Oracle Hits 52-Week Low as Microsoft Walks Away From Its Older Nvidia Chips

Oracle shares touched $109.21 on November 6, a fresh 52-week low, down 5.2% from the prior close of $115.16. The trigger: people familiar with the matter say Microsoft is winding down the AI computing capacity it rented from Oracle, having declined to renew the contract and spent months switching it off. Those people told the outlet that Oracle's hardware ran on older Nvidia chips that no longer cleared Microsoft's specifications. The chip generation wasn't named, and Microsoft declined to comment.

The stock didn't stay down. Oracle closed the session at $116.01, up 0.74%, for a market value of $361.69 billion — a bounce that suggests the market had already braced for bad news. Microsoft slipped 0.99% to $530.61, with no cause reported. Against a $3.94 trillion valuation, a rental contract dating back to the early Bing chatbot era is a rounding error.

That deal landed in 2023, giving Microsoft server access to run the then-new AI version of Bing. Its size and value were never disclosed. At the time, renting compute from a rival looked like a tell that AI chips were running scarce. The scarcity story has flipped: Microsoft spent $45.2 billion on capital expenditures in its September quarter, runs mostly Nvidia GB300 systems, and has committed more than $80 billion to renting capacity from other providers including CoreWeave and Nebius — a list it now plans to trim to a few key suppliers.

Oracle's spokesperson pushed back, saying demand for its AI infrastructure is holding up, early-generation GPUs included. In September the company said GPUs coming up for renewal were renewed or rented to new customers at a 20% premium, noting that most of those chips are four years or older. Utilization that quarter hit 97.9%. If Microsoft's old capacity gets re-rented at similar prices, the exit costs Oracle very little — and its cloud business pulled in $18 billion in the year ended May 2026, carried mostly by OpenAI and other big AI contracts far larger than the Bing deal.

The backdrop is rough regardless. Oracle dropped 6.93% on November 5, the same day the Philadelphia Semiconductor Index fell 12%, its steepest slide since March 2020. The stock has lost more than half its value since a June 1 high of $248.15, and free cash flow came in at -$5.396 billion last quarter, so each lost renewal stings more than it used to. Oracle still expects at least $90 billion in fiscal 2027 revenue and non-GAAP EPS of $8.10; Microsoft, for its part, grew Azure 48% last quarter and produced $18.6 billion in free cash flow.

Next up: CoreWeave reports November 10 and Nvidia on November 17. The real test is Oracle's own results, expected around December 9 — a date the company hasn't confirmed. Watch for softening utilization, a renewal premium that evaporates, or a close below $109.21.