Super Micro’s stock dropped 15% in after-hours trading after Q4 revenue and profit came in below expectations.
https://www.reuters.com/business/super-micros-quarterly-revenue-misses-estimates-2025-08-05/
Those results show how fierce competition from bigger server makers like Dell and HP is squeezing margins.
https://www.reuters.com/business/super-micros-quarterly-revenue-misses-estimates-2025-08-05/
Still, Super Micro sees $33 billion in revenue for fiscal 2026, above consensus estimates of about $30 billion.
https://www.reuters.com/business/super-micros-quarterly-revenue-misses-estimates-2025-08-05/
Its stock is not trading at crazy valuations, roughly 16× EV/EBITDA, so there is room to recover if execution stays strong.
Meanwhile, AMD posted $7.7 billion in revenue in Q2, beating forecasts, yet a heavy $800 million charge tied to chip export limits for China dragged on profits.
https://www.investing.com/news/transcripts/earnings-call-transcript-amd-q2-2025-revenue-surges-stock-dips-postearnings-93CH-4171710
Its data-center growth of 14% trails Nvidia and raised concern among investors when shares slipped nearly 3% after reporting.
https://www.investors.com/news/technology/amd-stock-fiscal-q2-2025-earnings/
The big question is whether Super Micro can keep AI demand growing amid supply chain risks and intense pricing pressure, or if margins collapse further. AMD might bounce back, but lingering export blocks and stiff competition mean it is vulnerable too. SMCI looks fairly valued for now and has a chance to recover if it stays nimble. AMD can’t get complacent; slowing demand or lost China exposure could weaken its bounce.
1 view