Supermicro struggles with revenue forecasting and gross margin pressures, leading to a volatile stock performance. Despite a 7% increase in revenue to $5.76 billion for Q4 fiscal 2025, it missed analyst expectations. Gross margins have been under pressure due to lower prices and GPU platform transitions, dropping to 9.5%. The company aims to improve margins by focusing on higher-margin markets. While projecting strong revenue growth for fiscal 2026, Supermicro’s challenges with forecasting and margins persist, making it a risky investment. The stock trades at a forward P/E ratio of over 16 based on fiscal-year 2026 estimates.

Read more at Nasdaq: Supermicro Shares Plunge on Outlook. Is This a Red Flag or a Buying Opportunity?