"Super Micro Computer ( NASDAQ:SMCI ) was once a Wall Street favorite, riding the artificial intelligence (AI) wave with shares surging nearly 100% in early 2025. But investor trust eroded as revenues stalled and gross margins compressed amid execution issues and competition. Sales dropped 15% year over year in its fiscal 2026 first quarter to $5 billion, significantly missing the company's guidance range of $6 billion to $7 billion."
"On Friday, Supermicro's stock jumped 11% to close at $32.64 per share, fueled by Taiwan Semiconductor Manufacturing 's ( ) strong Q4 earnings and an upbeat 2026 outlook, which signaled sustained AI chip demand. While Supermicro's management had raised its fiscal 2026 revenue guidance to at least $36 billion, claiming a rebound was in the making, is this really the spark of recovery, or a fleeting sucker's rally before more declines?"
Super Micro Computer designs and manufactures high-performance servers, storage systems, and related software for data centers, cloud computing, AI, and edge applications. AI GPU platforms accounted for over 75% of Q1 revenue, and the company offers AI-optimized solutions including GPU servers and liquid-cooled systems in partnership with Nvidia. Fiscal 2026 Q1 sales fell 15% year over year to about $5 billion, significantly below guidance of $6–$7 billion, driven by delayed shipments and customer logistics. Gross margins compressed amid execution issues and competition. Management raised fiscal 2026 revenue guidance to at least $36 billion, while broader AI chip demand signals from TSMC prompted a recent stock uptick.
Read at 24/7 Wall St.
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