Super Micro's Stock Sinks Over 16% After Cutting Financial Forecasts

Published 1 hours agoSMCI

Super Micro's Stock Sinks Over 16% After Cutting Financial Forecasts

Super Micro Computer's stock tumbled more than 16% in extended trading after the company announced disappointing preliminary financial results. The server manufacturer revised its third-quarter revenue forecast significantly lower to between $4.5 billion and $4.6 billion, down from a previous estimate of $5 billion to $6 billion. Adjusted profit expectations were also reduced to 29–31 cents per share from a previous forecast of 46–62 cents, as reported by Reuters.

The stock's sharp decline comes amid broader concerns about delayed customer spending decisions and inventory build-up of older products. Super Micro pointed to customers postponing platform decisions, effectively pushing sales into future quarters, as a primary reason for the missed forecasts. This echoes broader market worries as companies, including Microsoft, reassess AI-related project investments due to fears of oversupply.

Adding to its challenges, Super Micro has faced scrutiny over its accounting practices, narrowly avoiding delisting by filing its delayed 2024 annual report in February. These developments have left investors questioning the company's financial health and its future in the rapidly shifting AI market landscape.

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