onlyTrustedInfo.comonlyTrustedInfo.comonlyTrustedInfo.com
Notification
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Reading: Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast
Share
onlyTrustedInfo.comonlyTrustedInfo.com
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Search
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
  • Advertise
  • Advertise
© 2025 OnlyTrustedInfo.com . All Rights Reserved.
Finance

Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast

Last updated: May 7, 2025 8:00 pm
Oliver James
Share
7 Min Read
Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast
SHARE

Super Micro Computer (NASDAQ:SMCI) stock price dropped on Wednesday after the company reported worse-than-expected third-quarter financial results on Tuesday.

Wall Street analysts rerated the stock.

  • Needham analyst Quinn Bolton reinstated Super Micro Computer with a Buy and a $39 price target.

  • Wedbush analyst Matt Bryson reiterated Super Micro Computer with a Neutral rating and lowered his price target to $30 (from $40).

  • JP Morgan analyst Samik Chatterjee gave Super Micro Computer a neutral rating and a price target of $35 (down from $36).

Also Read: Super Micro Faces Cautious Analyst View Amid Shifting Customer Demand And Declining Margins

Needham: Super Micro posted third-quarter revenue of $4.6 billion, -19.0% Q/Q and +19.5% Y/Y, in line with the company’s preliminary announcement but well below previous guidance (midpoint at $5.5 billion). The weakness was due to customers waiting and evaluating next-gen AI platforms (Blackwell), which led to delayed commitments.

The quarterly adjusted gross margin came in at 9.7%, below the Street’s 10.1% estimate. Margins were negatively affected by higher inventory reserve charges on older Hopper systems, lower volume, and accelerated new-product costs.

The quarterly adjusted EPS was $0.31, which is in line with the preliminary announcement but well below the previous guidance (midpoint at $0.54). The miss was driven by lower revenue and margins.

The company guided fourth-quarter revenue to $6.0 billion at the midpoint, +30.4% Q/Q and +13.0% Y/Y, well below Bolton’s estimate of $7.0 billion and the Street’s estimate of $6.59 billion.

The quarterly adjusted EPS should come in at $0.45 at the midpoint, below Bolton’s prior estimate of $0.74 and the Street’s estimate of $0.64.

Super Micro has been at the forefront of liquid cooling technology, and the announcement of DLC-2 further solidifies its leadership.

Management highlighted product transitions from Hopper to Blackwell and tariff uncertainty as key contributors to near-term weakness.

Despite near-term headwinds, Bolton became incrementally more positive for the company as it filed its 2024 10-K and 2025 10-Qs and added to its management bench. The analyst found the valuation extremely attractive for a company targeting AI/HPC end markets and being at the forefront of liquid-cooled data centers.

Wedbush: Bryson noted that GB200 and B200 availability was limited early in the quarter, with initial parts primarily shipping to select Nvidia Corp (NASDAQ:NVDA) accounts.

This situation has been largely rectified, supporting a rebound in the next quarter. Super Micro is effectively guiding for a slight dip in gross margins on older products that it likely needs to discount to sell. The analyst noted OEMs were pushed to take Hopper, given B200 shortages.

He said Super Micro’s choice to step away from guiding for a gross margin rebound was properly pragmatic, particularly given uncertainty around the US administration’s next steps. In the intermediate to longer term, Bryson expects better pricing and margins on initial B200 servers in light of the tight supply. Super Micro’s diversified manufacturing presence could allow it to better navigate US policy than some of its peers.

Bryson projected fourth-quarter revenue of $5.95 billion and adjusted EPS of $0.45.

JP Morgan: Super Micro posted results primarily in line with the pre-announcement that had represented a roughly $900 million miss on revenue and an approximately 200 bps+ miss on gross margins to the earlier stated outlook for the fiscal third quarter.

With the company pre-announcement implying that the miss was led by one-off factors like customer platform decisions and inventory write-downs, expectations were for a sharper earnings rebound through revenue and margins.

However, the update from the company about fiscal fourth-quarter expectations highlights customer push-out of deployments in fiscal third-quarter was not limited to one or two customers and represents an ongoing challenge about customers deciding between multiple platforms as well as data center readiness to accept shipments as planned.

Lower cost inventory-related headwinds to gross margins are still not entirely behind the company, with up to 100 bps of gross margin impact in the fiscal fourth quarter, driving guidance for ~10% gross margins.

There remains the potential for further risks to gross margin if the company does not manage to sell its Hopper inventory. On the business drivers, the company continued to highlight leadership relative to the time to market for the latest technology-based servers in the high-growth AI servers market, as well as the expected launch of Data Canter Building Block Solutions (DCBBS), featuring their next-generation Direct Liquid Cooling (DLC 2.0) capabilities.

Chatterjee projected fourth-quarter revenue of $6 billion and adjusted EPS of $0.44.

Price Action: SMCI stock closed at $32.48 on Wednesday.

Read Next:

  • Nvidia, Broadcom Lead Fund Manager Buys Even As Semiconductor Sector Cools: Analysts

Photo courtesy: CryptoFX via Shutterstock

Latest Ratings for SMCI

Date

Firm

Action

From

To

May 2021

Susquehanna

Maintains

Positive

May 2021

Northland Capital Markets

Maintains

Outperform

Jun 2020

Northland Capital Markets

Initiates Coverage On

Outperform

View More Analyst Ratings for SMCI

View the Latest Analyst Ratings

“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

  • SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report

This article Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

You Might Also Like

A Big Bet With A Bigger Payoff-How Costco Turned Kirkland Into An $86 Billion Brand By Going Against The Grain

Fed Chair Powell meets with Trump at the White House

Is doing a VA cash-out refinance a good idea? Here’s what to know

Decision looming for Trump administration on first PFAS drinking water limits

What companies say about the impact of MAGA policies

Share This Article
Facebook X Copy Link Print
Share
Previous Article Why Seeing the Rare Luna Moth is a Sign of Good Luck Why Seeing the Rare Luna Moth is a Sign of Good Luck
Next Article My VC firm invests in hundreds of early-stage startups. AI won’t put good engineers out of jobs — we’re going to need more of them. My VC firm invests in hundreds of early-stage startups. AI won’t put good engineers out of jobs — we’re going to need more of them.

Latest News

Jensen Huang dismisses Anthropic CEO’s claim that AI will eliminate jobs: ‘He thinks AI is so scary, but only they should do it’
Jensen Huang dismisses Anthropic CEO’s claim that AI will eliminate jobs: ‘He thinks AI is so scary, but only they should do it’
Tech June 10, 2025
Photos show accuser in NYC crypto kidnapping leaving house freely, defense lawyers say
Photos show accuser in NYC crypto kidnapping leaving house freely, defense lawyers say
Tech June 10, 2025
Augmented reality can show local residents future building plans in real time — and Tampa Bay wants in
Augmented reality can show local residents future building plans in real time — and Tampa Bay wants in
Tech June 10, 2025
With retail cyberattacks on the rise, customers find orders blocked and and empty shelves
With retail cyberattacks on the rise, customers find orders blocked and and empty shelves
Tech June 10, 2025
//
  • About Us
  • Contact US
  • Privacy Policy
onlyTrustedInfo.comonlyTrustedInfo.com
© 2025 OnlyTrustedInfo.com . All Rights Reserved.