By Ghazal Ahmed
Publication Date: 2026-01-15 20:14:00
Oracle Corporation (NYSE:ORCL) is one of the AI stocks to watch on Wall Street. On January 12, Goldman Sachs analyst Gabriela Borges assumed coverage on the stock with a “Buy” rating and a set price target of $240. Business analysts are bullish on Oracle’s computing advantage and expect gross profit to increase.
Borges noted that the company is positive about Oracle’s technology advantage in AI computing workloads and its potential to increase the share of new cloud revenue from less than 10% today to an estimated 25% within three years.
Analysts wonder when Oracle’s heavy spending will translate into profits and expect improved visibility over the next 12 months. In particular, they expect revenue to increase again this year as additional phases of the 1.2 GW data center in Abilene come online.
Additionally, gross profit is likely to have bottomed out before any significant acceleration occurs. The company also believes that Oracle is nearing the peak of its debt-taking, noting that…
