Super Micro Computer shares fell 12% Thursday after reports emerged that the company lost a significant contract with Oracle for Nvidia GB300 NVL72 racks.

According to Bluefin research, Oracle canceled 300-400 racks from Super Micro Computer, with each rack valued at approximately $3.5 million, representing a total contract loss of $1.1 billion to $1.4 billion. The firm estimates that Super Micro Computer had shipped 100 to 200 racks before the cancellation.

Industry sources cited by Bluefin indicated the Oracle cancellation is believed to be related to the indictment of the Super Micro Computer co-founder for smuggling AI GPUs into China. Wiwynn is believed to have picked up the rack business, according to the research.

Bluefin also noted that Super Micro Computer’s xAI business has slowed after completing GB300 rack shipments for the Colossus 2 data center earlier this year, while the Rubin introduction remains several months away.

The firm raised additional concerns about excess B200 GPU inventory at Super Micro Computer. Supply chain sources described the inventory levels as "considerable," according to Bluefin. The company had built up B200 inventory intended for xAI HGX AI Server shipments, but xAI demand shifted to GB200 NVL72 when rack shipments accelerated in mid-2025. Those racks were awarded to Dell and HP Enterprise.

Super Micro Computer was later awarded GB300 NVL72 racks by xAI in the second half of 2025, but has not been able to move the older B200 inventory, according to Bluefin research.