Super Micro Computer Inc. (NASDAQ:SMCI) shares cratered during Thursday’s session. The sell-off follows reports that Oracle Corp. (NYSE:ORCL) reportedly canceled a massive server contract.
• Super Micro Computer stock is feeling bearish pressure. What’s behind SMCI decline?
Oracle Cuts Billion-Dollar Deal
According to Bluefin Research, Oracle canceled an order for 300 to 400 NVIDIA Corp. (NASDAQ:NVDA) GB300 NVL72 racks. Each rack carries a $3.5 million price tag, reported Investing.com. This represents a total contract loss between $1.1 billion and $1.4 billion. Bluefin estimates SMCI shipped only 100 to 200 racks before the termination.
Legal Allegations Drive Shift
Bluefin research indicates the cancellation stems from serious legal headwinds. Sources cite the indictment of an SMCI co-founder for smuggling artificial intelligence Graphics Processing Unit (GPU) into China. Reportedly, …
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