Post by : Badri Ariffin

Super Micro Computer’s stock slid more than 9% in premarket trading on Wednesday after the AI-focused server maker reported quarterly results that fell short of expectations, blaming delivery delays tied to late-stage design adjustments.

The company said "design win upgrades" shifted nearly $1.5 billion in anticipated first-quarter revenue into the current quarter after a large customer requested changes to GPU rack configurations. CEO Charles Liang said the "complexity of the new GPU racks" required additional integration and testing time.

Super Micro is a prominent supplier of high-performance servers used by large-scale data centres and has been a key participant in the AI hardware surge. Its close ties with Nvidia have enabled it to be among the early adopters for new GPU platforms, including systems built around the Blackwell Ultra series, helping build an order backlog around $13 billion.

Despite the setback, management raised its full-year revenue outlook to at least $36 billion, up from a prior $33 billion projection, indicating confidence in continuing demand. The company also set second-quarter revenue guidance of $10 billion to $11 billion — well above Wall Street’s estimate near $7.83 billion.

Super Micro’s stock has climbed about 56% so far this year, driven by investor interest in AI growth stories. Nonetheless, analysts caution that the firm's aggressive pricing strategy and slim margins could become a concern as competition in AI server markets heats up.

While near-term execution risks dented this quarter’s results, Super Micro’s substantial order book and strategic position in AI infrastructure keep the company squarely in focus for investors and industry observers alike.

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