SMCI: Super Micro Stock Crashes as Earnings Slide Way Below Consensus

AI server maker couldn’t meet Wall Street’s expectations and is on track to wipe out its gains for the year at the opening bell on Wednesday.

📉 Super Micro Stock Gets Slammed

• Super Micro Computer stock SMCI dropped as much as 18% in pre-market trading Wednesday after the company released preliminary earnings results that missed analyst estimates. The update threatens to wipe out all of the stock’s gains for 2025 when the market opens Wednesday.
• Revenue for the fiscal third quarter is now expected to come in between $4.5 billion and $4.6 billion — far below the $5.4 billion consensus forecast from Wall Street analysts. And earnings per share? SMCI says these will land between 29 and 31 cents, missing the mark by a wide margin versus the estimates of 53 cents.

😬 Squeezed Margins Spook Investors

• The culprit? According to the company, customer platform decisions were delayed, pushing sales into the next quarter. While Super Micro did try to soothe nerves by saying “new generation product design wins are robust,” traders weren’t in the mood for optimism.
• Margins were also part of the pain: Super Micro said gross profit margin for the quarter will be 2.2 percentage points lower than the previous quarter, citing higher inventory reserves tied to older products and higher shipping costs for getting new gear out the door fast.

🗓️ Official Earnings Due May 6

• Super Micro will officially report its full third-quarter results on Tuesday, May 6, but the early look has already done plenty of damage.
• SMCI has been a retail trader darling for the past few years, up 18% year-to-date ahead of the market open. In February, the company even narrowly avoided a Nasdaq delisting after catching up on delayed filings.
• Nvidia NVDA, a big customer of Super Micro, also tumbled in after-hours trading with its shares down about 2%.