market for AI inference, which involves deploying AI models in real time. The company utilizes vectorization to organize vast datasets in its AI databases, making them easily accessible for leading large language models.

By integrating all client data sources with large language models within its cloud, Oracle enables customers to utilize advanced AI reasoning while maintaining the privacy and security of their sensitive information.

Cloud infrastructure sales jumped 54% year over year to $3.3 billion in the first quarter of fiscal 2026 (ending Aug. 31). The company’s leadership now forecasts that revenue will soar 77% year over year to $18 billion in fiscal 2026, with rapid growth expected to reach $32 billion by 2027.

These ambitious goals seem within reach, especially after Oracle secured a $300 billion agreement with OpenAI to provide computing resources over the next five years. With a $455 billion backlog at the close of the first quarter, Oracle is set to see continued revenue growth in the coming years.

Currently, Oracle’s shares are valued at 41.5 times projected earnings, which is relatively high. The company also holds a significant $91.3 billion in debt, expected to rise further with an $18 billion bond issue in September 2025. Nevertheless, with demand for Oracle’s cloud offerings far exceeding supply and its pivotal position in AI infrastructure, the company is likely to keep increasing its stock price despite these challenges.

2. Micron 

Micron Technology ( MU 2.28%) plays a vital role in supplying memory and storage solutions essential for building global AI infrastructure. In the fourth quarter of fiscal 2025 (ending Aug. 28), Micron’s revenue surged 46% year over year to $11.3 billion, and adjusted earnings per share soared 156.8% to $3.03. For the full fiscal year, revenue climbed 49% to $37.4 billion, with gross margins increasing by 17 percentage points to 41%.

The company’s data center division has been the primary driver of this expansion, making up 56% of total revenue and achieving a 52% gross margin in fiscal 2025.

This impressive growth was largely fueled by Micron’s high-bandwidth memory (HBM) and advanced DRAM products, which together brought in $10 billion during fiscal 2025. HBM alone contributed $2 billion in the fourth quarter, equating to an annualized rate of nearly $8 billion.

Demand is particularly strong for the third-generation extended HBM (HBM3E) products, as their faster data transfer and reduced latency are vital for AI tasks. The company has already locked in pricing agreements for most of its HBM3E output for the majority of 2026.

HBM’s market share is projected to match that of DRAM by the third quarter of 2025, highlighting the strong demand and revenue prospects for HBM in the near future.

Micron has also started sampling its next-generation, more efficient HBM4 products. The company is well positioned to capitalize on the upcoming surge in AI-related demand.

It anticipates that the supply of DRAM and NAND will not meet demand in 2025. Beyond AI servers, there is also rising demand for memory and storage in PCs, smartphones, and vehicles. This supply-demand imbalance is likely to drive prices higher, which should further enhance Micron’s revenue and profitability.

The management team has issued optimistic guidance for the first quarter of fiscal 2026, projecting revenue between $12.2 billion and $12.8 billion, gross margins of 50.5% to 52.5%, and adjusted earnings per share ranging from $3.60 to $3.80.

Despite these strong industry trends and solid financial results, Micron’s stock is priced at just 10.5 times forward earnings, much lower than the multiples seen for many leading AI infrastructure firms.

Therefore, with the market still treating Micron largely as a cyclical memory manufacturer, it could prove to be an outstanding investment choice in 2025.