Oracle ORCL surged 4.95% in pre-market trading following Goldman Sachs upgrade to Buy with 240 price target

Oracle (NYSE:ORCL) surged 4.9537% in pre-market trading on January 12, 2026, signaling renewed investor confidence ahead of its earnings report. The move followed a strategic upgrade from Goldman Sachs, which elevated its rating to Buy from Neutral with a $240 price target, reflecting a 27% upside potential. Analyst Gabriela Borges highlighted Oracle’s competitive edge in AI compute workloads and its projected expansion in cloud revenue share, targeting 25% within three years.

The firm noted Oracle’s data center infrastructure as a catalyst, particularly the phased activation of its 1.2 GW Abilene facility, which is expected to drive revenue acceleration. Goldman Sachs also emphasized Oracle’s manageable debt trajectory, projecting total borrowing below $80 billion to support its growth initiatives. While near-term margin pressures remain a risk, the firm underscored a favorable 4:1 upside/downside skew in its earnings scenarios.

Regulatory progress further bolstered sentiment, as Michigan authorities approved Oracle’s 1.4 GW data center partnership with OpenAI. This development aligns with the company’s strategic focus on AI infrastructure, reinforcing its long-term positioning in the cloud and AI sectors. Analysts remain divided, with UBS lowering its price target to $280 amid AI-related concerns, while Jefferies maintained a $400 target, citing Oracle’s expansion potential.

Analysts have issued a spectrum of price targets, ranging from $240 to $400, illustrating the sector’s uncertainty. These projections reflect differing views on the pace of AI adoption and Oracle’s ability to scale infrastructure profitably. Meanwhile, Oracle’s stock volatility over the last year has remained relatively contained compared to peers in the cloud space.