SMCI Stock Recent News

SAN JOSE, Calif.--(BUSINESS WIRE)--Super Micro Computer, Inc. (Nasdaq: SMCI) (“Supermicro” or the “Company”), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced it is participating in 1x1 meetings in the upcoming investor conferences: Event: J.P. Morgan Global Technology, Media and Communications Conference Date: May 13, 2025 Location: Boston, MA Event: CJS Securities Virtual Conference| Date: May 14, 2025 Event: Bank of America Securities Global Technology Confer.

Supermicro's Q3 FY25 revenue dropped 19% sequentially to $4.6B, while gross margin fell to 9.7% from 11.9% in Q2. Management attributed the decline to delayed customer orders amid the transition from Nvidia's Hopper to next-gen Blackwell GPU platforms. Inventory write-downs tied to older systems compressed margins by 220 basis points, exposing vulnerability in SMCI's ramp-first strategy.

The three stocks in this analysis all seem a bit sleepy in premarket trading, as we are looking forward to the US-China meeting over the weekend. At this point, traders have spent a lot of bullish energy in the markets, based on hope.

Super Micro Computer, Inc. (SMCI) faces multiple headwinds in FY2025, including supply chain disruptions, macro uncertainties, and management execution credibility that will take time to recover. Its total revenue missed 3Q FY2025 estimates for the third consecutive quarter, and earnings declined by over 50% YoY due to a one-time inventory write-off. Growth and margins are deteriorating, with FY2025 revenue outlook cut for the second time; and 4Q revenue outlook indicates just 12% YoY growth, sparking concerns about the company's specific demand.

This article serves as a review for Super Micro Computer, Inc.'s fiscal Q3 2025 earnings report. It focuses on a few topics less mentioned including its Silicon Valley expansion projects, EBITDA margin pressure, and also declining fixed asset turnover rates. The margin pressure and slowing turnover rate could indicate the start of a contracting phase of its business cycle.

Super Micro Computer, Inc. faces pressing challenging in transitioning from Hopper to Blackwell. Inventory charges aren't surprising, given the previous prelim update. Yet, the guidance was markedly disappointing. Yet, SMCI's post-earnings decline wasn't assessed to be debilitating. Its valuation has encapsulated much pessimism.

Super Micro Computer SMCI stock price dropped on Wednesday after the company reported worse-than-expected third-quarter financial results on Tuesday.

Super Micro Computer, Inc.'s early-year rally has unraveled as expected, with weak March-quarter earnings and persistent execution issues undermining confidence in its $40B FY26 revenue target. Management's shifting tone and slashed FY25 guidance raise doubts about the credibility of SMCI's long-term growth outlook, especially amid delayed Blackwell GPU deployments, rising competition, and other industrywide regulatory headwinds. Mounting inventory risks tied to the accelerated transition to next-generation Nvidia GB300 systems threaten further gross margin compression as well, which remains underappreciated.

Shares of Super Micro Computer (SMCI -7.07%) are falling on Wednesday. The stock lost 6.7% as of 1:36 p.m.

Two analysts lowered the target prices for SMCI stock.