Super Micro reported a strong Q1 FY2027 with revenue and earnings surpassing expectations, but its stock fell 4% due to worries over shrinking profit margins and heavy reliance on one large AI data center customer. The company raised its full-year revenue outlook but forecasted lower gross margins as AI installations, which have lower margins, make up a larger share of sales. Additionally, voter opposition to new data center construction, especially in Texas, adds uncertainty to future growth. Rival companies Dell and Hewlett Packard Enterprise also saw stock declines, reflecting broader investor caution in the AI server market.
As of Nov 05, 2026 01:01 WIB, Super Micro Computer Inc (SMCI) trades at USD 30.29 on Pluang, down 3.50% for the day with a market cap of $20.62 billion. Dell Technologies (DELL) is also down sharply by 8.23%, priced at USD 374.72, while Hewlett Packard Enterprise (HPE) falls 6.11% to USD 49.83. Notably, Dell has the largest market cap among the three at $259.67 billion, reflecting significant investor caution in this sector.
Super Micro disclosed that a single unnamed customer accounted for 44% of its quarterly revenue, up from 28% the previous year, highlighting significant customer concentration. This customer likely relates to large AI data center projects, possibly l...
Super Micro Computer reported better-than-expected earnings with revenue of $19.9 billion and EPS of $1.81, triggering an initial 11% stock rally. Despite this, Wall Street analysts showed mixed reactions: only one out of five gave a 'Buy' rating, wh...
Super Micro Computer's stock climbed 4% ahead of its Q1 FY2027 earnings report, buoyed by a recovery in AI server stocks and a new strategic partnership with SambaNova to build inference racks combining SambaNova SN50 chips with NVIDIA GPUs. Prelimin...
AI server stocks are falling sharply ahead of key earnings reports, with Super Micro Computer down 5% before its November 3 report. Despite a strong preliminary revenue forecast of $18.5-$19.5 billion, concerns remain about margin pressure, cash flow...
AMD, Arista Networks, and Supermicro are set to report earnings after a tough month that saw their stocks fall sharply due to concerns over AI demand and memory costs. Despite strong year-to-date gains, recent declines have raised questions about the...
