Super Micro Retail Traders Shrug Off Last Week’s Guidance Cut, Stay Optimistic Ahead Of Q3 Earnings Call

Shares of Super Micro Computer, Inc. (SMCI) have shed over 10% since April 29, when the artificial intelligence (AI) server maker pre-announced a third-quarter shortfall.

The San Jose, California-based company has scheduled a conference call to review the financial results for the third quarter of the fiscal year 2025 at 5 p.m. ET on Tuesday.

It was not immediately clear whether the company would put out a press release for the same.

Last week, Super Micro reduced its third-quarter net sales and adjusted earnings per share outlook, with the new guidance falling notably below the consensus.

The company blamed the anticipated shortfall on delays in customer platform decisions, which moved sales to the fourth quarter.

It also reduced its gross margin outlook, blaming the action on higher inventory reserves resulting from older generation products and higher costs to enable time-to-market for new products.

Following the guidance cut, Super Micro’s stock attracted several price target cuts, The Fly reported. 

While lowering the stock price target to $36 from $39, JPMorgan analysts said they were cautiously moderating their fourth-quarter expectations, given the limited visibility into Super Micro ability to catch up in the next quarter.

The analysts, however, said they did not see the pre-announcement as a representative of any industry-wide demand slowdown or supply headwind.

JPMorgan has a ‘Neutral’ rating on the Super Micro stock.

An ongoing Stocktwits poll on Super Micro ahead of the earnings in light of the pre-announcement has received over 4,300 votes.

A majority (64%) were bullish on the stock, while 19% said they were bearish. The proportion of the respondents who were unsure was 13%. A far less 4% said the company will meet the deadline.

Retail sentiment toward the Super Micro stock was ‘bullish’ (68/100) by late Monday and the message volume was ‘high.’

A bullish watcher hoped for a good report that could send the stock back toward the $120 level.

Another user said the company needs to raise the fourth-quarter guidance, guide the fiscal year 2026 revenue guidance to more than $40 billion, and increase margin outlook as well.

Super Micro stock ended Monday’s session down 4.57% at $32.178 and yet is up about 6% this year.

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