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 risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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