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SMCI: Super Micro Stock Plunges 14% as Revenue Miss Shakes Up Confidence in AI Play
Key points:
- Super Micro disappoints investors.
- Revenue comes shy of consensus.
- Full-year guidance remains upbeat.
Super Micro posted a whopping 200% increase in revenue from a year ago. But investors wanted more. Stock crashed.
- Super Micro Computer stock
SMCI fell 14% after the server maker posted disappointing financial results. For the fiscal third quarter ended March 31, Super Micro picked up $3.85 billion in revenue. Despite the fact that sales tripled from the year-ago quarter, investors had projected growth by $3.99 billion. Profits on an adjusted basis landed at $6.65 a share, dwarfing the $1.63 from last year. - The company continues to ride the AI trend as an avalanche of AI-capable server demand has lifted the company’s share price by more than 150% this year. More than that, SMCI was the best-performing stock in the S&P 500 for the first quarter. For the current trimester, markets have even bigger expectations.
- Super Micro issued revenue guidance of $5.1 billion to $5.5 billion with adjusted profits of $7.62 to $8.42 a share. Wall Street had projected sales to hit $4.9 billion with $7.18 in adjusted profit per share. And for the full year, revenue is expected to land between $14.7 billion and $15.1 billion while adjusted profits are pinned between $23.29 to $24.09 a share.