New York, February 9, 2026, 13:58 EST — Regular session
Super Micro Computer dropped roughly 2% Monday, hovering near $33.68 in afternoon action after bouncing between $32.68 and $34.34 earlier. Nvidia shares climbed about 3%. Hewlett Packard Enterprise also finished in positive territory, while Dell barely moved.
Super Micro’s shares have surged thanks to soaring AI server demand, but the core issue hasn’t changed: margins remain tight on every unit sold. Whenever the focus shifts from revenue to spending, traders don’t hesitate—they start selling.
That’s not unusual for this stock. Super Micro rides the AI buildout wave, yet its biggest customers drive tough price negotiations. The company’s also ramping up spending to roll out new platforms quickly.
Super Micro spelled out the tough choices in its latest 10-Q with the U.S. Securities and Exchange Commission. Gross margin slipped sharply, dropping to 6.3% from 11.8% a year ago. The company pointed to a $142 million surge in tariff costs and bigger inventory write-downs, plus “competitive pricing” moves aimed at capturing more market share. Disclosure controls, meanwhile, failed to pass muster—Super Micro cited “material weaknesses” in internal control, warning of gaps that could allow major accounting errors. The remediation plan? Still a work in progress. 1
Supermicro posted fiscal Q2 net sales of $12.7 billion last week, sticking with its optimistic outlook for the full year. The company is projecting at least $40.0 billion in net sales for fiscal 2026. CEO Charles Liang pointed to rapid scaling—Supermicro is ramping up manufacturing to keep pace with expanding AI and enterprise demand. 2
Analysts aren’t doubting the demand side—though margins are another question. “Super Micro’s growth is tied to its importance as the integrator to large cloud and AI customers,” Gadjo Sevilla, technology analyst at Emarketer, told Reuters after the results. CFO David Weigand echoed that order strength “remains strong” among major data center and enterprise clients. 3
The retreat on Monday didn’t scream demand troubles. Instead, it underscored what investors are now waiting for—clear evidence the company can deliver and price these systems without letting margins slip away.
Here’s the simple risk: tariffs, expedited shipping fees, and ongoing inventory clear-outs remain high. Margins are already thin, so if hyperscalers even pause their orders for one quarter, profits could quickly get squeezed.
Competition is a big headache here. Dell and Hewlett Packard Enterprise are getting aggressive with AI servers, while Super Micro is tapping into the same wave of spending.
Coming up next for the company: Feb. 17 marks the record date tied to its April 15 annual meeting, which will be held online. Investors are tuned in for any signals on how margin recovery is shaping up, as well as progress on internal-control fixes in the next round of filings and updates. 4
