Super Micro Shares Plunge After Weak Guidance

Shares of Super Micro Computer (SMCI) experienced a 6% dip on Thursday following the release of preliminary results for its fiscal first quarter of 2026 that fell short of previous projections.

The server manufacturer now anticipates reporting revenue of $5 billion for the quarter, a decrease from the initial guidance of $6 billion to $7 billion.

According to Super Micro, the revised forecast is attributed to “design win upgrades” which have shifted some expected first-quarter revenue into the second quarter. This suggests a dynamic market where customers are opting for higher-end configurations, potentially impacting the immediate revenue stream but signifying a longer-term commitment to Super Micro’s advanced server solutions.

“We see customer demand accelerating, and we are gaining AI share, reiterating revenue of at least $33B for FY 2026 with the expectation of delivering more,” stated Super Micro CEO Charles Liang, indicating confidence in the company’s overall performance and positioning within the burgeoning AI infrastructure market. This statement underlines Super Micro’s strategic focus on AI server technology, a sector experiencing exponential growth, and their ability to capture a significant portion of this expanding market.

Super Micro highlighted recent design wins exceeding $12 billion, with delivery slated for the fiscal second quarter. This influx of new orders signals strong market acceptance of Super Micro’s server platforms and their ability to secure large-scale deployments.

The company plans to provide a comprehensive update on expected second-quarter deliveries and revenues during its upcoming earnings call on November 4, when it will formally announce its first-quarter results. Investors and analysts will be closely watching this call for deeper insights into the factors driving the revenue shift and a clearer picture of Super Micro’s future growth trajectory.

From a technical perspective, Super Micro’s situation highlights the complexities of supply chain management and customer demand forecasting in a rapidly evolving technology landscape. The “design win upgrades” suggest potential bottlenecks in component availability or manufacturing capacity, prompting a delay in fulfilling orders with the latest configurations. This underscores the importance of agile supply chain strategies and proactive capacity planning for server manufacturers operating in highly competitive markets.