Overview

• Shares have dropped roughly 29% over the past month, with additional pressure from profit-taking in AI names and a rise in the 10-year Treasury yield to about 4.29%.
• Q4 FY2025 revenue grew 8% to $5.8 billion while EPS declined to $0.31 from $0.46 a year earlier, and gross margin compressed to about 9.5% from 17% in Q4 FY2023.
• The company’s latest 10-K cited significant weaknesses in financial reporting and disclosure controls that could hinder accurate, timely results and increase compliance costs.
• Competition from Dell, HPE and Lenovo plus product transitions linked to Nvidia has intensified pricing pressure and eroded profitability.
• Despite recent weakness, Super Micro remains a key supplier for Nvidia-optimized servers, and management signaled some delayed large orders could be recognized in the September and December quarters.