Super Micro Computer (SMCI) is trading down -6.00% at $27.43 following reports that the company has lost a significant contract with Oracle. The stock was down as much as 12% at one point during the day.
- According to research notes, Oracle reportedly canceled an order for 300-400 server racks, representing a potential contract loss of $1.1 billion to $1.4 billion.
- The contract cancellation is believed to be linked to the recent federal indictment of an SMCI co-founder over alleged chip smuggling.
- The company is also facing a securities class-action lawsuit related to allegedly concealing illegal sales to China.