Why Super Micro Computer Inc. (SMCI) Went Down On Wednesday

We recently published a list of These 10 Firms Were Battered by Dismal Earnings, Outlook Guidance. In this article, we are going to take a look at where Super Micro Computer Inc. (NASDAQ:SMCI) stands against other worst-performing stocks on Wednesday.

A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy’s contraction in the first quarter of the year, triggering fears of recession.

Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent.

Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year.

In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

A team of technicians in a server room, testing and managing the newest server solutions.

Super Micro Computer Inc. (NASDAQ:SMCI)

Super Micro dropped its share prices by 11.5 percent on Wednesday to finish at $31.86 apiece as investor sentiment was dragged down by its dismal preliminary earnings results in the third quarter of fiscal year 2025.

In a statement, Super Micro Computer Inc. (NASDAQ:SMCI) said that it expects net sales to settle between $4.5 billion and $4.6 billion in the said period, markedly lower than the $5 to $6 billion targeted previously.

Diluted net income per share was pegged at between $0.16 and $0.17 versus the $0.36 to $0.53 prior guidance.

The company said official figures will be announced after market close on Tuesday, May 6, 2025.

Following the announcement, investment firm Mizuho Securities cut its price target for Super Micro Computer Inc. (NASDAQ:SMCI) to $34 from $50 previously.

However, Mizuho acknowledged the company’s continued role as a key player in the artificial intelligence server space.

Overall, SMCI ranks 2nd on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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