Super Micro Computer Inc., which emerged as a hot AI stock last year, issued a first-quarter earnings outlook that significantly missed Wall Street's expectations, catching many by surprise on Thursday.

The San Jose, California-based server manufacturer projected first-quarter revenues of approximately $5 billion for the period ending September 30, as "upgraded" orders have caused some sales to be deferred to the second quarter. Analysts had previously estimated revenues of around $6.5 billion.

The company’s stock fell as much as 7.6% in New York. Super Micro stated that it has recently secured over $12 billion in new business from customers requesting products to be delivered in the second quarter. They reiterated expectations for fiscal year 2026 revenues to be at least $33 billion and indicated that further sales details would be disclosed in their earnings call on November 4.

Since failing to file its annual report on time in August 2024, the company has been working to resolve accounting issues. Its auditing firm, Ernst & Young, subsequently resigned, citing concerns over corporate governance and transparency. Despite finally submitting financial statements, the company has warned of internal financial control issues once more this year.

In August, the company indicated that it had implemented remedial measures to address "significant deficiencies" in internal controls, while cautioning that more deficiencies may arise in the future.

Despite these warnings, Super Micro remains a beneficiary of the AI boom, with its stock price having risen 72% year-to-date as of Wednesday's close.