Super Micro's rocky road: Shares stumble after disappointing forecast

2025-04-30 general

new york, Wednesday, 30 April 2025.
Super Micro Computer’s shares took a nosedive, plummeting 19% following a weak preliminary financial report. The company cited client decisions as the cause, but investors are spooked. The news also impacted related stocks like Nvidia and Dell. This recent downturn follows a volatile period for Super Micro, with shares having previously tripled in 2023 before losing 80% of their market cap. The company’s projected revenue growth has slowed dramatically, from 200% a year ago to a mere 18% now, intensifying concerns about its future performance.

Financials disappoint investors

Super Micro Computer’s preliminary results for the fiscal third quarter fell short of analyst expectations [2]. Adjusted earnings per share (EPS) are estimated to be between $0.29 and $0.31, significantly lower than the anticipated $0.54 [1][5]. Revenue is projected to be in the range of $4.5 billion to $4.6 billion, missing the $5.5 billion target [1]. The company attributed the disappointing figures to delayed customer platform decisions, which shifted some sales into the fourth quarter [1][5]. Super Micro also cited higher inventory reserves due to older generation products impacting their performance [1].

Market reaction and competitor impact

The weak financial report triggered a widespread sell-off [2]. Super Micro’s shares plunged as much as 19% on the news [1]. In after-hours trading, the stock experienced a further decline of 20% [5]. The ripple effects extended to other tech stocks. Dell’s stock price dropped nearly 5%, HP Inc. declined about 2%, and Nvidia temporarily fell by 2.9% [5]. These movements highlight the interconnectedness of the server market and the sensitivity of investor sentiment to key players’ performance [2].

A history of turbulence

Super Micro’s recent struggles compound existing concerns [2]. The company faced scrutiny for delayed financial filings and governance issues raised by short-sellers [2]. In February 2025, Super Micro finally submitted its financial reports for fiscal year 2024 and the first two quarters of fiscal year 2025 [1][5]. This action occurred just before the Nasdaq delisting deadline [2]. Furthermore, the company replaced its auditor, Ernst & Young, with BDO in November 2024, following governance concerns [1][2].

CEO’s optimistic outlook versus current reality

Despite the recent setback, Super Micro’s CEO, Charles Liang, expressed confidence in the company’s future [1]. In February, Liang stated that 2025 growth could mirror or surpass 2023, assuming the supply chain keeps pace with demand [1][2][5]. However, this optimistic outlook contrasts sharply with the current situation [alert! ‘forward looking statement’]. The company’s preliminary gross margin also narrowed by 220 basis points compared to the previous quarter, adding to investor worries [5]. Super Micro will hold a conference call on May 6 to discuss the financial details with analysts [2][5].

Bronnen

stock performance financial results