MW Why Super Micro's stock is falling after earnings - even as guidance moves higher

By Emily Bary

Super Micro continued to exhibit margin pressure in the latest quarter, reflecting a competitive server market

Super Micro saw margins weaken in the September quarter.

Super Micro Computer boosted its full-year forecast Tuesday, but its stock is still moving lower.

The server maker currently expects at least $36 billion in revenue for the fiscal year that ends next June, up from a prior outlook that called for at least $33 billion.

And Super Micro's December-quarter revenue outlook came in better than expected as well, with the company calling for $10 billion to $11 billion versus the nearly $8 billion FactSet consensus. Granted, that's after the company delivered a big shortfall relative to estimates in its September quarter, a dynamic the company previously attributed to timing issues, or the idea that business previously expected to impact the September quarter would take a bit longer to materialize.

Read: Super Micro's latest financial update adds to credibility concerns

But Super Micro's stock $(SMCI)$ was falling 8% in Tuesday's extended session, as the company also showed margin pressure in its most recent quarter. Super Micro's gross margin was 9.3% in the September quarter versus 9.5% in the June quarter and 13.1% in the year-earlier September quarter.

Whereas Super Micro was once uniquely capitalizing on booming demand for AI servers, the market has become more competitive and commoditized, which has impacted profitability.

Nonetheless, CEO Charles Liang was upbeat about the company's future as Nvidia's Blackwell offerings further come into play. He cheered "a rapidly expanding order book" that included more than $13 billion of Blackwell Ultra orders.

Analysts have also previously flagged credibility issues when it comes to Super Micro's guidance. Even though the company backed its earlier $33 billion-plus revenue view when it disclosed preliminary earnings numbers in late October, the consensus view was at just over $32 billion heading into Tuesday's report. The company has a track record of disappointments relative to guidance.

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-Emily Bary

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November 04, 2025 16:49 ET (21:49 GMT)

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