TSX runs higher on rate cut expectations
Investing.com -- Dell Technologies (NYSE:DELL) stock fell 3% Wednesday morning, while Hewlett Packard Enterprise (NYSE:HPE) shares dropped 1.4% following Super Micro Computer’s (NASDAQ:SMCI) disappointing quarterly results and guidance that sent its stock plunging 17%.
Super Micro Computer missed Wall Street estimates for fourth-quarter revenue and profit on Tuesday, signaling potential market share losses to larger competitors like Dell and HPE in the high-performance server market used for AI applications.
The San Jose-based company also issued weaker-than-expected guidance, projecting first-quarter earnings of $0.40-$0.52 per share versus the consensus estimate of $0.59, and revenue of $6-7 billion compared to analysts’ expectations of $6.59 billion.
Super Micro’s fiscal year 2026 revenue forecast of at least $33 billion fell significantly short of its February projection of approximately $40 billion, though it still exceeded the analyst consensus of $29.94 billion.
The contrasting fortunes of the server manufacturers have been evident in recent reports, with Dell raising its annual profit forecast and HPE beating second-quarter revenue and profit estimates, suggesting they may be capturing market share at Super Micro’s expense in the competitive AI server market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.