Shares of Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) and Gorilla Technology Group (NASDAQ:GRRR) are both selling off hard in midday trading on Wednesday, June 3. SMCI stock is down 9% to $45.80, while GRRR stock has tumbled 20% to $17.45.
The catalyst is, ironically, a positive one. Super Micro Computer and Gorilla Technology announced a roughly $2 billion AI infrastructure deal aimed at expanding operations in India, with potential follow-on projects to come. Yet, the market is focused on something else entirely: how a deal this large gets financed.
That tension between bullish strategic news and bearish financing math is the entire story at midday for SMCI stock and GRRR stock. Both names had run parabolic into the announcement, and the reaction looks textbook sell the news.
Why a $2 billion Deal Is Sparking a Selloff
The bearish consideration is dilution risk. On Gorilla Technology’s Q1 2026 earnings call held May 27, management emphasized using “project-level financing to avoid shareholder dilution” for its AI infrastructure buildout. Investors appear skeptical that approach can scale to a $2 billion commitment for a company with a market cap of roughly $602 million. Details on the deal structure may emerge in subsequent SEC filings from Gorilla Technology.
The math is the issue. A deal of this size is enormous relative to Gorilla Technology’s balance sheet, and that’s precisely why the financing question is hitting GRRR stock harder than SMCI stock today. The smaller-cap partner carries more of the perceived equity-issuance risk.
However, the underlying business momentum is real. Gorilla Technology posted Q1 2026 revenue of roughly $28.2 million, growth of 55% year over year, and positive operating cash flow of roughly $6.6 million. The company raised full-year 2026 revenue guidance to roughly $160 million to $200 million.
Parabolic Runs Set the Stage for a Pullback
The context matters here. Heading into Wednesday, SMCI stock was up roughly 71% year-to-date. Meanwhile, GRRR stock had nearly doubled in 2026, up roughly 99% year-to-date.
On the other hand, those runs left both SMCI stock and GRRR stock extended on the charts. Sharp pullbacks after parabolic moves are common, even when the catalyst news is structurally positive.
Gorilla Technology’s Q1 results also carried noise that some institutional buyers were already eyeing carefully. The company reported an operating loss of roughly $41.1 million, attributing over 97% of that loss to stock-based compensation and foreign exchange losses, with an underlying operational loss of only about $1.2 million excluding those items.
Super Micro Computer Gets Caught in the Crosswinds
For Super Micro Computer, the Gorilla deal is a fresh revenue opportunity tied to India AI infrastructure demand. Super Micro Computer CEO Charles Liang has framed the company as “well-positioned to meet the massive demand for various AI and enterprise verticals,” and Super Micro Computer’s most recent quarter showed revenue of $10.24 billion.
However, Super Micro Computer carries its own volatility history, including past accounting-related scrutiny in 2024 and 2025. That history tends to amplify reactions in either direction when major news hits SMCI stock.
Retail sentiment, meanwhile, remains stretched on the other side. Reddit chatter around GRRR stock stayed “very bullish” through the decline, with one widely circulated WallStreetBets post titled “GRRR – entire lifesavings YOLO” driving the conversation. That disconnect between retail conviction and institutional selling is worth flagging.
What to Watch Next
The next catalyst is information, specifically the financing structure behind the announced deal. Any detail on whether Gorilla Technology can deliver project-level financing without an equity raise could quickly change the tone on GRRR stock.
Investors can monitor execution milestones on Gorilla Technology’s 200MW Korat, Thailand data center campus and its India AI projects, alongside any guidance updates from Super Micro Computer. Given the parabolic moves into today and the genuine financing questions, investors may want to size their positions cautiously and manage their risk on both names while the dust settles.
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