Supermicro Faces Sharp Decline in Stock Value

Super Micro Computer Inc. (SMCI) experienced a significant drop in its stock price on Wednesday, following an announcement that revised its third-quarter revenue and earnings forecasts downwards. This news led to an early trading sell-off of nearly 20%.

Revised Forecasts Signal Challenges Ahead

The company 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 drop, ranging from $0.29 to $0.31, down from the earlier estimate of $0.46 to $0.62.

Reasons Behind the Shortfall

Super Micro attributed the lower forecasts to delayed customer orders and increased inventory costs. By 9:36 am ET, the company's shares had fallen by 19.13%, trading at $29.12.