Oracle's AI Data Centers Ran at Full Tilt, a Signal Nvidia's Chips Remain in Short Supply - finance.biggo.com

Oracle's recent disclosure that its fleet of over 300,000 GPUs operated at 97.9% utilization during the quarter ending August 31 offers compelling evidence of a global shortage of NVIDIA's AI chips. W... Read original →

Oracle's reported 97.9% GPU utilization underscores a structural shortage in NVIDIA's AI chip supply chain. Technologically, constrained production of Hopper and Blackwell GPUs limits AI inference and training capacity, pushing enterprises to resell older models at 20% premiums, defying typical pricing trends. From a compliance standpoint, tightened export controls on Taiwan/ China and Hong Kong, China semiconductor equipment heighten supply chain risks, especially for EUV-dependent fabs. In competitive dynamics, OpenAI and others may accelerate in-house chip development to reduce reliance on NVIDIA. Over the next 12–24 months, sustained demand growth will pressure NVIDIA’s production capacity, risking customer attrition and valuation correction, while global data center investments may shift toward diversified chip architectures.