Sharp Decline in Super Micro Computer Inc.'s Shares

Super Micro Computer Inc. (SMCI) experienced a significant drop in its share price on Wednesday, following the company's announcement of lowered 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 in the range of $4.5 billion to $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. The company attributes this shortfall to delayed customer orders and increased inventory costs.

Market Reaction

Following the announcement, Super Micro's shares hit an intraday low, plummeting by 19.13% to $29.12 by 9:36 am ET.