Reports of a severe disturbance in its relationship with NVIDIA and a notable change in its customer base point to Super Micro Computer (SMCI) at a turning point. One of SMCI’s biggest consumers, YTL Group, has apparently sought for other suppliers after the company allegedly failed to meet a sizable demand for NVIDIA’s NVL72 GB200 crisps.

Originally intending to employ SMCI’s AI servers for a state-of- the-art green AI data center in Malaysia, YTL Group has now shifted its order to Wistron Group of Taiwan. This choice results from SMCI postponing the expansion of its Malaysian plant meant to increase server cabinet manufacturing. Further effects of SMCI’s continuous legal issues—including claims of financial misbehavior and a preliminary DOJ investigation—are a halt in expansion.

For SMCI, which has until November 16 to submit its late annual report and prevent Nasdaq delisting, these events add to an already mounting list of difficulties. These losses are being felt throughout the tech sector as the business works to find stability.