Super Micro Computer, Inc. (SMCI) is set to report its fourth-quarter fiscal 2025 results on Aug. 5. The company expects revenues between $5.6 billion and $6.4 billion, with a Zacks Consensus Estimate of $5.99 billion, indicating 12.76% growth from last year. Earnings per share are expected to be between 40 cents and 50 cents.

SMCI has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) currently. The company’s fourth-quarter top line is expected to benefit from direct liquid cooling and server offerings, including collaborations with NVIDIA. However, concerns about margin contraction persist due to various factors.

Super Micro Computer shares have gained 103.9% over the past year, outperforming the industry. Currently trading at a premium with a forward P/E of 23.71X versus the industry’s 19.94X. SMCI is emerging as a dominant force in AI infrastructure with its liquid cooling technology and AI product portfolio.

Despite SMCI’s promising offerings, shrinking margins and revenue slowdown are concerning for investors. The company’s financial performance is being affected by customer delays in purchasing decisions. Investors are advised to stay away from SMCI stock at present.

Read more at Nasdaq: Should Investors Buy, Sell or Hold SMCI Stock Before Q4 Earnings?