Super Micro Computer (SMCI) is trading 4.3% lower at $27.82, giving back some of its recent gains as investors weigh a major expansion against reports of a significant order cancellation.
- The company today announced a new 714,000-square-foot campus in San Jose to boost AI data center production, which would typically be seen as positive news.
- However, the stock appears to be under pressure from recent reports that Oracle canceled a large server rack order, with estimates of the deal's value between $1.1 and $1.4 billion.
- The negative sentiment from the canceled order appears to be outweighing the positive expansion news, alongside broader market weakness and profit-taking after an 8.71% surge on Friday.