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4mo ago

Super Micro Cuts Q3 Guidance, Shares Drop Over 15%

The server maker cites delayed customer decisions and inventory challenges, fueling concerns about AI infrastructure spending resilience.

Logos of Super Micro Computer are pictured at COMPUTEX Taipei, one of the world's largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang/File photo
Charles Liang, chief executive officer of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024.
Image
(Supermicro)

Overview

  • Super Micro reduced its Q3 revenue forecast to $4.5–$4.6 billion, down from $5–$6 billion, and cut EPS guidance to $0.29–$0.31 from $0.46–$0.62.
  • The company attributed the shortfall to delayed customer platform decisions, pushing some sales into the fourth quarter.
  • Gross margins declined by 220 basis points due to higher inventory reserves for older products and expedited costs for new product launches.
  • Shares plummeted over 15% in after-hours trading, reflecting investor concerns over operational missteps and broader AI market uncertainties.
  • Super Micro plans to address the financial shortfall and provide updates during an analyst call on May 6.