By StockStory
Publication Date: 2026-04-23 16:42:00
What happened?
Shares of enterprise software giant Oracle (NYSE:ORCL) fell 4.5% in the afternoon session after reports emerged that the company canceled a significant order for server racks from major supplier Super Micro Computer, raising concerns about its artificial intelligence (AI) strategy.
Oracle has canceled an order for 300 to 400 server racks, a deal estimated to be worth between $1.05 billion and $1.4 billion, according to a research note from Bluefin Research. This news appeared to reinforce investors’ existing uncertainty about the high costs and profitability of Oracle’s large investment in AI infrastructure. Analysts at Morgan Stanley recently cut their price target on Oracle, citing questions about the cost and margin profile of the company’s expanding GPU-as-a-service business. The move comes amid broader market caution over Oracle’s significant capital expenditures, a class action lawsuit accusing the company of misleading investors about its AI strategy, and…
