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Super Micro shares dive after server maker issues weak preliminary financials

  • Super Micro Computer Inc. Announced weak preliminary financial results for Q3 fiscal 2025 on April 29, 2025, causing its shares to drop nearly 18% in after-hours trading.
  • The reduction in guidance is attributed to customers postponing platform choices, which caused some revenue to shift to the fourth quarter, along with operational difficulties such as increased inventory provisions and accelerated expenses to support the launch of new products.
  • Supermicro has revised its Q3 revenue forecast downward to a range of $4.5 billion to $4.6 billion, a decrease from the earlier estimate of $5.0 billion to $6.0 billion. Additionally, the company now anticipates GAAP diluted earnings per share between $0.16 and $0.17, which is lower than the previous guidance of $0.36 to $0.53.
  • The company reported a 220 basis point decrease in GAAP and Non-GAAP gross margin from Q2 mainly due to older inventory write-downs and costs to accelerate new product time-to-market, while new generation product design wins remain robust.
  • These results raise concerns about Supermicro’s ability to maintain growth amid competitive AI server market pressures, with analysts and investors reassessing its near-term prospects ahead of a May 6 conference call.
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bipns.com broke the news in on Tuesday, April 29, 2025.
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