A U.S. ban of TikTok might hurt Oracle‘s business, the software company acknowledged in its annual report on Monday.

In April, President Joe Biden signed a bill demanding that China’s ByteDance sell TikTok in nine months, or one year if an extension is approved, if the short-video company wants to avoid a ban in the U.S. TikTok’s ownership structure has long been a source of tension in the U.S. due to concerns about user data making its way to China.

Oracle provides cloud infrastructure for TikTok, which has over 150 million users in the U.S.

“If we are unable to provide those services to TikTok, and if we cannot redeploy that capacity in a timely manner, our revenues and profits would be adversely impacted,” Oracle said in its annual report for the fiscal year ended May 31.

Concern over TikTok and its Chinese ownership dates back to 2020, when Donald Trump, who was then president, pushed for a sale or divestiture of the U.S. assets. That pressure prompted deal talks with Microsoft. Weeks later, Oracle announced that it was part of ByteDance’s proposal to the U.S. Treasury Department to provide cloud services that could help TikTok remain available in the U.S.

TikTok moved forward with an initiative called Project Texas, designed to keep TikTok services for U.S. users running on Oracle cloud infrastructure located inside the country. TikTok said Oracle would also be responsible for compiling the app and delivering it to third-party app stores.

“The one thing I can tell you is we have an excellent relationship with the folks at TikTok,” Oracle CEO Safra Catz said on a 2022 conference call with analysts.

Following the bipartisan legislation this year targeted at TikTok, and Biden’s signing of the bill mandating its sale, TikTok filed a lawsuit arguing that the law violates First Amendment free speech protections.

Real estate investor Frank McCourt and former Treasury Secretary Steven Mnuchin have expressed interest in buying TikTok, but no deal has materialized.

Oracle hasn’t disclosed details of its financial ties to TikTok. Evercore analysts estimated in April that if TikTok is generating sales of $16 billion in the U.S. annually, it could be spending 3% to 5% as a percentage of revenue on cloud infrastructure, which would work out to $480 million to $800 million. Oracle’s cloud infrastructure revenue for the fiscal year came to $6.9 billion.

TikTok didn’t immediately respond to a request for comment.

WATCH: Investors want to see a sale of TikTok, says Carnegie’s Peter Harrell

Since briefly becoming the world’s most valuable company last week, Nvidia has dropped for three consecutive trading days and is now down 13% from its peak.

Monday’s slide was the chipmaker’s second-steepest drop of the year, as the stock fell 6.7% to $118.11. Nvidia’s decline brought with it a slide in chipmakers and other tech companies that have been tied to the artificial intelligence boom.

Super Micro Computer, which sells servers packed with Nvidia’s AI chips, slid 8.7 percent, and Dell, which competes in that market, fell 5.2%.

Chip designer Arm dropped 5.8%, while semiconductor giants Qualcomm and Broadcom dropped 5.5% and 3.7%, respectively.

Many of those companies have been some of the biggest gainers in the last couple years as investors bet heavily that they’ll be the prime beneficiaries of a wave of AI spending.

Nvidia’s value has nearly tripled in the past year even after the three-day slump. Last week, it topped Apple and Microsoft as the most valuable U.S. company with a market capitalization over $3 trillion before giving up some of those gains. Nvidia was the fourth-biggest loser in the S&P 500 on Monday. Super Micro is still up almost 200% in 2024.

Investors may be taking an opportunity to lock in gains after a few hot months.

“I don’t think the party is over, but it’s had a heck of a run and there are so many other places in technology that offer better attractive risk/reward,” Hightower’s Stephanie Link told CNBC on Friday, calling Nvidia shares “overloved.”

Nvidia says demand for its prized AI graphics processing units (GPUs) remains high, as companies including Microsoft, Google, Amazon, Oracle, and Meta buy billions of dollars worth of the chips to power their data centers and cloud services.

Later this year, Nvidia will start shipping its next-generation AI chips, called Blackwell, that some analysts say could kick off another cycle with significant growth for the chipmaker and its partners.

Nvidia’s performance “is going to continue for the next 18-24 months,” Constellation Research founder Ray Wang said on CNBC’s Squawk Box on Monday. “I think it’s a good time to buy the dip.”

WATCH: Nvidia will continue to have corrections but investors should stick with it