Super Micro Computer Inc Stock Plummets 15%! Revenue and Profit Both Disappoint, Market Pessimistic About Server Outlook!
TradingKey - Super Micro Computer's performance fell short. Its stock dropped 15%, impacting several server competitors.
On Tuesday, Super Micro Computer Inc (SMCI) released its preliminary third-quarter results during after-hours trading, falling short of market expectations. The stock fell as much as 16% before closing down 15%.
Super Micro Computer Inc stock price trend chart, source: Google.
According to the report, Super Micro Computer Inc's revenue came in between $4.5 billion and 4.6 billion—well below analyst’s forecast of $5.35 billion. Adjusted earnings per share (EPS) were reported at 29-31 cents, significantly lower than the expected 53 cents.
Super Micro Computer Inc explained, "Some customers delayed product decisions in Q3. This pushed some sales to Q4." They also noted that older products led to increased inventory write-downs, affecting performance.
Following the report, not only did Super Micro Computer's stock tumble, but the broader server sector suffered. Dell(DELL) declined 3.28%, Nvidia (NVDA) fell 2.06%, and HP (HPQ) decreased 1.65%.
Related Articles
Ahead of Berkshire’s Annual Meeting: How Did Buffett Make $20B in a Weak Market?
Tradingkey - As of April 29, Berkshire Hathaway (BRK.A) shares have surged 17.4% year-to-date, beating the broader market by a wide margin. Meanwhile, the S&P 500 has fallen 5.2%, while the Nasdaq Composite saw a maximum drawdown of 9.4%.
Starbucks (SBUX): Q2 Numbers Look Worse than the Reality Actually Is, but Need to See More Drop in Price to become Attractive
TradingKey - Disappointing results but a change in the strategy towards ramping up hiring may pay off with higher growth and winning back market share (of course, at the expense of profitability). The current valuation of 25x 2026 expected earnings not enticing, better stay on the sideline with...
[Reuters Analysis] China ramps up global yuan push, seizing on retreating dollar
SHANGHAI/SINGAPORE, April 29 (Reuters) - As Chinese President Xi Jinping toured Southeast Asia this month to forge closer ties against higher U.S. tariffs, the People's Bank of China was seizing a moment of confusion and disruption in global trade to promote greater usage of the yuan.
Apple FY2025 Q2 Earnings Preview: Can It Thrive in a Trade War Storm?
TradingKey - As Apple ready to release its Q2 FY2025 earnings, the tech giant stands at a crossroads, navigating a landscape shaped by robust fundamentals, escalating trade tensions, and intensifying competition. With its iconic brand and formidable cash flow, Apple remains a cornerstone of the...
Microsoft (MSFT) Q3 2025 Earnings Preview: What Should Investors Expect?
TradingKey - Microsoft will report its 2025Q3 earnings on 30th of April, after the market closes. As one of the big tech companies and part of the Mag 7, Microsoft earnings are always seen as important news. These are the following aspects investors should pay attention to...