SMCI Drops After Firm Reports Weak Guidance Amid Tariff Uncertainty

Super Micro (NASDAQ: SMCI) recently announced financial guidance that fell short of expectations, attributing the downturn to economic instability and newly implemented tariffs.

The company recently reported third-quarter earnings that missed Wall Street projections, with earnings per share at 31 cents compared to the expected 50 cents and revenue at $4.60 billion versus the anticipated $5.42 billion. The company also issued guidance for the fourth quarter that was below consensus expectations, forecasting a Q4 EPS in the range of $0.4 to $0.5 on a revenue of $5.6-$6.4 billion.

Despite these setbacks, the company reported a 19% year-over-year revenue increase for the quarter ending March 31. CEO Charles Liang noted that delays in AI platform evaluations have also contributed to the company’s challenges.

SMCI Fails to Impress with Q3 Results, Q4 Guidance

Super Micro’s recent financial performance has been under scrutiny following the release of disappointing third-quarter results. The company reported earnings per share of 31 cents, falling short of Wall Street’s expectation of 50 cents. Revenue also missed the mark, coming in at $4.60 billion compared to the anticipated $5.42 billion.

CEO Charles Liang attributed the shortfall to economic uncertainties and the impact of new tariffs. Additionally, he noted that customers are delaying commitments due to ongoing evaluations of AI platforms, further complicating the company’s financial outlook. The firm’s guidance for the fourth-quarter also fell below consensus expectations, highlighting a worrying trend.

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SMCI Stock Falls After Firm Issues Lower than Expected Q4 Guidance

Following the announcement of its financial results, Super Micro’s stock experienced a decline of approximately 4% in extended trading. The stock opened at $31.01 on May 7, 2025, and fluctuated throughout the day, reaching a low of $30.60 and a high of $31.80. At the time of writing, it is trading at $31.81, down over 3.4% from its previous close.

Despite these challenges, the stock has gained 9% in 2025, outperforming the S&P 500 index, which saw a 4% decline.

The company’s market cap stands at $18.8 billion, with a trailing P/E ratio of 13.73 and a forward P/E ratio of 7.45. Analysts have maintained a ‘Hold’ recommendation, with a target mean price of $46.85, indicating cautious optimism about the company’s future performance.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.