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Oracle Corp. (NYSE:ORCL) shares are falling Friday after a report circulated that Microsoft is pulling back from a deal to lease AI computing power from the company. Here’s what you should know.

• Oracle stock is testing lower boundaries. Why are ORCL shares at support?

Oracle Stock Falls On Microsoft Computing Report

Oracle shares are sliding Friday on a Bloomberg report that Microsoft Corp. (NASDAQ:MSFT) is retreating from an arrangement to lease AI computing power from the company. Sources who asked not to be named told Bloomberg that Microsoft has been switching off the leased capacity over recent months, after deciding not to extend the contract.

The pullback is one piece of a broader review of cloud deals worth billions of dollars. The Oracle deal began in 2023 to power an AI-powered version of Bing, and Bloomberg could not learn its size.

The leased hardware ran on older Nvidia chips and gradually stopped matching what Microsoft needs, the sources said. Oracle disagreed with the implication. A spokesperson said customers still want its AI infrastructure, including earlier chip generations, and Oracle announced in September that renewals of four-year-old chip contracts carry prices 20% above the originals. Microsoft offered no comment.

Oracle Stock Technical Read: Downtrend Deepens

Oracle keeps sinking under its 200-day average, now $155.39 and still falling. After a $250.25 June peak, the stock fell to $114.50 in late July, climbed to $170.70 by Sept. 8, then slipped to $113.32. Trend and volume reinforce the slide. The price sits under its short- and medium-term averages, the 50-day trails the 200-day, trading is heavy and MACD reads negative.

A rebound that closes above the July low of $114.50 would wipe out the latest slide. Defending $129.25, where the 20-day line sits, would go further toward calming the downtrend.

ORCL Shares Are Slipping

ORCL Price Action: Oracle shares were down 0.43% at $114.67 at the time of publication on Friday. The stock is trading near its 52-week low of $111.66, according to Benzinga Pro.

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