Super Micro (SMCI.O) missed Wall Street estimates for its fourth-quarter revenue and profit, as the company faces stiff competition from larger server manufacturers in the AI-driven high-performance computing market. Shares plunged about 15.5% in extended trading following the earnings release and multiple downward revisions to its full-year guidance.
The company now forecasts at least $33 billion in revenue for fiscal year 2026, falling short of its earlier target of around $40 billion set in February. Analyst expectations averaged $29.94 billion, according to LSEG data.
Despite gains in the competitive server market, Super Micro is losing ground to industry giants such as Dell Technologies (DELL.N) and HP Enterprise (HPE.N), which benefit from larger customer bases. Analyst Gil Luria of D.A. Davidson suggested customers prefer servers from these bigger players amid strong market demand.
Dell raised its annual profit forecast, and HP Enterprise beat second-quarter revenue and profit estimates, underscoring Super Micro’s challenges. CEO Charles Liang noted improved chip availability expected in the fiscal year ahead, following previous delays in Nvidia (NVDA.O) processor supplies that hurt recent quarters.
Super Micro’s shares have surged about 90% this year amid excitement over AI server demand and innovative cooling technologies. However, as Kim Forrest of Bokeh Capital Partners explained, investor enthusiasm for AI-related firms means any softness can trigger sharp sell-offs.
For the quarter ended June 30, Super Micro posted revenue of $5.76 billion, below the $5.89 billion consensus, and adjusted earnings per share of 41 cents, missing estimates of 44 cents due in part to tariff impacts.