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.

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

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. 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. to $34 from $50 previously.

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

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This article is originally published at Insider Monkey.