Oracle chip rental losses described as 'off base,' report says

[Oracle Corporation]
Mesut Dogan

* The supposed difficulties that Oracle (NYSE:ORCL [https://seekingalpha.com/symbol/ORCL]) may be having generative revenue from renting Nvidia's (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) GPUs are “off base,” Fox Business reported.
* Earlier on Tuesday, The Information cited internal documents from the IT giant that showed its fast-growing cloud business has thin gross profit margins in the past year or so, lower than what many equity analysts have forecast. In the three months ended August, Oracle recorded about $900M in revenue from rentals of servers powered by Nvidia chips and saw a gross profit of $125M — equal to 14 cents for every $1 of sales, the report noted, citing the documents.
* Oracle shares fell 2.4% in late trading on Tuesday, though off their worst levels of the session.
* Oracle has not yet responded to multiple requests for comment from Seeking Alpha.

MORE ON ORACLE, NVIDIA

* Oracle: Not So Little Now Compared To The Juggernauts [https://seekingalpha.com/article/4828345-oracle-not-so-little-now-compared-to-juggernauts]
* Nvidia: At The Front Of AI Breakthroughs [https://seekingalpha.com/article/4827991-nvidia-stock-at-the-front-of-ai-breakthrough]
* Nvidia: Market, Market Share, Margins And Multiples Part 2 [https://seekingalpha.com/article/4827684-nvidia-market-market-share-margins-and-multiples-part-2]
* Tech Voices: Bravo on AI bubble, Oracle's profits, Gerstner on chips [https://seekingalpha.com/news/4502446-tech-voices-bravo-on-ai-bubble-oracles-profits-gerstner-on-chips]
* Nvidia to continue to sponsor H-1B visas, cover costs: report [https://seekingalpha.com/news/4502437-nvidia-to-continue-to-sponsor-h-1b-visas-cover-costs-report]