Super Micro Computer Inc. (NASDAQ:SMCI) saw its stock tumble over 3% in after-hours trading following the company’s announcement of a reduction in full-year revenue guidance due to disappointing preliminary Q2 results that fell short of expectations.

Financial Updates from Super Micro Computer

Preliminary Q2 Results

• Revenue: Estimated at $5.6B to $5.7B, below the analyst expectation of $5.89B.
• Non-GAAP EPS: Projected at $0.58 to $0.60, also below the expected $0.61.

Revised Full-Year Guidance

• New revenue range: $23.5B to $25B.
• Previous guidance: Estimated at $26B to $30B.

Reasons Behind the Guidance Cut

The downward revision indicates either weak demand or ongoing supply chain challenges, although specifics were not disclosed. The AI and data center growth, which has heavily influenced SMCI’s expansion, may be facing slowing demand from prominent hyperscalers or enterprise clients.

Market Reaction

• SMCI shares dipped over 3% after-hours, reflecting investor dissatisfaction over missed revenue expectations.
• Nonetheless, the company still stands as a vital entity in high-performance computing and AI infrastructure.

Tracking SMCI’s Market Position

To gauge industry trends, investors can take advantage of:

• Revenue Product Segmentation API: Insights into SMCI’s various revenue streams.
• Earnings Historical API: Analysis of past earnings trends to track changes.

Conclusion

Although SMCI’s revenue guidance has been reduced, raising concerns about sustainable demand, the long-term growth potential tied to AI remains a promising factor. Investors are looking forward to clarity in the upcoming earnings report.