Financial Performance and Market Reaction
announced preliminary Q3 results, expecting revenue between $4.5 billion to $4.6 billion and adjusted earnings per share of 29 to 31 cents, marking significant drops from previous forecasts due to delayed customer decisions.
Following the announcement, Super Micro's stock plummeted over 16%, with other chip companies like and also experiencing declines, reflecting broader investor concerns about the AI data center market.
Challenges and Outlook
The company cited higher inventory reserves from older products and expedite costs for new products as factors contributing to reduced gross margins. Despite this, Super Micro noted robust new generation product designs.
Super Micro's recent performance adds to its challenges, including past financial filing delays and governance issues. However, CEO expressed confidence in the company's growth potential for 2025, contingent on supply chain capabilities.