By Angela Palumbo
Super Micro Computer stock tumbled Wednesday as analysts and investors reacted to the server maker's disappointing financial guidance.
SMCI stock fell 5.5% to $31.16 on Wednesday. After Tuesday's closing bell, the company provided weaker-than-expected revenue guidance for its June quarter. SMCI also reported a drop in its March quarter revenue, though that wasn't a shock to investors, because the company had provided preliminary results in April.
Super Micro sells servers that house Nvidia chips made to power AI workloads, including its Hopper and Blackwell chips. The highly anticipated Blackwell chips are the successor to Hopper, and according to Nvidia, Blackwell Ultra-based products are expected to be available starting in the second half of 2025. Some customers appear to be waiting for the Blackwell line's arrival, putting off expected revenue for SMCI.
Super Micro CEO Charles Liang said on Tuesday's earnings conference call that the revenue decline was primarily due to customers "waiting and evaluating AI platforms between the current Hopper and upcoming Blackwell GPUs leading to delayed commitments."
However, the company expects many of these deals to materialize in the June and September quarters, Liang added.
"The below consensus outlook for the June quarter implies the push-outs in revenues resulting from customers awaiting next-generation GPUs will take more than a quarter to resolve," Citi analyst Asiya Merchant wrote in a research note Wednesday. She lowered her price target on SMCI to $37 from $39 while maintaining a Neutral rating.
Barclays analyst George Wang also cut his price target to $29 from $34, while keeping an Equal Weight rating on the stock. He wrote in a note Tuesday that "there is still too much uncertainty on AI server builds and a lack of visibility into CY25 [calendar year 2025] as customers go through product transitions."
Write to Angela Palumbo at angela.palumbo@dowjones.com
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May 07, 2025 12:11 ET (16:11 GMT)
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