Shares of Super Micro Computer, which was added to the S&P 500 index in March, sank more than 13% Wednesday morning after the company missed analysts’ revenue expectations for its fiscal third quarter.
In its latest earnings report, the manufacturer of artificial intelligence hardware reported revenues of $3.85 billion, more than double the $1.28 billion from the same quarter last year. But Super Micro Computer it missed Wall Street analysts’ expectations of $3.95 billion. Earnings per share came in at $6.56, beating expectations of $5.78.
“This year-over-year revenue growth of 200% and year-over-year non-GAAP EPS growth of 308% was well above our industry peers,” Super Micro Computer CEO Charles Liang said in a statement.
The San Jose-based company increased its revenue guidance for the year 2024 from $14.7 billion to $15.1 billion, beating analysts’ expectations of $14.60 billion. That’s because AI hardware is in high demand, and Super Micro Computer develops AI servers with the help of chips from Nvidia, Advanced Micro Devices, and others.
Liang said strong demand for AI servers and the company’s innovative liquid-cooling designs are driving its growth.
“As new solutions ramp,” he said, “including fully production-ready DLC (direct liquid cooling), we expect to continue gaining market share.”
