Oracle Cancels $1B Super Micro Order, Shares Slide 6%
Oracle canceled a server order exceeding $1 billion from Super Micro over alleged illegal chip sales to China and rising AI infrastructure expenses. Shares fell 5.98% to $176.28 and Morgan Stanley cut its price target to $207, citing margin and financing risks in GPU-as-a-service growth.
1. Order Cancellation Details
Oracle halted its planned purchase of more than $1 billion in Nvidia GB300 NVL72 server racks from Super Micro, citing concerns that the co-founder engaged in illicit chip sales to China and flagging unexpectedly high costs in its AI infrastructure build-out.
2. Market Reaction
Following the announcement, Oracle shares plunged 5.98%, closing at $176.28, representing one of the steepest single-day declines in six months and wiping out roughly $11 per share in value from the prior session.
3. Analyst Outlook
Morgan Stanley reduced its price target from $213 to $207 and maintained an Equal Weight rating, while warning of unresolved questions around GPU-as-a-service cost structures, financing plans for the 10 GW capacity buildout, and the long-term margin profile of its AI compute offerings.