Oracle shares surged 6.63% driven by strategic developments and analyst commentary.

Oracle shares surged 6.63% in pre-market trading on December 22, 2025, signaling a potential reversal amid recent volatility in the AI sector.

The upward momentum followed a mix of strategic developments and analyst commentary. Jim Cramer highlighted Oracle’s pivotal role in the AI ecosystem, emphasizing the company’s need for disciplined capital raising to sustain growth. This echoed earlier concerns about Oracle’s high capital expenditures and negative free cash flow, which had drawn criticism from analysts like RBC Capital, which recently cut its price target to $250.

Positive catalysts included Oracle’s pushback against a Bloomberg report suggesting delays in OpenAI’s data-center projects, which alleviated near-term execution risks. New healthcare contracts, such as Mt. San Rafael Hospital adopting Oracle Health, further reinforced confidence in the company’s enterprise software and cloud services.

However, challenges persist. Goldman Sachs slashed its price target to $220, reflecting broader skepticism about Oracle’s AI infrastructure spending and debt management. Meanwhile, industry-wide jitters over rapid hardware depreciation and intensifying competition—exemplified by Databricks’ $134B valuation—highlight the risks of Oracle’s aggressive capital allocation strategy.

Investors are now closely watching Oracle’s upcoming disclosures on OpenAI timelines, capex plans, and analyst revisions to gauge the sustainability of its recent rebound.