Why Super Micro Computer Stock Is Plummeting This Week

Super Micro Computer (NASDAQ: SMCI) stock has seen big sell-offs this week. The company's share price was down 10.3% from last week's market close heading into the start of trading this Friday. Across the same period, the S&P 500 was up 1.4%.

After the market closed on Tuesday, Supermicro published preliminary results for the third quarter of its 2025 fiscal year -- which ended March 31. The company issued substantial downward performance revisions, and investors sold out of the stock in response.

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Supermicro stock stumbles on soft fiscal Q3 targets

Supermicro is scheduled to report its fiscal Q3 results after the market closes on May 6, but the company updated investors on what to expect earlier this week. It now expects revenue to come in between $4.5 billion and $4.6 billion. Previously, the company had guided for sales to be between $5 billion and $6 billion in the period. Management also now expects non-GAAP (adjusted) earnings per share for the period to be between $0.29 and $0.31 -- down from its previous guidance for earnings per share between $0.46 and $0.62.

What's next for Supermicro?

Supermicro's Q3 guidance update this week raised questions about whether demand for artificial intelligence (AI) servers is weakening. On the other hand, the company attributed its big downward guidance revisions to customer orders being pushed further out. Shipment delays for the Nvidia Blackwell processors that are at the heart of Supermicro's newest servers may have played a major role in the disappointing Q3 guidance.

Strong quarterly reports and capital expenditures updates from Microsoft and Meta Platforms earlier this week suggest that AI infrastructure spending remains high, and it's possible that Supermicro will wind up seeing very strong sales in the current quarter following delayed orders in Q3. Investors should get a closer look at the outlook when the company publishes its fiscal Q3 results next week.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.