Oracle Stock Slips After $7 Billion Tencent Deal Is Canceled
Yahoo Finance ·
Oracle Corporation has terminated a massive $7 billion chip leasing agreement with Tencent following regulatory concerns raised by U.S. authorities, according to reports from the Financial Times citing internal sources. Following this development, Oracle shares experienced a 2.30% decline in premarket trading. The canceled pact would have supplied 100,000 chips to the Chinese technology giant, marking its largest overseas transaction to date. This setback follows another report indicating that Nvidia Corporation instructed its cloud partners to allocate at least 51% of their services to non-Chinese entities. The news also arrives just two days after Oracle filed regulatory paperwork to secure $20 billion through a combination of note sales and a simultaneous equity offering, creating fresh uncertainty for investors tracking the tech sector.
AI 시장 분석
Oracle's stock fell 2.30% in after-hours trading after abruptly canceling a $7 billion chip lease agreement with Tencent due to concerns raised by the U.S. government. This deal was Tencent's largest-ever overseas chip lease, involving 100,000 chips. This coincides with NVIDIA's recent directive to cloud partners to maintain a service share of over 51% for non-Chinese companies, intensifying the U.S.-China tech hegemony conflict. Investors must closely monitor the negative impact of regulatory risks on earnings, alongside Oracle's large-scale fundraising plans.
하락 영향
- Cloud — Oracle's cancellation of the $7 billion Tencent chip lease agreement due to U.S. government regulations makes a hit to revenue from China-focused cloud and AI services inevitable.
DYAX 전담 분석
Oracle's withdrawal of the $7 billion Tencent chip lease agreement due to U.S. regulatory pressure has directly impacted its China-focused cloud and AI infrastructure business. This reflects the U.S. government's stance on strengthening export controls for advanced technology, acting as a brake on Oracle's overseas growth momentum.
While the contract could be pursued again if regulatory stances ease in the future, a slowdown in cloud revenue is inevitable if further regulations are tightened. Therefore, U.S.-China semiconductor and cloud regulatory trends, along with the progress of Oracle's $20 billion fundraising, must be monitored as key indicators.
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