San Jose’s server giant Super Micro Computer took a brutal hit on April 29, 2025, its stock cratering after a bombshell announcement that customer indecision could cost the company as much as $1.4 billion in sales. The news sent shares tumbling 3% during trading, then a gut-punching 15% more after hours, leaving investors reeling and analysts scrambling for answers.
The trouble started with a preliminary earnings report that landed like a lead pipe. Super Micro, a key player in AI server tech, said it expects third-quarter revenue to clock in between $4.5 billion and $4.6 billion—far below its earlier forecast of $5 billion to $6 billion. Earnings per share? A measly 16 to 17 cents, compared to the 36 to 53 cents it had promised. The culprit: customers dragging their feet on picking server platforms and configurations, pushing big-ticket sales from the third quarter into the fourth. That delay stung, and it showed in the numbers—gross profit margins slid 220 basis points from the prior quarter, hammered by higher inventory reserves for older gear and rushed costs to roll out new products.
This isn’t Super Micro’s first rough ride. The company’s been clawing its way back from a chaotic 2024, when a scathing short-seller report, a sudden auditor exit, and delayed financial filings put it in the Nasdaq’s crosshairs for possible delisting. CEO Charles Liang, whose compensation hit $28 million despite a $1 salary and no bonus, has been under pressure to steady the ship. Tuesday’s announcement didn’t help.
The market didn’t sugarcoat its reaction. Super Micro’s stock, already volatile, got hammered as investors questioned the company’s growth story, especially with rivals like Dell and Hewlett Packard Enterprise also feeling the ripple effects. For a firm that’s been riding the AI wave, the setback raises hard questions about execution in a cutthroat market.
Super Micro’s full earnings report is slated for May 6, 2025. Until then, the company’s stuck in the hot seat, with Wall Street watching every move.