Shares of Dell Technologies (NYSE:DELL) slipped 3% in early trading Wednesday, while Hewlett Packard Enterprise (NYSE:HPE) also declined 1.4%, following a sharp selloff in Super Micro Computer (NASDAQ:SMCI) after the company posted disappointing earnings and forward guidance.
Super Micro shares plunged 17% after it fell short of Wall Street expectations for both revenue and earnings in its fiscal fourth quarter. The underwhelming performance has raised concerns about the company’s position in the high-performance server space, particularly as larger players like Dell and HPE appear to be gaining traction in the competitive market for AI-optimized systems.
The California-based server maker also issued guidance that fell below analyst projections. For the upcoming quarter, Super Micro expects earnings per share to range between $0.40 and $0.52, well below the consensus estimate of $0.59. Revenue guidance was set between $6 billion and $7 billion, missing the average forecast of $6.59 billion.
Additionally, the company trimmed its fiscal 2026 revenue outlook to at least $33 billion, down significantly from the $40 billion estimate provided earlier this year. However, that revised figure still came in ahead of analysts’ consensus forecast of $29.94 billion.
Recent trends suggest a possible shift in market momentum, with Dell having recently raised its full-year profit outlook and HPE reporting better-than-expected results for its fiscal second quarter. These developments hint that both companies may be picking up share in the AI server segment at Super Micro’s expense.
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Super Micro Computer stock price
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