Why Super Micro Computer Stock Fell 16.7% in August
Nasdaq What happened
Shares of server manufacturer Super Micro Computer (NASDAQ: SMCI) fell 16.7% in August, according to data from S&P Global Market Intelligence.
Super Micro reported fiscal fourth-quarter earnings on Aug. 8, after which the stock sold off about 25%, before recovering with a lot of other tech stocks toward the month's end.
But aside from a somewhat conservative near-term guide, which seemed entirely due to supply constraints in Nvidia AI chips, there really wasn't much wrong with the report.
One insider apparently thought the sell-off was undeserved, and bought over $1 million of the stock on the dip.
So what
Super Micro had already previewed results well above what it had guided for in May, but its fourth-quarter numbers came in even better. Revenue surged 33% to $2.18 billion, and adjusted earnings per share of $3.51 were up 34%, trouncing expectations by $0.60.
But the stock had already more than tripled since its prior report, and apparently investors took its somewhat soft September quarter guidance as an excuse to take profits. For the upcoming quarter, Super Micro only guided for $1.8 billion to $2.2 billion in revenue and $2.75 to $3.50 in adjusted EPS, which would indicate a flattish-to-down sequential growth.
