SMCI: Super Micro Shares Sink 13% on Big Earnings Miss, 10-for-1 Stock Split

Yet another AI play — after chip giant Nvidia — to announce a share chop in bid to make its stock more attractive and affordable to traders.

• Super Micro Computer stock SMCI plunged 13% in pre-market trading after a wide miss on earnings figures. The server maker posted earnings of $6.25 a share against $8.07 expected. Revenue landed just above analysts’ consensus calls at $5.31 billion against $5.30 billion. Super Micro wrapped up its fiscal fourth quarter with an 11.2% drop in gross margin, down from 17% in the year-ago quarter, realizing less profits on each product sold.
• Net income arrived at $353 million from $402 million in the previous three months and $194 million in the same time span last year. “Super Micro continues to experience record demand for new AI infrastructures propelling fiscal 2024 revenue up 110% year over year to $14.9 billion and non-GAAP earnings per share up 87% to $22.09,” said Charles Liang, President and CEO of Super Micro.
• Super Micro, which builds AI servers to sell to chip giant Nvidia, announced a 10-for-1 stock split in a bid to make its shares more affordable to wider audiences, including retail traders. Starting October 1, one share will be broken down to 10, slashing the price 10 times in the process. The stock split, which doesn’t change anything but make shares cheaper, follows Nvidia’s stock split in early June.