Super Micro Falls After Cutting Annual Sales Forecast

SUPER MICRO COMPUTER INC shares plunged after the company lowered its fiscal-year revenue forecast and projected quarterly profit that fell short of estimates, raising questions about sales and pricing pressures around powerful AI servers.

The shares dropped about 17% in premarket trading on Wednesday.

Revenue in the year ending in June 2026 will be at least $33 billion, Super Micro said Tuesday in a statement. In February, the company offered a bullish long-term outlook because of demand for AI products with NVIDIA’s chips, saying sales would be $40 billion — then almost twice as much as analysts’ estimates for the current fiscal year.

The profit forecast for the period ending in September also implies a 5% operating margin, while analysts, on average, were expecting 7%, said Woo Jin Ho, an analyst at Bloomberg Intelligence.

Super Micro’s shares have surged 88% this year on optimism it would benefit from soaring demand for AI gear. Instead, the company’s revised fiscal-year outlook raises questions about its ability to capitalize on demand for artificial intelligence equipment with the latest Nvidia chips. The company has also been struggling with margins as it deals with older inventory amid pressure to price its products lower in order to win AI server deals over rivals.

“Super Micro’s 1Q and 2026 outlook lowers the expectations bar,” Ho said. “However, its outlook implies a highly competitive pricing environment in these mega-server deals, in particular from Dell.”

Dell Technologies Inc. has also been pushed to accept narrower margins in order to secure large deals like its AI server contract with xAI, Bloomberg reported earlier this year, citing people familiar with the deals.

Super Micro reported that fiscal fourth-quarter revenue increased 7.5% to $5.76 billion. Profit, excluding some items, was 41 cents a share, the San Jose, California-based company said in a statement. Analysts, on average, estimated profit of 44 cents on sales of $6.01 billion.

Chief Executive Officer Charles Liang said some customers continue to wait for new products with the latest Nvidia chips, hurting demand for current offerings. “We have to wait and see,” he told analysts on a conference call after the results, noting that the company expects greater availability of those powerful AI semiconductors in the future compared with the past two quarters.

In the period ending in September, Super Micro projected revenue will be $6 billion to $7 billion. Earnings, excluding some items, will be 40 cents to 52 cents a share. Analysts, on average, projected profit of 59 cents on sales of $6.59 billion.