Super Micro Shares Plunge 10% as Oracle Cancels $1.1B–$1.4B Rack Order
Super Micro shares plunged about 10% after Oracle canceled a 300–400 GB300 NVL72 rack order valued at $1.1–1.4 billion, carrying excess B200 GPU inventory risk. The company reported Q2 revenue of $12.68 billion with $0.69 EPS and raised full-year revenue guidance to $40 billion despite margins halving to 6%.
1. Oracle Order Cancellation and Market Reaction
Super Micro lost a vital Oracle contract when the customer canceled an order for 300–400 Nvidia GB300 NVL72 server racks, representing $1.1–1.4 billion of potential sales. The stock tumbled about 10% on the news, reflecting investor concern over near-term revenue disruption.
2. Inventory and Production Challenges
The cancellation left Super Micro holding excess B200 GPU inventory originally built for earlier xAI deployments, raising write-down and obsolescence risks. Meanwhile, xAI-related demand has slowed after completing Colossus 2 shipments and the Rubin platform is still months from launch, creating a sales gap.
3. Financial Results and Full-Year Outlook
In fiscal Q2, Super Micro posted revenue of $12.68 billion and $0.69 EPS, beating prior-period figures despite a gross margin decline to 6% from 12%. Management raised full-year revenue guidance to at least $40 billion, citing continued AI demand but acknowledging margin pressure.