Shares of Super Micro Computer (SMCI) declined 7.5% to $34.43 in morning trading on Monday, paring gains from a prior rally that had lifted the stock by roughly 60% following its fiscal fourth-quarter earnings release on August 11.
The company reported earnings per share of $1.70, significantly exceeding consensus estimates. However, quarterly revenue totaled approximately $11.12 billion, falling short of Wall Street expectations and landing near the lower end of the company’s guidance range. Super Micro attributed the revenue shortfall to client deployment timing and data center readiness constraints rather than any fundamental demand weakness.
The stock’s decline follows a $7 billion financing package announced in June, which included equity and equity-linked instruments and raised concerns over shareholder dilution. Additionally, an ongoing independent board review into alleged export control issues—linked to prior reports of AI chip shipment investigations—continues to weigh on investor sentiment.
Mizuho maintained a Neutral rating on SMCI, while reducing its price target to $34, aligning with the stock’s current trading level. The broader technology sector faced broad-based pressure, with the Nasdaq Composite falling 0.75% as of midday trading.
