TD Cowen analyst Michael Elias wrote on October 20, 2026 that Nvidia may be giving Oracle credit support, such as lease guarantees or subleases, to help it secure lender funding for AI data centers. Neither company has confirmed this, and the size of any support is unknown. The view is linked to a reported five-year deal in which Tencent would lease about 100,000 advanced AI chips in Oracle data centers in Southeast Asia, estimated at about $7 billion with roughly 30% paid upfront, though that deal is also unconfirmed. The report points to Oracle's cash strain: its capex of $28.5 billion exceeded revenue of $19.3 billion, free cash flow was negative $5.4 billion, and it sold $20 billion of stock during the quarter. S&P cut Oracle to BBB-, its lowest investment-grade rating, in July, and any further downgrade would push its debt into junk territory.
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NVDAOracledata centersdefault risk
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Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.48 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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