Oracle shares surge 4.95% on Goldman Sachs' Buy upgrade to $240 citing AI cloud growth

Oracle shares surged 4.95% in pre-market trading on January 12, 2026, driven by a bullish upgrade from Goldman Sachs, which raised its rating to Buy from Neutral with a $240 price target, reflecting confidence in the company’s AI and cloud growth prospects.

The upgrade follows analyst Gabriela Borges’ coverage, highlighting Oracle’s potential to capture 25% of new cloud revenue within three years. Goldman Sachs also noted the phased operationalization of Oracle’s Abilene data center as a catalyst for revenue acceleration in 2026.

Regulatory approval for Oracle’s 1.4-GW data center in Michigan, in partnership with OpenAI, further underscores its strategic expansion, aligning with the firm’s long-term infrastructure and AI ambitions.

With the Abilene data center expected to go online in the coming months, Oracle is poised to increase its cloud capacity and better support AI workloads. This development is particularly timely as global demand for AI-driven cloud services continues to rise, positioning Oracle to compete more effectively with Amazon Web Services and Microsoft Azure.