"Last quarter was rough. Revenue of $5.0 billion fell short of the $6-7 billion guidance range after design win upgrades pushed revenue into Q2. Net income came in at just $168 million. Management maintained their full-year target of at least $33 billion in revenue, but investors need proof that the delayed orders are actually converting. Since that report, shares have struggled."
"I'll be watching gross margins more than the top line. The company's margin profile has deteriorated sharply, falling from 18.01% in fiscal 2023 to 11.06% in fiscal 2025. The most recent quarter showed margins of just 9.31%, the lowest in years. Analysts at BofA Securities have expressed concern that competitive bidding on large AI infrastructure deals is pressuring pricing power. Operating expenses also jumped 39% year-over-year as the company scales. If margins don't stabilize or improve this quarter, the revenue growth story loses credibility."
Super Micro Computer reported Q1 revenue of $5.0 billion, below the $6–7 billion guidance range, with net income of $168 million. Management retained a full-year revenue target of at least $33 billion while noting $12 billion in new design wins and a $13 billion order backlog. Shares have declined to about $29.06, near the low end of the 52-week range, after three consecutive quarters of missed analyst estimates. Gross margins fell from 18.01% in fiscal 2023 to 11.06% in fiscal 2025, with the most recent quarter at 9.31%. Analysts cite competitive AI infrastructure bidding and rising operating expenses as margin pressures. Execution on converting design wins into revenue with acceptable margins is the critical test.
Read at 24/7 Wall St.
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