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Oracle faces concerns over limited benefits from rising GPU prices due to fixed-margin contracts

TIKR ·

ORCL Oracle Corp
$141.40 +4.21%
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CRWV +0.71%
  1. 1Oracle signed a large-scale AI data center contract with OpenAI approximately one year ago.
  2. 2Oracle's gross margin percentage of 65.8% for fiscal year 2026 is lower than its 79.1% in fiscal year 2022.
  3. 3CoreWeave's GPU prices have seen an additional increase of 10% since July.

So what's the key point?

Oracle is worried because GPU prices are rising after the company signed a contract to build AI centers. The profit margin has dropped to 65.8%, which could be disadvantageous for the company.

Source TIKR · View original ↗

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