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Super Micro Computer (SMCI) has become one of the most controversial AI plays of 2026. Recently, Oracle (ORCL) canceled a major AI server contract worth roughly $1.1 billion to $1.4 billion with SMCI, involving hundreds of high-end AI racks, causing SMCI shares to drop more than 10% and raising concerns about the company's growth prospects.
Despite the setback with Oracle, SMCI stock quickly rebounded as the broader AI demand remains strong. So far this year, SMCI stock is down 6.3%, underperforming the Nasdaq Composite Index ($NASX) gain of 6%. Here are two red flags and one green flag to consider if you are planning to add SMCI to your portfolio.
