Sharp Decline in Super Micro Computer Inc.'s Shares

Super Micro Computer Inc. (SMCI) experienced a significant drop in its stock value on Wednesday, following the company's announcement of reduced revenue and earnings forecasts for the third quarter. This news led to an early trading sell-off of nearly 20%.

Revised Financial Forecasts

The server maker now anticipates revenue to be between $4.5 billion and $4.6 billion, a considerable decrease from its previous forecast of $5 billion to $6 billion. Adjusted earnings per share are also expected to decline, with estimates now at $0.29 to $0.31, down from $0.46 to $0.62.

Reasons Behind the Shortfall

Super Micro attributed the downward revision to delayed customer orders and increased inventory costs, factors that have significantly impacted its financial outlook.

At its lowest point during the day, the company's shares were down by 19.13%, trading at $29.12 at 9:36 am ET.