(Bloomberg) — Super Micro Computer Inc. reported quarterly revenue and profit that missed analysts’ estimates, outweighing an annual sales outlook that was billions above Wall Street projections.
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Profit, excluding some items, was $6.25 a share throughout the period ended June 30, the company said Tuesday in an announcement. That’s wanting Super Micro’s previous forecast and the $8.25 average analyst estimate. Sales were $5.31 billion, compared with a median projection of $5.32 billion, in step with data compiled by Bloomberg.
A jump in demand for the equipment that powers artificial intelligence training and applications has helped drive sales at San Jose, California-based Super Micro, which makes data center servers. “We’re well-positioned to grow to be the largest IT infrastructure company,” Chief Executive Officer Charles Liang said throughout the statement.
The company forecast revenue of $26 billion to $30 billion throughout the fiscal yr ending June 30, 2025. Analysts, on average, estimated $23.6 billion.
Still, investors are fearful regarding the longer-term profitability of AI-optimized servers sold by firms like Super Micro, Dell Technologies Inc., and Hewlett Packard Enterprise Co., said Woo Jin Ho, an analyst at Bloomberg Intelligence. Super Micro missing its own profitability targets throughout the recent quarter will likely fuel these anxieties, he said.
The shares first jumped as much as 18% in prolonged trading on the forecast, before reversing and dropping about 8% at 4:55 p.m. in Recent York. The stock earlier closed at $616.94.
For more: Big Tech Fails to Persuade Wall Street That AI Is Paying Off
Super Micro also announced a 10-for-1 stock split, with trading starting Oct 1. The shares have greater than doubled in value this yr and been added to the S&P 500 and Nasdaq 100 indexes following increased demand for servers. Still, the stock has declined about 48% from a peak in March.
(Updates with additional context throughout.)
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