Oracle Stock Plummets $40B Amid AI Margin Concerns

[etfs]

Oracle Corp saw its stock price plunge dramatically, wiping out around $40 billion in market value after a report highlighted razor-thin profit margins on its AI cloud services.

The company reportedly earns only 14 cents per $1 in Nvidia server rentals, and in the last quarter, it lost $100 million renting Blackwell chips — a key component of its AI business.

Investors are now questioning the viability and profitability of AI infrastructure, sending shockwaves across tech markets.

[Nahid10]

$40B wiped out is massive, even for Oracle. Shows how sensitive investors are to profit warnings in this AI-fueled market.

[EmTeam]

Margins shrinking this early in the AI race says a lot. Companies need sustainable models, not just hype-driven expansion.