From Yahoo Finance: 2025-05-10 12:15:00

Super Micro Computer (NASDAQ: SMCI) stock fell after the company reported disappointing fiscal third-quarter results and weak guidance. Despite a rally earlier in the year, the stock is down nearly 50% since mid-February. Issues with operational results and revenue forecasting have plagued the company, leading to low gross margins and ongoing challenges.

The company’s revenue for the quarter rose 19% to $4.6 billion, missing earlier guidance. The forecast for fiscal Q4 sales of $5.6 billion to $6.4 billion also fell short of analyst estimates. Supermicro cited customer delays in platform decisions and uncertainty in the macroenvironment as reasons for the cautious outlook.

Gross margins continued to be a concern, dropping to 9.6% in the quarter and forecasted to be around 10% in fiscal Q4. Supermicro operates in a low-margin business with fierce competition and pressure from tariffs and GPU transitions affecting profitability. The company’s struggles point to a challenging road ahead despite a low valuation.

The Motley Fool Stock Advisor team did not include Super Micro Computer in their list of top 10 stocks for investors to buy now. The company’s challenges with revenue growth, gross margins, and market positioning make it a risky investment compared to companies with stronger technology and margin profiles in the AI infrastructure sector.



Read more at Yahoo Finance: Super Micro Computer Stock Sinks Again on Guidance. Is It Time to Buy the Dip?