Oracle stock dropped 7% after reassurances of AI infrastructure profitability. Gross profit margin for AI chips rental set to reach 30-40% by 2030. Revenue target increased to $166 billion by 2030. Analysts concerned about undisclosed capital expenditure forecasts and potential financing options. Net new revenue growth projections decelerate by 2030.

Despite stock decline, Oracle up 75% for the year. Competing in AI cloud space with tech giants like Alphabet, Amazon, and Microsoft. Company has $300 billion deal with OpenAI for US AI data center project, Stargate. Oracle’s ambitious targets face scrutiny from analysts due to potential challenges in meeting projections.

Read more at Yahoo Finance: Oracle stock tumbles as investors weigh ambitious financial targets