Oracle's light cloud revenue causes shares to drop over 12%.

• Oracles shares fell more than 12% Tuesday.
• Oracle's Monday earnings report revealed that the company's revenue for the most recent quarter was not disclosed.
• The company's cloud business generated only minimal revenue, which was closely monitored by analysts.

On Tuesday, the company's shares dropped more than 12% after it missed revenue estimates in its fiscal second-quarter earnings report, which was released Monday evening.

The software company's adjusted earnings per share of $1.34 surpassed the LSEG (formerly Refinitiv) estimate of $1.32, while its revenue of $12.94 billion fell short of the $13.05 billion projection.

Oracle's cloud revenue fell short, according to Wall Street analysts' notes to investors.

UBS analysts wrote in a Tuesday note to investors that for the second consecutive quarter, Oracle failed to meet its growth expectations for Cloud/OCI, citing the slow pace of infrastructure capacity build-outs as the reason, which is frustrating and difficult to monitor (what is causing the delay?).

JPMorgan analysts raised doubts about the company's capacity to rapidly expand its Oracle Cloud Infrastructure.

Oracle appears to have sufficient demand for OCI at present, but there are concerns about its ability to rapidly expand its datacenter capacity, according to JPMorgan analysts.

JPMorgan stated that Oracle's "unlimited demand" for infrastructure would be restricted by its capacity limitations.

Despite the stock slide, analysts at Deutsche Bank maintain their bullish stance on Oracle and have kept their buy rating. They cite two roughly $1 billion deals announced by co-founder Larry Ellison, solid demand, and a commitment to maintaining 50%+ OCI growth for "a few years" at an increasing scale as reasons for their optimism.

Nvidia's GPUs are the chips that power much of the artificial intelligence boom, and Oracle is also a massive purchaser of both high-powered graphics processing units and central processor units from Nvidia and AMD.

The company collaborates with Microsoft and other tech giants, granting customers access to Azure, Microsoft's cloud service.

— CNBC’s Jordan Novet and Michael Bloom contributed to this report.