(Reuters) – AI Server Maker Super Micro Computer cut expectations for third-quarter revenue and profits amid the global trade war on Tuesday, blaming delays in customer spending, reducing stocks by more than 16% in expanded trading.
Super Micro’s Dour forecast is out of widespread concern that spending on AI links has fallen back in the context of widespread global tariffs by U.S. President Donald Trump.
The San Jose, California-based company produces high-performance servers that include chips from AI leader Nvidia and rival AMD to use them in data centers that support intensive AI applications.
The company said the delayed “customer platform decision” shifted sales to the fourth quarter.
TD Cowen analysts said last month that Microsoft abandoned its project to use 2 GW in the U.S. and Europe over the past six months due to oversupply.
Super Micro now expects revenue to be between $4.5 billion and $4.6 billion, lower than its early expectations of $5 billion to $6 billion.
The company lowered its expectations for adjusted quarterly profits to the range of 29 cents to 31 cents per share, which is greater than earlier expectations for profits of 46 cents to 62 cents per share.
It fixes the grim profit figures at higher stock levels of old products.
Strong spending on expanding infrastructure to support the booming generative AI technology has led to dazzling rallyings in technology stocks over the past two years and has now shown signs of slowing down.
Super Micro has become a key champion in AI-oriented stocks’ rise, with its stock growing by more than 250% in 2023 and mid-2024.
In February, Super Micro finally submitted its annual report for the fiscal year ending June 30, 2024, thus saving it from potential recommendations after a series of accounting issues and short seller Hindenburg Research alleges “accounting manipulation”.
(Reported by Arsheeya Bajwa in Bangalore; Editor of Alan Barona)
