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

Generated by AI AgentAinvest Pre-Market RadarReviewed byAInvest News Editorial Team
Monday, Jan 12, 2026 6:33 am ET1min read
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Aime RobotAime Summary

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Oracle
shares surged 4.95% pre-market on Jan 12, 2026, after
Goldman Sachs
upgraded to Buy with a $240 target, citing AI/cloud growth.

- Analyst Gabriela Borges highlighted Oracle's potential to capture 25% of new cloud revenue within three years, driven by phased Abilene data center operations.

- Regulatory approval for a 1.4-GW Michigan data center (with OpenAI) reinforces Oracle's infrastructure expansion aligned with AI ambitions.

- Upcoming Abilene data center activation will boost cloud capacity and AI workload support, enhancing Oracle's competitiveness against AWS and Azure.

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.

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