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Key Stats for SMCI Stock
- Today’s Price Change: -6%
- Current Share Price: $31
- 52-Week High: $101
- Analysts’ Price Target: $49
What Happened?
Super Micro Computer (SMCI) shares dropped approximately 6% after the server maker provided disappointing guidance for its fiscal fourth-quarter. This compounded investor concerns that emerged last week when SMCI released preliminary third-quarter results that fell short of expectations.
For the fiscal third quarter ended March 31, Super Micro reported adjusted earnings per share of $0.31, above estimates of $0.30. However, revenue of $4.6 billion fell very short of estimates of $5.05 billion.
While these figures aligned with the preliminary results announced last week (which triggered a 12% stock plunge), investors were further disappointed by its fourth-quarter guidance.
Super Micro projected fourth-quarter adjusted earnings of between $0.40 and $0.50 per share on revenue of $5.6-$6.4 billion, which were well below analyst expectations of $0.69 per share and $6.82 billion, respectively.
CEO Charles Liang attributed part of the weakness to customers delaying commitments while evaluating AI platforms like Nvidia’s current Hopper GPUs and upcoming Blackwell GPUs.
SMCI also cited macroeconomic uncertainties related to President Trump’s recent tariff announcements as a factor, with Liang declining to provide fiscal 2026 guidance due to tariff-related uncertainty.
See SMCI’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The market’s negative reaction reflects growing concerns about Super Micro’s near-term growth trajectory, despite its position in the booming AI server market.
While quarterly revenue grew 19% year-over-year, this represents a significant deceleration for a company that used to post triple-digit growth rates.
SMCI stock investors appear concerned about the timing of customer purchases as they await Nvidia’s next-generation Blackwell GPUs, creating a potential “air pocket” in demand.
The market is also processing the impact of potential tariffs on Super Micro’s heavily hardware-dependent business model.
This latest setback adds to a challenging year for Super Micro, which has faced serious corporate governance issues.
This includes a Hindenburg Research report alleging “accounting manipulation” and Ernst & Young’s resignation as the company’s auditor after raising concerns about internal controls.
While an independent special committee investigation “did not raise any substantial concerns” about management integrity, these issues have created additional uncertainty.
Despite these challenges, SMCI stock has outperformed the broader market in 2025, with shares up 9% year-to-date compared to the S&P 500’s 4% decline.
This suggests that despite the current volatility, investors remain optimistic about Super Micro’s long-term position in the AI infrastructure market.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
