Overview
- Shares fell about 10% Thursday after BlueFin Research said Oracle scrapped a 300–400 rack purchase worth roughly $1.1–$1.4 billion for systems built with Nvidia chips.
- Industry sources said Oracle is shifting the work to rivals including Wiwynn, Dell Technologies, and Hewlett Packard Enterprise.
- The company faces a federal case against co‑founder Yih‑Shyan “Wally” Liaw over alleged illegal exports of restricted Nvidia processors to China, and he has pleaded not guilty.
- Investor class actions claim a $2.5 billion diversion scheme that routed restricted Nvidia GPU servers to China, with a lead plaintiff deadline of May 26.
- Despite strong Q2 revenue and a $40 billion outlook, GAAP gross margin narrowed to about 6% and researchers flagged excess older‑generation GPUs, while JPMorgan cut its price target to $28.