Ultramicro computer performance forecast is far lower than expected, and it once plunged 20% after the market, dragging down Nvidia and Dell

Source: Wall Street News

After the U.S. stock market on Tuesday, server manufacturer Super Micro Computer released preliminary results for the third quarter, with data lower than analysts' expectations, and the stock price plummeted after the market.

Main financial data:

The preliminary adjusted EPS data for the third quarter was $0.29-0.31, far below analysts' expectations of $0.53.

Revenue is $4.5 billion to $4.6 billion, and expected to be $5.35 billion.

According to the company's statement, for the quarter ended March 31, Supermicro Computer lowered its previously provided performance guidance. The new revenue range means a year-on-year growth of 18%, far lower than the 200% growth level a year ago.

In a statement, Supermicro Computer said that during the third fiscal quarter, some sales were delayed to the fourth fiscal quarter due to delays in decision-making by some customer platforms. In addition, the company is also facing the impact of increasing inventory of old products and expedited expenses. These two factors have caused the initial gross profit margin of ultramicrocomputers to narrow by 220 basis points compared with the previous quarter.

Analysis pointed out that the early issuance of performance warnings is another blow to Ultramicro Computer in recent years. Over the past year, the company has been plagued by delays in financial reporting and negative reports from short-selling institutions.

In February this year, Supermicro Computer submitted financial reports for the first two quarters of fiscal year 2024 and fiscal year 2025 in a timely manner, avoiding being delisted before the Nasdaq deadline. And last year, the company lost its audit agency Ernst & Young due to the delay in submitting its annual report, because of governance issues. In November last year, the company appointed Dehao Accounting Firm (BDO) as its new auditing agency.

2023 is the highlight of Ultramicro Computers. Due to the AI boom and the sale of a large number of servers equipped with Nvidia chips, its stock price once rose to more than triple. However, in the second half of 2024, the company's stock price fell sharply, and its market value evaporated by more than 80%.

"If the supply chain can keep up with demand, we are confident that the full-year growth in 2025 can be reproduced or even surpassed 2023," Liang Jianhou, CEO of Ultramicro Computer, told analysts on a conference call in February this year.

Super Micro Computer's stock price plunged 20% after trading on Tuesday. Dragged by its performance, the share price of server competitor Dell fell nearly 5% in after-hours trading, HP fell about 2% after-hours, and Nvidia fell 2.9% after-hours trading.

Prior to Tuesday's announcement, Supermicro Computer's stock price had risen 18% in 2025, while the overall technology sector generally fell during the same period.

Ultramicro Computer will hold a conference call at 5 p.m. Eastern Time on Tuesday, May 6, to further communicate with analysts about its performance.

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