New York, February 5, 2026, 15:41 EST — Regular session underway.
- Shares of Super Micro fell about 10% on Thursday, erasing part of the rally from Wednesday
- The company bumped up its fiscal 2026 revenue forecast to at least $40 billion, even as margins remain tight
- With worries mounting over AI expenditures in the sector, investors are zeroing in on profitability more than ever
Super Micro Computer (SMCI.O) shares fell about 10%, sliding to $30.36 by Thursday afternoon after opening at $33.01 and hitting a high near $34 earlier in the session. Nvidia (NVDA.O) dipped roughly 1%, while Advanced Micro Devices (AMD.O) plunged around 5% as AI hardware stocks swung wildly.
The pullback takes back part of Wednesday’s 13.8% jump, sparked by investors piling into Super Micro following its raised annual revenue forecast, driven by strong demand for AI-optimized servers. The stock has become a proxy for risk appetite tied to the AI rollout—and it’s reflecting that mood.
Alphabet’s plan to spend up to $185 billion on capital projects—mainly data centers—is running into skepticism. Doubts are growing over whether the AI-fueled investments will pay off in the near term. “We’re seeing this volatility about whether this investment will translate, ultimately, into results,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management. Reuters
Super Micro boosted its fiscal 2026 revenue outlook to at least $40 billion from $36 billion on Tuesday, citing sustained demand as customers expand data center capacity. The company posted second-quarter revenue of $12.68 billion, surpassing the $10.23 billion average estimate from LSEG. Roughly $1.5 billion of that came from shipments delayed in Q1 due to customer readiness issues. It projects third-quarter revenue near $12.3 billion. “Super Micro’s growth is tied to its importance as the integrator to large cloud and AI customers,” said Gadjo Sevilla, a technology analyst at Emarketer. CFO David Weigand noted on the earnings call, “Order strength remains strong.” Reuters
The quarter beat expectations, but profit margins slipped where it counts. Gross margin — the portion of revenue left after hardware and component costs — fell to 6.3% from 9.3% in the previous quarter, the company said. Net income came in at $401 million, or $0.60 per share. By the end of December, cash and equivalents totaled $4.1 billion, while bank debt and convertible notes stood at $4.9 billion. For the quarter ending March 31, the company forecasts net sales of at least $12.3 billion.
Super Micro released its results in a Form 8-K dated Feb. 3, including the press release as an exhibit. The filing specified the information was “furnished” instead of “filed” for legal reasons, unless the company states differently. SEC
Thursday’s slide underscores how margins are still front and center. Moving huge volumes of servers is one thing; turning a profit on each is another. That’s particularly true as rising component costs, shifting customer demand, and pricing pressure all converge.
Super Micro sits deep in the supply chain, assembling systems packed with Nvidia and AMD chips for cloud and enterprise customers. That spot can boost profits sharply when demand spikes, but it also raises the stakes when investors start doubting the actual payoff from all the spending.
The risks are glaring. Gross margins linger in the mid-single digits, so tariffs, climbing facility expenses, or parts shortages could rapidly eat into profits. Add delayed orders or shipments pushing into different quarters, and the strain intensifies.
Traders are focused on Amazon’s earnings report after the bell, searching for fresh insights into AI data-center investment. At the same time, they’ll watch to see if Super Micro can stabilize its margins for the quarter ending March 31.
