Super Micro Computer Faces Major Stock Decline After Q3 Guidance
Super Micro Computer (NASDAQ: SMCI) experienced significant sell-offs this week. The company’s share price dropped 10.3% by the end of last week, while the S&P 500 rose by 1.4% in the same timeframe.
Following the market closure on Tuesday, Supermicro released preliminary results for the third quarter of its 2025 fiscal year, which concluded on March 31. The company issued substantial downward revisions for its performance, prompting investors to divest from the stock.
Supermicro’s Revised Fiscal Q3 Projections
Supermicro is set to report its fiscal Q3 results after trading ends on May 6. However, the company provided an earlier update indicating expected revenues between $4.5 billion and $4.6 billion. This contrasts sharply with their previous forecast of $5 billion to $6 billion. Additionally, management now anticipates non-GAAP (adjusted) earnings per share in the range of $0.29 to $0.31, which is down from the earlier guidance of $0.46 to $0.62.
Future Outlook for Supermicro
The recent guidance update has raised concerns about the demand for artificial intelligence (AI) servers. Nonetheless, the company explains that its lowered forecasts are due to customer orders being delayed. Shipments of the Nvidia Blackwell processors, essential for Supermicro’s latest servers, may have significantly affected the disappointing Q3 outlook.
Recent strong quarterly results and capital expenditure updates from Microsoft and Meta Platforms indicate that spending on AI infrastructure remains robust. This suggests that Supermicro could experience strong sales in the current quarter, following delays in Q3 orders. Investors will gain clearer insights into the company’s prospects when Supermicro publishes its fiscal Q3 results next week.
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Randi Zuckerberg, a former director of market development at Facebook and sister to Meta Platforms CEO Mark Zuckerberg, serves on The Motley Fool’s board. Keith Noonan does not hold positions in any mentioned stocks. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia.
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