Oracle Shares Hit Low on Reported Microsoft AI Contract Exit

By Sophie Lindqvist

Oracle shares hit a 52-week low of $109.21 on November 6, 2026, after reports that Microsoft had wound down an Oracle contract for rented AI computing capacity. Microsoft declined to comment, and people familiar with the matter did not specify the Nvidia chip generation.

What did Microsoft end?

Those people said Microsoft declined to renew the agreement and spent recent months switching the capacity off. They said Oracle’s hardware used older Nvidia chips that no longer met Microsoft’s specifications.

The 2023 deal gave Microsoft server access for the then-new AI version of Bing, but neither its full size nor its monetary value was ever determined or disclosed. At the time, renting computing power from a rival appeared to be an early sign of an AI chip shortage. Microsoft has given no reason of its own for letting the contract lapse.

Oracle’s low was about 5.2% below the November 5 close of $115.16. The stock reversed to close at $116.01, up 0.74%, leaving its market value at $361.69 billion.

Microsoft fell 0.99% to $530.61, with no separate cause reported. For a company worth $3.94 trillion, 24/7 Wall St. described the early-Bing rental contract as a small line item.

Can Oracle rerent the old capacity?

An Oracle spokesperson said demand for its AI infrastructure remained strong, including for earlier-generation GPUs.

In September, Oracle said GPUs coming up for renewal were renewed or rented to new customers at a 20% premium, adding: “The majority of those GPUs are 4 years or older.”

Oracle reported GPU-fleet utilization of 97.9% for that quarter. The figure covered the fleet, not specifically the capacity being returned by Microsoft.

If Oracle can rerent Microsoft’s returning capacity at similar prices, losing the contract costs little, although no revenue figure for the Microsoft agreement was ever disclosed.

Oracle’s cloud business generated $18 billion in the year ended May 2026. Most of that growth came from OpenAI and other large AI contracts, which were far larger than the Bing agreement.

Who now holds the pricing power?

Microsoft spent $45.2 billion on capital expenditures in its September quarter, and Nvidia GB300 systems now form most of its GPU fleet. No unit count accompanied that deployment claim.

Microsoft has also committed more than $80 billion to renting capacity from other cloud providers, including CoreWeave and Nebius. Frustrated by costs and delays, it plans to reduce that supplier list to a few key companies. All of that rented capacity still requires power, cooling and networking.

CoreWeave said 62% of its 2024 revenue came from Microsoft. Yet on November 6, CoreWeave rose 6.14% and Nebius gained 7.58%.

For Microsoft, the shortage behind the Bing agreement has eased. That gives the buyer more influence over rental prices than the companies supplying scarce computing capacity.

Microsoft also generated $18.6 billion in free cash flow, while Azure revenue grew 48% in the last quarter. Those figures explain why Microsoft carries less cash-flow risk than Oracle when each evaluates another large capacity agreement.

How much downside is already priced in?

Oracle fell 6.93% on November 5, the same day the Philadelphia Semiconductor Index dropped 12%. That was the index’s steepest decline since March 2020. Oracle has since lost more than half its value from its June 1 high of $248.15.

24/7 Wall St. interpreted buyers stepping in near the low as evidence that the market had expected worse news. Oracle’s free cash flow was negative $5.396 billion in the last quarter, however, so each lost renewal now carries more weight.

Oracle forecasts at least $90 billion of fiscal 2027 revenue and non-GAAP earnings per share of $8.10. At the prevailing share price, 24/7 Wall St. judged that much of the downside was already reflected.

The next scheduled checks are:

• CoreWeave’s report on November 10.
• Nvidia’s report on November 17.
• Oracle’s next report, expected around December 9, although Oracle has not confirmed the date.

Falling utilization, an eroding renewal premium, or a close below $109.21 would undercut that assessment. If Oracle sustains 97.9% fleet use and a 20% renewal premium, it can redeploy Microsoft’s returned capacity with limited damage; if either measure weakens, the contract becomes harder to replace.