Server manufacturer Super Micro Cuts Quarterly Forecasts, which concerns AI expenses

(Reuters) -AI -Server Manufacturer Super Micro Computer Tuesday reduced expectations for the third -quarter revenue and profit, blaming a delay in spending customer spending and senting shares by more than 16% in prolonged trading. Super Micro’s Dour forecast comes amid widespread concerns about a retreat in AI-linked spending against the backdrop of a deteriorating economic outlook as a result of US President Donald Trump’s global rates. The company in San Jose, California, makes high-performance servers with chips of artificial intelligence leader Nvidia and rival AMD to use it in data centers that support intensive AI applications. Delayed “customer platform decisions” moved sales in the fourth quarter, the company said. TD Cowen analysts said last month that Microsoft has abandoned two Gigawatts of electricity in the US and Europe for the past six months due to an oversupply. Super Micro now expects revenue in a range of $ 4.5 billion to $ 4.6 billion, lower than its earlier expectations from $ 5 billion to $ 6 billion. The company has cut its expectations for adjusted quarterly profits to a series of 29 cents to 31 cents per share, a huge take away from its earlier expectations for profit between 46 cents and 62 cents per share. This has pinned the grim profit rates over higher stock levels of older products. A robust spending on the expansion of infrastructure to support the booming generative AI technology has been responsible for a dizzying rally in technical stocks over the past two years, which has now shown signs of slowdown. Super Micro emerged as an important winner of an increase in AI shares, with its share achieving more than 250% over 2023 and 2024. In February, Super Micro finally submitted its long-term annual report for the fiscal year ended 30 June 2024, which saved it from a possible exemption from a litany of accounting expenses and the short seller Hindenburg research’s appointment of a ‘calculation’. (Reporting by Arsheya Bajwa in Bengaluru; Editing by Alan Barona) First Published: 30 Apr 2025, 02:38 am Ist