Super Micro (SMCI) Tumbles 11% as Q1 Earnings Disappoint

We recently published 10 Stocks Left Behind Amid Wall Street Cheer. Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the worst-performing stocks on Wednesday.

Super Micro extended its losing streak to a third straight day on Wednesday, shedding 11.52 percent to close at $42.03 apiece after announcing disappointing earnings results in the first quarter of fiscal year 2026.

In an updated report, Super Micro Computer, Inc. (SMCI) said its net income fell by 60 percent to $168.28 million from $424 million in the same period last year, as net sales declined by 15 percent to $5 billion from $5.9 billion year-on-year.

Super Micro (SMCI) Tumbles 11% as Q1 Earnings Disappoint

For full-year 2026, Super Micro Computer, Inc. (NASDAQ:SMCI) expects net sales to grow by 64 percent to $36 billion from the $21.97 billion in the full fiscal year of 2025.

In the second quarter alone, net sales are targeted at $10 billion to $11 billion, with GAAP diluted earnings per share of $0.37 to $0.45.

“Powered by DCBBS (Data Center Building Block Solutions), Supermicro is expanding/transforming into a leading AI and datacenter infrastructure company, delivering total solutions that simplify deployment, accelerate time-to-market, and reduce TCO (total cost of ownership),” said Super Micro Computer, Inc. (NASDAQ:SMCI) President and CEO Charles Liang.

While we acknowledge the risk and potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMCI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.