Oracle has reportedly canceled a chip-leasing deal with Tencent worth an estimated $7 billion after pressure from the Trump administration, according to the Financial Times. The five-year lease equals about $1.4 billion a year, around 1% of Oracle’s $664 billion backlog and small relative to the $132 billion in revenue analysts expect for fiscal 2028. Oracle has used its full $20 billion cap on new capital through fiscal 2030, while free cash flow is expected to fall to negative $37.7 billion in fiscal 2027. The author argues ByteDance could be the next target, and NVIDIA’s new rule requiring Southeast Asian cloud services to sell at least 51% of services to non-Chinese buyers could make the freed capacity harder to re-lease.
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NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/03/2026 | 206.57 |
| Change that session | +2.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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