Oracle shares surge 6.63% on OpenAI rebuttal and healthcare contracts

Oracle shares surged 6.63% in pre-market trading on December 22, 2025, signaling renewed investor confidence in the tech giant’s strategic direction. The move comes amid a mix of corporate developments and analyst commentary that highlight both challenges and opportunities for the company.

Recent analyst activity has underscored diverging views on Oracle’s financial trajectory. While some firms, including RBC Capital and Goldman Sachs, have cut price targets due to concerns over capital expenditures and free cash flow, others like Citizens maintain a positive stance, citing stable contract valuations and manageable financing costs. Jim Cramer’s remarks further amplified market focus, emphasizing Oracle’s role as a “linchpin” in the AI ecosystem while cautioning on the need for fiscal discipline to avoid further share declines.

Oracle’s rebuttal of Bloomberg’s report on OpenAI’s delayed data-center work eased near-term execution risks, bolstering sentiment. Additionally, new healthcare contracts—including Mt. San Rafael Hospital’s adoption of Oracle Health—provided tangible revenue momentum. These developments offset broader market anxieties around AI infrastructure spending and rising competition, such as Databricks’ $134B valuation, which highlighted the fast-evolving cloud landscape.

Investor sentiment remains cautiously optimistic, with buy-the-dip narratives gaining traction as analysts argue the recent selloff may have overcorrected Oracle’s cloud growth fundamentals. However, macro-level concerns—such as funding plans and capital allocation clarity—continue to weigh on long-term positioning. The stock’s near-term trajectory will likely hinge on further guidance around OpenAI partnerships, customer wins, and analyst revisions to valuation targets.