Peter Smith
Oracle has fired back at a recent media report questioning whether its Nvidia chip rental business makes financial sense. The company called the story inaccurate, telling Fox Business through insider sources that The Information's piece was "off base" and didn't capture the real picture. It's a reminder of just how much Oracle's stock moves on AI headlines these days.
As cloud providers race to build out AI infrastructure, Oracle has been betting big on GPU capacity. Keeping investors onboard matters, especially when you're pouring billions into data centers. So when questions pop up about profitability, the company wastes no time setting the record straight.
What Happened
According to The Future Investors on Twitter, Oracle came out strong against The Information's report. Company sources made it clear to Fox Business that the claims were misleading and didn't reflect how the business actually performs. For Oracle, this isn't just about one article. It's about protecting confidence while the company scales up AI infrastructure alongside heavyweights like Nvidia, Microsoft, Amazon, and Google. The Information has drawn criticism before for how it frames tech company economics, and Oracle clearly wasn't going to let this one slide, especially not now.
The Chart
Oracle’s stock experienced a sharp intraday drop today, falling over 2.5% to close at $284.24. After holding near the $290 level in the morning session, shares tumbled late morning, briefly touching the $270 support zone before staging a modest recovery.
Key levels now include support near $270–272, where buyers stepped in during the selloff, and resistance around $290, which the stock failed to hold. The sharp volume spike during the decline underscores how sensitive Oracle remains to headlines around AI and financial performance.
Despite the pullback, the stock managed to stabilize into the afternoon, suggesting that long-term investors are still watching the $270 zone as a critical floor. A decisive rebound above $290 could restore momentum, while another dip below $270 may trigger further short-term selling pressure.
Why This Matters
Oracle's partnership with Nvidia on cloud infrastructure isn't just a side project. It's core to where the company is headed. The "Stargate Project" is aimed at building massive AI capacity, and Oracle clearly wants to play in the same league as the hyperscalers. With AI adoption picking up speed, having GPU firepower gives cloud providers a real edge. Nvidia's dominance keeps Oracle relevant in the conversation. And maintaining investor trust is critical when you're funding expensive, long-term infrastructure bets. Pushing back on negative stories is part of that strategy.
Peter Smith
