Oracle-Tencent $7 Billion Chip Deal Reportedly Cancelled

Oracle shares fell sharply by 8.6% over the past 24 hours to 126.2 and are attempting to hold just above the 20-day simple moving average (SMA20). Claims that a $7 billion chip deal with Tencent has been canceled are undermining confidence in cloud/AI infrastructure growth expectations and could increase selling pressure in the near term. Although the RSI at 47 is in neutral territory, the MACD is negative and below its signal line; momentum is weak. As long as the price remains below the 50-day SMA (130.1), any recovery may be limited. Since the news is an unverified claim, the downside impact is expected to remain moderate.

The news includes a claim that Tencent's $7 billion chip deal with Oracle has been canceled; such a development could weaken expectations for artificial intelligence infrastructure investment. Technical indicators point to a strong 4.2% rise over the past 24 hours and RSI14 approaching the overbought threshold at 64.5, which increases the risk of short-term profit-taking. Although MACD remains positive above its signal line, weakening momentum could support a possible pullback. Since the price is above SMA20 and SMA50, the medium-term trend remains positive; however, news-driven uncertainty may create selling pressure in the short term. Nevertheless, it should be noted that the claim is unverified and the market reaction may remain limited.