UBS Stays Bullish on Oracle (ORCL) Despite Target Cut, Sees 2026 Recovery Path

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks on the Market's Radar. On January 5, UBS reiterated the stock as “Buy” and lowered its price target to $280 per share from $325. The firm is cautiously optimistic on the stock as it sees recovery potential tied to OpenAI sentiment shift and Abilene capacity ramp.

The analysts noted how Oracle’s 41% share correction from mid-September highs is a reflection of deteriorating investor confidence in Oracle outlook as well as OpenAI’s prospects.

Apprehensions related to OpenAI have weighed on the entire "OpenAI complex of stocks.” This includes Oracle and other technology companies that have ties to the artificial intelligence organization.

The firm has therefore taken a step back, hitting refresh on the Oracle story. They believe that Oracle’s revenue growth should improve as its new Abilene data center capacity ramps up and OpenAI narrative begins to improve. The OpenAI sentiment reversal is seen as a positive catalyst for the first half of 2026.

“Bottom line, we reaffirm our Buy rating in light of the material pending revs growth acceleration and ramp of Abilene data center capacity, the potential that the cautious OpenAI narrative begins to reverse in 1H26 and our view that the credit/financing risks are now largely embedded in the stock.”

Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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