Supermicro Shares Tumble 18.29% on Earnings Disappointment Hit 10th in Trading Volume with $5.34B

Super Micro Computer (SMCI) fell 18.29% on August 6, with a trading volume of $5.34 billion, a 92.84% increase from the previous day, ranking it 10th in market activity. The decline followed a weak quarterly earnings report and revised guidance, which disappointed investors. The company reported adjusted EPS of $0.41 and revenue of $5.76 billion, both below estimates. Supermicro also cut its Q1 2026 earnings forecast to $0.40–$0.52 per share, significantly lower than the $0.602 consensus. Margins contracted to 9.5% year-over-year, attributed to low-margin hyperscale sales and tariff-related costs. Analyst reactions were mixed, with some citing AI-driven demand as a long-term opportunity, while others highlighted near-term risks.

Despite the earnings miss, some analysts remain cautiously optimistic. Needham & Company raised its price target to $60, citing sustained AI infrastructure demand, while JPMorgan reduced its target to $45, reflecting limited short-term upside. The sell-off has drawn attention as a potential buying opportunity for investors focused on AI growth, though near-term uncertainty persists due to guidance cuts and margin pressures. Supermicro’s shares had surged nearly 90% this year prior to the recent decline, driven by a recovery from Nasdaq delisting risks.

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