Key Takeaways
- Super Micro Computer shares tumbled in after-hours trading Tuesday after the server and data storage provider reported revenue that missed analysts’ expectations despite more than doubling from the year-ago period.
- Net income and diluted earnings per share beat expectations, and Super Micro Computer raised its full-year revenue guidance, anticipating growth in demand for artificial intelligence.
- Super Micro Computer has been a beneficiary of the AI boom, with its stock more than tripling in value since the start of 2024.
Super Micro Computer (SMCI) shares slumped over 9% in extended trading Tuesday after the server and data storage provider missed analysts’ expectations for revenue in the third quarter of its fiscal year.
The artificial intelligence (AI) hardware maker reported revenue of $3.85 billion, more than doubling from $1.28 billion in the same period a year ago amid a surge in demand for AI, but missing analysts’ higher expectations of $3.93 billion. Diluted earnings per share came in at $6.56, up from $1.53 in the year-ago quarter and above estimates compiled by Visible Alpha.
Super Micro Computer raised its full-year revenue guidance to $14.7 billion to $15.1 billion, up from $14.3 billion to $14.7 billion previously, saying it expects to gain market share as it ramps up new solutions.
Super Micro Computer has been a beneficiary of the AI boom, with its stock more than tripling in value since the start of the year on expectations of AI-related growth, and joining the S&P 500 in March.
However, the company’s share price came under pressure recently after it declined to preannounce its earnings earlier this month, raising investor concerns.
Super Micro Computer shares were down 9.6% at $775.98 in extended trading as of 6:50 p.m. ET Tuesday following the earnings release.