Shares of Super Micro Computer, which was added to the S&P 500 index in March, sank more than 13% Wednesday morning after the company missed analysts’ revenue expectations for its fiscal third quarter.
The AI company's stock quickly fell 13% following its quarterly earnings release
Shares of Super Micro Computer, which was added to the S&P 500 index in March, sank more than 13% Wednesday morning after the company missed analysts’ revenue expectations for its fiscal third quarter.
In its latest earnings report, the manufacturer of artificial intelligence hardware reported revenues of $3.85 billion, more than double the $1.28 billion from the same quarter last year. But Super Micro Computer it missed Wall Street analysts’ expectations of $3.95 billion. Earnings per share came in at $6.56, beating expectations of $5.78.
“This year-over-year revenue growth of 200% and year-over-year non-GAAP EPS growth of 308% was well above our industry peers,” Super Micro Computer CEO Charles Liang said in a statement.
The San Jose-based company increased its revenue guidance for the year 2024 from $14.7 billion to $15.1 billion, beating analysts’ expectations of $14.60 billion. That’s because AI hardware is in high demand, and Super Micro Computer develops AI servers with the help of chips from Nvidia $NVDA, Advanced Micro Devices, and others.
Liang said strong demand for AI servers and the company’s innovative liquid-cooling designs are driving its growth.
“As new solutions ramp,” he said, “including fully production-ready DLC (direct liquid cooling), we expect to continue gaining market share.”
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