CMB Stock News Of The Day 📰📰🗞️🗞️🗞️📈📉

“Oracle’s $100 Million AI Setback Sends Shockwaves Across Tech Stocks” 🚨🚨🚨

Oracle’s bold bet on Nvidia’s cutting-edge Blackwell chips hasn’t paid off—at least not yet. According to a report from The Information, Oracle lost nearly $100 million in the three months ending August from renting out access to Nvidia’s highly sought-after AI chips.

The losses stem largely from timing issues, as Oracle scrambles to get its data centers fully equipped before customers start paying for the new AI-powered services. But the market didn’t wait. Oracle shares tumbled over 5%, while Nvidia, which had been up nearly 2% earlier in the day, turned negative as traders reacted to the disappointing news.

The ripple effect spread across the broader AI and data infrastructure sectors. Cloud competitors like Nebius (–6.7%) and CoreWeave (–4.6%), storage giants Western Digital (–5.6%) and Seagate (–7.8%), and data center operators IREN (–2.4%) and Cipher Mining (–5.5%) all fell sharply. Even Oklo, a nuclear energy startup tied to AI infrastructure growth, dropped over 5%.

Internal documents reveal that Oracle’s cloud business—though expanding rapidly—has been running on razor-thin margins, earning just $125 million in gross profit on Nvidia-powered server rentals, a slim 14% margin.

The incident underscores how the AI gold rush isn’t immune to growing pains, even for tech giants betting big on next-gen hardware.