Supermicro Faces Investor Backlash After Guidance Cut

Super Micro Computer Inc. (SMCI) experienced a sharp decline in its stock price, dropping over 5% in Wednesday's premarket trading. This reaction comes in response to the company's announcement of reduced revenue guidance for 2025, alongside its latest quarterly earnings report.

Revised Revenue Outlook and Quarterly Performance

The tech giant has adjusted its 2025 revenue forecast downward, from an initial range of $23.5 billion to $25.0 billion to a new range of $21.8 billion to $22.6 billion. Despite a 19% year-on-year increase in net sales to $4.6 billion for the third quarter of fiscal 2025, figures fell short of the previous quarter's performance. Additionally, net income saw a significant 73% drop compared to the same period last year, settling at $109 million, or $0.17 per diluted share.

Market Reaction

By 4:17 am ET, Supermicro's stock price had decreased by 5.13%, reaching $31.25, reflecting investor concerns over the company's revised financial outlook and recent earnings performance.