Shares of Super Micro Computer and Gorilla Technology Group fell Wednesday despite the announcement of a $2 billion AI infrastructure supply deal [1], [2], [3].
The market reaction highlights the volatility of AI-sector stocks, where massive contract wins do not always prevent immediate sell-offs. This trend suggests that investors may have already priced in growth expectations or are reacting to broader market pressures.
Super Micro Computer (NASDAQ:SMCI) saw its stock decline nine percent to $45 [1]. Gorilla Technology Group (NASDAQ:GRRR) experienced a steeper drop, with shares tumbling 20 percent [1]. Both declines occurred during mid-day trading on June 3, 2026 [2].
The companies closed the agreement to provide infrastructure for India's Yotta project [1], [2], [3]. Under the terms of the supply arrangement, the project will receive more than 25,000 GPUs [3].
Analysts said the sell-off was primarily driven by profit-taking [4]. This occurs when investors sell shares to lock in gains after a rapid rally, regardless of new positive developments like the Yotta contract [4].
The contrast in market behavior was stark, as the $2 billion valuation of the deal normally serves as a catalyst for growth [2], [3]. However, the scale of the GPU delivery—exceeding 25,000 units—did not stop the downward momentum for either company on Wednesday [3].
“Super Micro Computer saw its stock decline 9% to $45”
The disconnect between a multi-billion dollar contract win and a sharp stock decline indicates a 'sell the news' phenomenon. While the Yotta project secures a significant physical footprint in India's AI landscape with 25,000+ GPUs, the financial markets are currently prioritizing short-term profit realization over long-term infrastructure expansion.
