Dell and HPE Shares Fall After Super Micro's Weak Earnings Shake AI Server Sector
The San Jose-based AI server player missed both revenue and profit estimates for its fourth quarter. Adding to investor worries, Super Micro issued disappointing guidance for the current quarter, forecasting earnings between $0.40 and $0.52 per share, well below the $0.59 consensus. Revenue guidance landed between $6 billion and $7 billion, again shy of expectations.
Warning! GuruFocus has detected 1 Warning Sign with HLNE.
Even its full-year 2026 revenue outlook, though above analyst targets at $33 billion, represented a sharp drop from its previous $40 billion projection in February. That miss could signal trouble holding market share against larger rivals.
Conversely, Dell has recently projected a higher profitability in the full year and HPE exceeded expectations in the recent quarter both of which indicate that they are absorbing some of the pie of the AI servers market that is normally held by Super Micro. Under the pressure of more intense competition, every one awaits how SMCI would respond to its peer pressure of larger rivals.
This article first appeared on GuruFocus.
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