Shares in Super Micro Computer plunged Wednesday as its fiscal 2024 outlook for SMCI stock disappointed some analysts amid buzz over artificial intelligence stocks. The company, however, reported fiscal fourth-quarter earnings and revenue that topped estimates.
For the period ending June 30, SMCI earnings rose 34% to $3.51 per share. That topped analyst estimates of $2.91 a share.
Revenue climbed 32% to $2.18 billion. Wall Street analysts that follow SMCI stock predicted revenue of $1.98 billion.
For fiscal 2024, which starts with the current September quarter, the company forecast revenue of $10 billion. That's 1% above analyst estimates for $9.88 billion.
On the stock market today, though, SMCI stock plunged 23.4% to close at 266.13. The company reported results after the market close on Tuesday.
Collaborating With Other AI Stocks
The San Jose, Calif.-based company released preliminary results on July 20. Supermicro makes computer servers, custom motherboards, networking gear, data storage systems and power supplies used in internet data centers.
Additionally, artificial intelligence software processed in internet data centers is driving demand for high-performance computer and networking gear.
Also, Supermicro has been collaborating with leading AI processor makers like Nvidia and Advanced Micro Devices on their server and storage systems.
SMCI Stock: Record Levels Of Engagements
"Supermicro continues to see record levels of engagements in our new generation product lines, especially for AI applications," Chief Executive Charles Liang said in the earnings release.
He added: "We secured several new and large design wins and are deploying some of the world's most leading GPU clusters. With the recent new key components supply chain challenges mostly in the rearview mirror and production normalizing, we expect to gain share and expand scale."
Before the earnings release, SMCI stock had soared 321% in 2023. The company also is one of several AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
