Market reaction
Shares of Super Micro Computer (NASDAQ:SMCI) declined roughly 10% Thursday following research reports that Oracle (NYSE:ORCL) cancelled a large rack order for Nvidia (NASDAQ:NVDA) GB300 NVL72 systems. The research quantified the cancellation at 300 to 400 racks, with each rack valued at about $3.5 million, implying a total contract reduction in the range of $1.1 billion to $1.4 billion.
Shipments and contract details
The research noted Super Micro had already shipped between 100 and 200 racks before Oracle's cancellation. Industry contacts cited in the research indicated the Oracle cancellation is tied to an unrelated criminal indictment of Super Micro's co-founder for allegedly smuggling AI GPUs into China. The report said Wiwynn is believed to have taken on the rack business that Oracle removed from Super Micro.
xAI relationship and product timing
According to the research, Super Micro's xAI-related revenue has decelerated after the company completed GB300 rack shipments for the Colossus 2 data center earlier this year. The study added that the Rubin product introduction is still several months away. It also reported that Super Micro won GB300 NVL72 rack awards from xAI in the second half of 2025 but has struggled to clear older B200 inventory.
Inventory concerns and product mix shift
The report raised concerns about substantial B200 GPU inventory at Super Micro. Supply chain sources described those inventory levels as "considerable." The B200 units were originally built for xAI HGX AI Server shipments, but xAI demand shifted toward GB200 NVL72 systems when rack shipments accelerated in mid-2025. Those GB200 rack awards went to Dell (NYSE:DELL) and HP Enterprise (NYSE:HPE), the research said.
Operational implications
Per the research, Super Micro's inability so far to move the older B200 inventory persists despite later awards of GB300 NVL72 racks by xAI in the second half of 2025. The research links this inventory build and the contract cancellation to slower xAI shipments and to shifting rack suppliers in the market.
What the report conveyed
- Oracle cancellation estimated at 300-400 racks, ~ $3.5 million per rack, total $1.1 billion to $1.4 billion.
- Super Micro previously shipped 100-200 racks tied to that business before cancellation.
- Supply chain sources called B200 GPU inventory "considerable" and noted demand shifted to GB200 NVL72 racks awarded to Dell and HPE.
- Wiwynn is believed to have picked up the rack business Oracle cancelled from Super Micro.
Information in this article is based on the research findings and industry sources described in that research. The article reports the figures and assertions as presented in the cited research and does not add additional facts or context beyond those statements.