June 11 - Super Micro Computer (SMCI, Financial) is under pressure since posting weaker-than-expected fiscal Q3 results and signaling more turbulence ahead, despite booming AI infrastructure investment across the tech sector.
Revenue for the quarter came in at $4.55 billion, missing both the company's prior forecast of $5 billion to $6 billion and the $5.25 billion consensus from Refinitiv. EPS dropped to $0.31, below the roughly $0.55 target. Management pointed to AI server order delays and supply chain issues, warning the impact could reach up to $1.4 billion in lost sales.
Hopes for a Q4 rebound are fading. Super Micro now expects revenue between $5.6 billion and $6.4 billion, short of the $6.9 billion Wall Street estimate. Executives noted that customer deployment delays seen in Q3 are spreading and may push revenue into later quarters.
Profit margins are also under strain. The company flagged ongoing inventory-related drag, potentially trimming gross margins by as much as 100 basis points, with Q4 guidance near 10%.
Major hyperscalers like Meta (META, Financial), Amazon (AMZN, Financial), Microsoft (MSFT, Financial) and Alphabet (GOOGL, Financial) are boosting 2025 AI CAPEX by double digits, reflecting strong demand. However, despite this broader tech momentum, Super Micro faces execution challenges, supply disruptions and delayed deployments that may limit its ability to fully benefit from the AI boom.
Despite a nearly 30% rally this year, these hurdles raise questions about whether SMCI can sustain its recent stock gains amid accelerating industry spending.
