Oracle's $100 Million Loss from Blackwell Chips Rentals and Server Profit Margin Impact - To The Moon

Oracle's $100 Million Loss from Blackwell Chips Rentals and Server Profit Margin Impact

Oracle reported a significant loss of nearly $100 million from the rentals of Blackwell chips in the most recent quarter, causing its shares to slump by 5%. Additionally, Oracle's gross profit margin from rentals of servers powered by Nvidia chips averaged around 16% in the past year. This financial setback has raised concerns about the company's performance and future strategies, and the impact on Oracle's overall financial health and market position remains to be seen.

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  ·10-08
  $Oracle(ORCL)$ $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$ 🚨🔥💻 Oracle’s GPU Rentals Exposed: Thin Margins, Big Questions, and a $1 Trillion AI Bet 💻🔥🚨 I’m watching $ORCL sink fast, down more than 7% intraday, after The Information dropped a bombshell report on Oracle’s AI cloud margins. Oracle generated $900M in Nvidia-powered cloud revenue but earned only $125M in gross profit. Some GPU rentals were reportedly loss-making. This isn’t just a dip; it’s a sharp repricing of how the market views Oracle’s role in the AI infrastructure boom. 📉 Market Reaction Oracle shares cratered from $291.59 to $274.89 (-5.72%) in a matter of hours after the report. Intraday price
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  ·10-08
  $Oracle(ORCL)$ $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$ 🚨🔥💻 Oracle’s GPU Rentals Exposed: Thin Margins, Big Questions, and a $1 Trillion AI Bet 💻🔥🚨 I’m watching $ORCL sink fast, down more than 7% intraday, after The Information dropped a bombshell report on Oracle’s AI cloud margins. Oracle generated $900M in Nvidia-powered cloud revenue but earned only $125M in gross profit. Some GPU rentals were reportedly loss-making. This isn’t just a dip; it’s a sharp repricing of how the market views Oracle’s role in the AI infrastructure boom. 📉 Market Reaction Oracle shares cratered from $291.59 to $274.89 (-5.72%) in a matter of hours after the report. Intraday price
  1.52K 7
  12
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  Report

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Intraday price","images":[{"img":"https://community-static.tradeup.com/news/90ca27142576567f2ae1a9d8fc15444e","width":"1472","height":"828"},{"img":"https://community-static.tradeup.com/news/7fc39fd0483d8ed906e790ed26795361","width":"2752","height":"1748"},{"img":"https://community-static.tradeup.com/news/a86879a1d2280d3a8fb7bd73d0958815","width":"1472","height":"2510"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":12,"commentSize":7,"repostSize":15,"link":"https://ttm.financial/post/486703099330936","isVote":1,"tweetType":1,"viewCount":1523,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4172287591330932","authorId":"4172287591330932","name":"Hen Solo","avatar":"https://community-static.tradeup.com/news/e8f9d57b757c07c87986ef8a0be25085","crmLevel":11,"crmLevelSwitch":0,"idStr":"4172287591330932","authorIdStr":"4172287591330932"},"content":"🧠I find the 16% gross margin on GPU rentals fascinating. It’s not a lack of demand, it’s the economics. 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