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Goldman Sachs Slashes PT on Oracle Corporation (ORCL) to $220 From $320

Oracle Corporation (NYSE:ORCL) is one of the most profitable NYSE stocks to buy right now. Goldman Sachs analyst Kash Rangan slashed the price target on Oracle Corporation (NYSE:ORCL) to $220 from $320 on December 12 and maintained a Neutral rating. The analyst told investors that Oracle Corporation (NYSE:ORCL) exhibited modest revenue and cloud-growth shortfalls in fiscal Q2 2026 results, along with free cash flow burn and sharply higher capex. These trends aggravate concerns regarding tenant concentration, financing needs, and valuation.

Rangan added that while management reiterated the fiscal year 2026 guidance and addressed balance sheet-related concerns, the stock’s decline points to a large capex rise with the absence of near-term revenue uplift, softer cloud momentum, uncertainty regarding the sustainability of OCI’s bring-your-own-chips and leasing mix, and concerns associated with OpenAI’s commitments.

Oracle Corporation (NYSE:ORCL) announced its fiscal Q2 2026 results on December 10, reporting that total quarterly revenues for the quarter rose 14% in USD and 13% in contant currency to $16.1 billion. Cloud revenues experienced a 34% growth in USD and 33% in constant currency to  $8.0 billion, but software revenues dropped 3% in USD and 5% in constant currency to $5.9 billion.

Management further reported that the total remaining performance obligations (RPO) rose 438% year-over-year in USD to $523 billion, supported by new commitments from Meta, NVIDIA, and others.

GAAP earnings per share for the quarter rose 91% to $2.10, while non-GAAP earnings per share was up 54% to $2.26. Oracle Corporation (NYSE:ORCL) stated that its GAAP and non-GAAP earnings per share were both positively affected by a $2.7 billion pre-tax gain in the sale of the company’s interest in its Ampere chip company.

Oracle Corporation (NYSE:ORCL) provides products and services addressing aspects of corporate IT environments, including applications and infrastructure technologies. The company’s operations are divided into the following business segments: Cloud and License, Hardware, and Services.

While we acknowledge the potential of ORCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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