Oracle shares surged 4.95% driven by Goldman Sachs upgrade to Buy from Neutral with 240 price target

Oracle shares surged 4.95% in pre-market trading on January 12, 2026, driven by a strategic upgrade from Goldman Sachs, which raised its rating to Buy from Neutral and set a $240 price target, signaling a potential 27% upside.

The upgrade highlights Oracle’s competitive edge in AI compute workloads and its ambition to capture 25% of new cloud revenue within three years. Analysts also noted the company’s progress in expanding its Abilene data center, with revenue growth expected as operations scale. However, risks remain, including near-term margin pressures and debt management challenges, as Oracle navigates its data center construction phase.

Recent developments include regulatory approval for a 1.4-gigawatt data center in Michigan, reinforcing Oracle’s infrastructure expansion. While UBS trimmed its price target to $280 due to market volatility, Jefferies maintained a bullish stance with a $400 target, underscoring divergent views on the stock’s trajectory amid evolving AI and cloud dynamics.

Investors are closely watching Oracle’s upcoming earnings release, which could provide further insight into the company's progress and financial health in the current expansion phase.