Super Micro Stock Could Erase All of Its 2025 Gains

Super Micro Computer (SMCI) stock is getting slammed after-hours, with SMCI down 16.7% after Tuesday’s close following the company’s preliminary third-quarter fiscal 2025 results. The artificial intelligence (AI) server specialist reduced its expected net sales forecast to $4.5-4.6 billion from the initial $5.0-6.0 billion projection, which Super Micro attributed to "delayed customer platform decisions [that] moved sales into Q4.”

The company's gross margins are also under heavy pressure, down 220 basis points from the previous quarter due to higher inventory reserves and expedited costs for new product launches, with tariff uncertainties contributing to these challenges. SMCI added in a statement that “New generation product design wins are robust,” with full Q3 results expected after the close next Tuesday, May 6.

SMCI Stock Could Test the $30 Level

SMCI is now on pace to test its year-to-date breakeven point around $30 in Wednesday’s session. The lower Bollinger Band is just below, at $29.81. 

Looking back, the AI server stock has lost nearly 60% of its value over the past 52 weeks, largely due to uncertainties over a lengthy delay in filing its 2024 financial statements. 

Speculative Traders Were Bullish

However, the short-term move lower in SMCI may have caught options traders off-guard; in the weekly May 2 options series expiring at this Friday’s closing bell, the put/call ratio on SMCI stock stands at a heavily call-skewed 0.37.

Conversely, Wall Street pros remain skeptical of Super Micro stock. With 16 analysts in coverage, the average rating on SMCI is a “Hold,” which has remained relatively unchanged in recent months.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.