SMCI Plummets as Prelim. Earnings Short of Forecasts, Guidance Cut

Super Micro Computer Inc. (NASDAQ: SMCI) has encountered a significant hurdle as its stock price has plummeted. The drop followed the announcement of preliminary financial results for the fiscal third quarter, which did not meet analyst expectations.

The company’s earnings per share were reported between $0.29 and $0.31, falling short of the anticipated $0.54. Revenue was also below expectations, reported at $4.5 billion to $4.6 billion compared to the forecasted $5.5 billion.

These financial difficulties have been attributed to delays in customer platform decisions and increased inventory reserves. The decline in Super Micro’s stock has also impacted its competitors, including Dell (NASDAQ: DELL) and Hewlett Packard Enterprise (NYSE: HPE), whose shares fell in today’s trading session as well.

SMCI’s Prelim. Results Raise Questions for the Server Industry

Super Micro’s recent financial performance has raised concerns among investors and analysts alike. The company reported earnings per share that were significantly below expectations, with revenue figures also missing the mark. This underperformance has been linked to delayed customer decisions, which have pushed anticipated sales into future quarters.

Additionally, the company is grappling with higher inventory reserves caused by older generation products. These factors have contributed to a challenging financial landscape for Super Micro, further complicated by past controversies, including delays in financial filings and scrutiny from short-seller reports.

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SMCI Stock Continues to Plunge

Following the financial announcement, Super Micro’s stock opened at $29.12 on April 30, 2025, a notable drop from the previous close of $36.00. Throughout the day, the stock fluctuated, reaching a low of $28.785 and a high of $30.29.

Despite these fluctuations, the stock remained significantly below its 52-week high of $101.402. The company’s market challenges have also influenced its peers, with shares of Dell and Hewlett Packard Enterprise experiencing declines.

Analysts have maintained a “hold” recommendation, with target prices ranging from $15.00 to $93.00, reflecting uncertainty in the market’s outlook for Super Micro.

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.