Nvidia's Chip Shortage May Be Real: Oracle's Utilization Rate Hits 97.9%

Oracle's AI hardware utilization has reached an astonishing 97.9%, indicating that nearly every chip is busy serving customers. This figure is particularly significant for Nvidia, as Oracle uses hundreds of thousands of Nvidia GPUs in its biggest AI deployments.

The 850 megawatts of artificial intelligence capacity delivered by Oracle to its customers in the first quarter of fiscal 2027 represents a nearly threefold increase from the prior quarter's total. This capacity includes over 300,000 graphics processing units (GPUs), with Nvidia supplying most of them.

Nvidia's revenue rose 106% year-over-year to $96.2 billion in its second fiscal quarter of 2027, with data center revenue accounting for $89 billion. The company's chief financial officer, Colette Kress, predicted a 70% revenue growth in fiscal 2028, citing manufacturing capacity as the limiting factor.