(Bloomberg) — Super Micro Computer Inc. reported quarterly revenue that tripled from the same period last year but fell slightly short of estimates, disappointing investors who had sky-high expectations that the server maker’s business would benefit from AI-related demand would.
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Revenue in the fiscal third quarter ended March 31 rose to $3.85 billion, the company said in a statement on Tuesday. According to Bloomberg, that’s just below the consensus estimate of $3.86 billion. Profit (excluding some items) was $6.65 per share, above the $5.58 expected by Wall Street analysts.
A surge in demand for devices that enable artificial intelligence training and applications has helped boost sales at Super Micro, a maker of data center servers. The San Jose, California-based company’s growth rates have increased in recent quarters due to contracts with major corporations and an improving supply of high-performance chips.
Tuesday’s results weren’t enough to fuel the hype. Shares fell about 13% in extended trading after closing at $858.80 in New York. The company’s value has more than tripled this year and was included in the S&P 500 index. Still, the stock had fallen about 25% from its peak in March after the company announced a stock sale to raise up to $2 billion.
Chief Executive Officer Charles Liang said in the statement that the company “should continue to gain market share” as new products come to market. He added that many of the tools are designed to use Nvidia Corp.’s latest technology. to support.
In a conference call after the results were released, Chief Financial Officer David Weigand said improved supply chains and new products should contribute to strong growth.
A key point of caution for investors is whether Nvidia, the world’s most valuable chipmaker, will dent Super Micro’s sales as the semiconductor giant invests in new businesses, Barclays analyst George Wang wrote in a pre-publication note the Results.
Sales for the quarter ending in June will be between $5.1 billion and $5.5 billion, the company said. Analysts on average forecast $4.73 billion, according to data compiled by Bloomberg. Earnings, excluding some items, are expected to be as high as $8.42 per share, compared with an average estimate of $6.97.
(Updates with CFO comments in sixth paragraph.)
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