Super Micro Computer’s stock is down by 20% after it reported disappointing preliminary quarterly results. The company’s revenue forecast for the fiscal third quarter is now expected to be between $4.5 billion and $4.6 billion.
This is much lower than the earlier estimate of $5 billion to $6 billion. Because of this, analysts have lowered their price targets for the stock, with Barclays cutting its target from $59 to $34 and JPMorgan reducing it from $39 to $36.
The main reason for this drop in expected revenue is that customers are delaying their purchases. This has pushed some sales into the next fiscal quarter. The delays are partly due to uncertainty about the Trump administration’s tariff policies, causing businesses to rethink their spending on AI infrastructure.
However, analysts like JPMorgan believe that this is not a sign of weaker overall demand for AI servers, but rather a timing issue specific to Super Micro.
The company’s trust with investors has also taken a hit after this news. Earlier in 2025, Super Micro seemed to be recovering, but this update has raised concerns about its future and management’s ability to meet goals. As a result, investors are selling their shares, leading to the stock’s big drop.
The impact on the overall AI data center market has been slight, with related companies like Nvidia seeing only minor dips. Still, Super Micro’s situation highlights the difficulties companies face in uncertain economic times and due to changing policies.
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