Super Micro’s Revenue Warning Sends Ripples Through AI Hardware
Nvidia (NASDAQ:NVDA) shares fell 1.7% in after-hours trading Tuesday following Super Micro Computer’s (NASDAQ:SMCI) preliminary Q3 outlook, which came in well below both its prior guidance and street estimates. Super Micro now expects net sales of $4.5–4.6 billion versus an earlier range of $5–6 billion (consensus $5.41 billion), and non-GAAP EPS of $0.29–0.31 against a prior $0.46–0.52 forecast (consensus $0.54). Delayed platform decisions pushed orders into Q4, and higher inventory reserves on older-generation servers weighed on margins.
Broader Tech Impact: Dell Also in the Red
The setback for Super Micro rippled across the server sector—Dell (NYSE:DELL) slid 4.8% after hours—underscoring how Nvidia’s chip content in AI-optimized hardware ties its fortunes to partner execution. While next-gen design wins remain “robust,” the quarter’s hiccup highlights the seasonal and decision-timing risks in enterprise buying cycles.
Analyst Consensus Still Bullish on Nvidia
Despite the late-day selloff, analysts remain confident in Nvidia’s long-term outlook. According to Financial Modeling Prep’s Price Target Summary API, the consensus 12-month price target for NVDA sits about 20% above its current trading level, reflecting expectations for continued leadership in AI acceleration and data-center expansion.
What to Watch Next
Super Micro’s Q3 call: Look for updated margin commentary and order timing
Nvidia’s guidance: Any revisions in its data-center outlook will be crucial
Sector flow: Tracking AI-server order books and inventory metrics can signal broader hardware demand
By monitoring partner sales trends alongside Nvidia’s own updates—and keeping an eye on evolving analyst targets—investors can better navigate the near-term swings in this fast-moving segment.
