Super Micro Computer (SMCI) Suffers as Important Users Choose Wistron for NVIDIA AI Servers During Crisis

Reports of a severe disturbance in its relationship with NVIDIA and a notable change in its customer base point to Super Micro Computer (SMCI)

Super Micro Computer (SMCI) is facing challenges as key customers opt for Wistron for NVIDIA AI servers amid the ongoing crisis.

Reports of a major strain in its relationship with NVIDIA and a significant shift in its customer base are putting Super Micro Computer (SMCI) at a critical juncture. One of SMCI's largest customers, YTL Group, is said to be turning to other suppliers after the company allegedly failed to fulfill a large order for NVIDIA's NVL72 GB200 crisps.

Initially planning to use SMCI's AI servers for a cutting-edge green AI data center in Malaysia, YTL Group has now shifted the order to Taiwan's Wistron Group. The decision comes as SMCI delays the expansion of its Malaysian factory for increasing server cabinet production.

The ongoing legal troubles faced by SMCI—including allegations of financial misconduct and a preliminary DOJ investigation—are said to be impacting the company's ability to expand further.

For SMCI, which has until November 16 to file its delayed annual report and avoid being delisted from Nasdaq, these developments add to a growing list of hurdles. The company's struggles are being felt across the tech sector as businesses navigate the road to recovery.