Oracle Stock Drops on Weak AI Cloud Margin Report
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BTCCSquare news:
Oracle Corp. shares fell nearly 4% Tuesday afternoon after reports revealed thinner-than-expected margins in its AI cloud infrastructure business. The enterprise software giant generated approximately $900 million in revenue from Nvidia-powered server rentals last quarter, but delivered just 14% gross margins on these operations—far below its 69.66% trailing twelve-month average.
The Blackwell chip rental segment reportedly contributed nearly $100 million in losses during the period. While cloud infrastructure remains a strategic priority for Oracle, these margin pressures suggest intensifying competition in enterprise AI infrastructure provisioning—a sector increasingly relevant to blockchain networks requiring high-performance computing.
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