Super Micro Computer’s Stock Falls 16% On Weak Earnings And Outlook

Shares of Super Micro Computer (SMCI) are down 16% after the server maker reported financial results and guidance that disappointed investors.

The Silicon Valley-based company announced earnings per share (EPS) of $0.41 U.S., which missed the consensus target of $0.44 U.S.

Revenue in the quarter totaled $5.76 billion U.S., which was short of the $5.89 billion U.S. expected on Wall Street. Sales were up 7.5% from a year earlier.

Management blamed the poor showing on U.S. President Donald Trump’s tariffs on goods imported into America.

Super Micro Computer also provided weak forward guidance that underwhelmed both analysts and investors.

For the current quarter, Super Micro Computer said it anticipates earnings of $0.40 U.S. to $0.52 U.S. per share on $6 billion U.S. to $7 billion U.S. in revenue.

Analysts had been looking for earnings of $0.59 U.S. a share and $6.6 billion U.S. in sales.

Super Micro Computer enjoyed strong demand starting in 2023 for its data centre servers that run Nvidia (NVDA) microchips. However, growth in recent months has slowed.

The company is also recovering from an accounting scandal and narrowly avoided being delisted from the Nasdaq exchange after falling behind on its quarterly financial filings.

Prior to today (Aug. 6), SMCI stock had risen 90% this year to trade at $57.26 U.S. per share.