Super Micro Computer Stock Plummets Over 9% Following Q1 Earnings Disappointment

Super Micro Computer, Inc. (SMCI) reported underwhelming first-quarter fiscal 2025 results, missing analyst expectations on key financial metrics. The company posted earnings of 35 cents per share on revenue of $5.02 billion, falling short of the anticipated 40 cents per share and $6 billion in revenue.

Revenue declined 15% year-over-year from $5.94 billion, while net income dropped more than half to $168.3 million from $424.3 million in the same period last year. CEO Charles Liang cited design changes for GPU racks requested by a high-volume customer, which delayed approximately $1.5 billion in expected Q1 revenue into the second quarter.

Despite the miss, Super Micro raised its Q2 revenue guidance to $10 billion to $11 billion, well above the $7.83 billion analyst estimate, and increased its full-year revenue forecast to at least $36 billion from the previous $33 billion outlook. The stock fell over 9% in premarket trading following the announcement, reflecting investor concerns.

Analysts from J.P. Morgan and Susquehanna expressed worries about margin pressures in the AI server market, noting that companies are sacrificing profits to secure large deals. Super Micro's partnership with Nvidia and its role in AI infrastructure, including the Blackwell Ultra GPU series, contributed to a $13 billion GB300 order book, but intensifying competition has strained financial metrics.