SMCI Revenue Miss and Margin Concerns

3 months ago

Dan Curtis

"Exactly. Another AI related company and this one makes servers uh ticker SMCI. That stock is down nearly 9% in the pre-market. The company reported first quarter revenue of $5 billion. That was well below the 6 to7 billion the company had expected to make. A third of the revenue came from GPU related AI servers, but sales fell 15% from the year prior as some shipments were delayed. The company did raise revenue guidance for its current fiscal year by nearly 10%. That might come with smaller margins as it provides more services for some of its AI mega deals. The outlook for earnings and margins is still murky and the CEO noted on the call that competition in the space remains intense."

SMCI is struggling after reporting a significant revenue miss and a notable pre-market drop of nearly 9%. Although the company raised its annual revenue guidance, weaker margins and intense competition add uncertainty to its outlook.

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