Reported 2 months ago
Super Micro Computer reported a quarterly gross margin of 11.3%, falling short of the anticipated 14.1%, leading to a 14% drop in its shares. This decline was further exacerbated by high production costs related to servers equipped with advanced AI chips, amid concerns of rising expenses in building data centers. Despite forecasts for first-quarter and annual sales exceeding estimates, overall profit projections did not meet Wall Street expectations, raising doubts among analysts about the company's ability to effectively scale amidst increasing competition.
Source: YAHOO