Why Super Micro Stock Just Dropped

By Rich Smith – Apr 23, 2026 at 11:02AM ESTKey PointsBluefin Research reports Oracle is canceling a big order for Super Micro servers.xAI may also be dragging its feet on an order for servers with older Nvidia chips.Super Micro Computer (SMCI 7.30%) stock sank 7.6% through 10:30 a.m. after news broke this morning of a falling-out the company may be having with key customer Oracle (ORCL 3.99%). According to technology-focused equity research house Bluefin Research, Oracle has just canceled an order for 300 to 400 Super Micro GB300 NVL72 server racks loaded with Nvidia (NVDA 0.58%) chips. Image source: Getty Images. Super Micro's dilemma(s) Pundits suggest Oracle canceled the contract to distance itself from accusations that Super Micro co-founder Yih-Shyan "Wally" Liaw made illicit sales of Nvidia chips to China. If true, then the fact that Super Micro is losing one contract should come as no surprise -- and other contract losses may ensue. In fact, in what may be an unrelated story, Bluefin notes Super Micro is also losing sales to xAI ahead of the SpaceX IPO. (And SpaceX now owns xAI.) Is the China scandal the culprit here as well? Perhaps, but the more likely reason, says Bluefin, is that SpaceX is refusing older B200 GPU chips that Super Micro has been trying to unload, preferring to buy faster GB200 NVL72 servers from Dell (DELL +1.95%) and Hewlett Packard Enterprise (HPE 1.60%). This, too, could prove troublesome for Super Micro, if it ends up stuck with old and obsolete AI chip inventory that it can only sell at a loss -- or not sell at all. ExpandNASDAQ: SMCISuper Micro ComputerToday's Change(-7.30%) $-2.13Current Price$27.05Key Data PointsMarket Cap$17BDay's Range$26.07 - $27.6052wk Range$19.48 - $62.36Volume1.1MAvg Vol36MGross Margin8.02% Is the risk priced in? But here's the good news for Super Micro investors: After falling 18.5% in price over the past year, Super Micro no longer looks terribly expensive, costing only 21 times trailing earnings. And despite its issues, analysts still expect Super Micro to grow its earnings 26% per year over the next five years. An AI stock with a PEG ratio of less than 1.0? Sounds intriguing.Read NextApr 21, 2026 •By Rick OrfordIs Super Micro Stock Still Too Risky for Most Investors?Apr 8, 2026 •By Keith NoonanWhy Super Micro Computer Stock Crashed 29.7% in March But Is Moving Higher in AprilApr 6, 2026 •By Rick OrfordWhere Will Super Micro Computer Stock Be in 5 Years?Mar 26, 2026 •By Howard SmithStock Market Today, March 26: Super Micro Computer Falls After Shareholder Lawsuits Over Smuggling AllegationsMar 25, 2026 •By Micah ZimmermanWhy the Supermicro Smuggling Case Should Concern Every AI Investor in 2026Mar 25, 2026 •By David Jagielski, CPASuper Micro Computer Stock Sinks on Smuggling Scandal. Is the Market Overreacting?About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedSuper Micro ComputerNASDAQ: SMCI$27.10(-7.13%)-$2.08OracleNYSE: ORCL$180.02(-3.99%)-$7.48NvidiaNASDAQ: NVDA$201.41(-0.54%)-$1.09Hewlett Packard EnterpriseNYSE: HPE$28.06(-1.60%)-$0.46Dell TechnologiesNYSE: DELL$218.84(+1.95%)+$4.19*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.