Super Micro Computer Stock Plummets 16% After Disappointing Earnings 🚨

Super Micro Computer shares fell 16.64% in after-hours trading Tuesday after the company issued weaker-than-expected preliminary third-quarter results. Revenue is projected between $4.5 billion and $4.6 billion, below its prior forecast of $5 billion to $6 billion. Adjusted earnings are now expected between 29 and 31 cents per share, down from a previous range of 46 to 62 cents. The company cited delayed customer decisions pushing sales into the fourth quarter and noted a 220 basis point drop in gross margin from the previous quarter due to inventory reserves and expedite costs. Super Micro highlighted strong demand for new product designs as a positive note. The report also pressured shares of other chip companies in after-hours trading. Final results will be released on May 6th.