News that Microsoft is winding down its multi-year agreement to rent AI cloud capacity from Oracle Cloud Infrastructure (OCI) has renewed selling pressure on Oracle stock
Written by:
Olumide Adesina
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Tuesday, November 10, 2026
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2 min read
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Last updated: Tuesday, November 10, 2026
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Quick overview
Microsoft is ending its agreement to rent AI cloud capacity from Oracle, leading to a significant drop in Oracle’s stock price.Oracle’s stock fell over 5% to an intraday low of around $109, with concerns that breaking below $100 could trigger further selling.The decline is attributed to the aging AI hardware that no longer meets Microsoft’s performance standards, prompting a review of cloud contracts.Despite the challenges, Oracle’s core business remains resilient, and there is still strong demand for its AI infrastructure from startups.
News that Microsoft is winding down its multi-year agreement to rent AI cloud capacity from Oracle Cloud Infrastructure (OCI) has renewed selling pressure on Oracle stock ( ORCL), but breaking below $100 depends on several fundamental and technical factors.
ORCL fell over 5% to an intraday low around $109 before recovering slightly to close near $116. ORCL is down sharply from its peak. Breaking major psychological support at $110 could trigger algorithmic selling toward the double-digit mark ($95–$100 zone).
Microsoft declined to renew a 2023 contract to lease OCI servers for AI-powered Bing workloads. Reasoning: The leased hardware relied on older-generation Nvidia GPU clusters that no longer meet Microsoft’s evolving AI performance standards.
Microsoft is reviewing over $80 billion in third-party cloud infrastructure contracts across external providers (including CoreWeave, Nscale, and Nebius) to curtail rising costs and build out in-house Azure infrastructure. ORCL fell over 5% to an intraday low around $109 before recovering slightly to close near $116.
Key Factors: Could ORCL Fall Below $100?
Depreciation of Older AI Hardware: Analysts at Gartner and Wall Street researchers warn that enterprise AI spending pivots rapidly to newer chip architecture. If Oracle struggles to re-lease older GPU clusters to replacement customers, it faces potential margin contraction or capacity write-downs. Loss of high-profile enterprise customers like Microsoft creates uncertainty around Oracle’s broader AI infrastructure narrative, which fueled much of its previous rally.
2. The Bullish/Support Case (Holding Above $100)
High Infrastructure Demand: Oracle maintained that overall demand for its AI infrastructure remains robust. Neocloud demand from startups and alternative enterprises could step in to absorb the freed-up capacity. Core Business Resilience: Oracle’s core SaaS enterprise software (Fusion ERP, NetSuite) and traditional database revenues provide a steady earnings baseline independent of volatile AI hardware leasing contracts. Valuation & Support Floor: The immediate rebound off the $109 low shows that buyers are stepping in near major multi-month technical support lines.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 20 years of working experience in investment trading