Why is SUPER MICRO COMPUTER STOCK

• Investors who thought Super Micro Computer was back on the court received some amazing news last night.

• The company said that lost sales in the latest quarter were due to clients who delay purchasing decisions.

• The last announcement seems to have prejudiced the credibility of the management with the investors.

Super Micro Computer (NASDAQ: SMCI) It has had a turbulent year. After meeting accounting questions, replacing his auditor and avoiding the list of his actions, the High-Gamma Artificial Intelligence (AI) and high-ends server maker seemed to be re-launching this year.

A business update provided by the company yesterday, however, says the opposite. Investors are by pouring Supermicro actions Today as a result. The action crashed up to 20% from Wednesday morning. From 11:30 am, shares remained below 16% and more than 50% of maximum maximum.

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After delays in requirements Commission of Securities and Exchange (Sec)Supermicro regained compliance in February and avoided the misfortune of his stock stock stock. At that time, the company also reduced revenue guidelines for its third quarter 2025, ended on March 31 and for the full financial year. The investors reacted positively, as Supermicro seemed to be on the road again and could begin to focus on their business.

The company then dropped a bomb last night. Management reduced sales guidelines for the third quarter from a midpoint of $ 5.5 billion to $ 4.55 million. The estimates of clean income were also reduced.

The company said that some sales were traced to the fourth quarter by customers who delayed purchase decisions and reduced the orientations of the bottom line “mainly due to the highest inventory reserves derived from older generation products and expenses for expulsion.” The company plans to inform the quarter of May 6.

There are two potential explanations for decrease. In fact, customers can promote the investments of the data center for the power of the IA in the midst of the uncertain tariff environment. Customers can also move to competitors’ offers as tastes Dell Technologies and Hewlett Packard Enterprise. Both possibilities are bad news for supermico.

Investors are selling actions in current drinks, either due to the lost faith in management, the concern that the commercial perspectives of Supermicro are slipping or a combination of both. Regardless, there is no good case to buy supermico actions after its disappointing business update.