Super Micro Computer Inc. (NASDAQ:SMCI) shares are falling Monday, a day ahead of its fiscal first-quarter earnings report, as concerns about AI spending weigh on data center stocks.
- Super Micro Computer stock is showing notable weakness. Why is SMCI stock dropping?
Super Micro Stock Falls Ahead of Earnings
The earnings report is due after the market closes on Tuesday, November 3. Wall Street projects earnings of $1.23 per share on revenue of $16.39 billion.
AI worries may be part of the story. Bubble fears hit data center stocks Monday even as the broader market rose, and Friday’s earnings misses from Amazon and Intel deepened concerns about AI infrastructure spending.
What Super Micro Reported Last Quarter
Super Micro’s August report gave investors a mixed picture. Profit of $1.70 a share beat the 62-cent estimate by a wide margin. Analysts had expected $12.33 billion in sales, but Super Micro reported $11.12 billion. A year before, the figure was $5.76 billion, so sales nearly doubled.
CEO Charles Liang said the past year brought hundreds of new customers, enterprise businesses among them, and over $60 billion of new orders. That left Super Micro with the biggest backlog in its history as fiscal 2027 began. Liang added that selling more to enterprise customers, and getting more buyers to adopt its modular data center designs, is lifting profitability.
What a Beat or Miss Would Mean for Super Micro
Super Micro told investors last quarter to expect an adjusted first-quarter profit between $1.01 and $1.10 a share and sales between $14.5 billion and $15.5 billion. Analysts are asking for more. Their $1.23 profit estimate sits 13 cents above the top of that range, and their $16.39 billion sales estimate sits $890 million above it.
Results above the estimates would show demand outrunning even that guidance and could extend the earnings beat. Results below them would count as a miss, even if they land inside Super Micro’s own range. A sales shortfall would also repeat last quarter’s pattern.
SMCI Shares Are Slipping
SMCI Price Action: Super Micro shares were down 7.28% at $30.56 at the time of publication on Monday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
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