Core Insights - Super Micro Computer (NASDAQ: SMCI) has experienced a significant decline in share price, dropping 20% in the last week despite a year-to-date increase of 37% due to its AI rack solutions [1] Financial Performance - Sales decreased by 15% year-over-year, totaling $5 billion [2] - Net income fell by 60%, down to $168 million from $424 million in the same quarter last year [2] - Diluted earnings per share were reduced to $0.26 from $0.67 a year ago, missing analysts' expectations of $0.40 [3] Margin Analysis - Gross margin decreased from 13.1% to 9.3% year-over-year, with management anticipating further declines due to increased costs from a significant design win [4] Market Context - The company has benefited from the AI boom by delivering servers with Nvidia's processing units, but faces intense competition and market share losses impacting recent results [4]

Market Overview - The US stock market saw slight gains on Wednesday, with the S&P 500 index rising by 0.37% to 6796.29 points, the Nasdaq Composite increasing by 0.65% to 23499.8 points, and the Dow Jones Industrial Average up by 0.48% to 47311 points [1]. Economic Indicators - Following sharp questioning of Trump's tariffs by the US Supreme Court, traders reduced the probability of a government victory in the market [4]. - Ford and General Motors, as economic indicators, both rose over 2%, while Caterpillar saw an increase of nearly 4% [4]. Technology Sector - AI concept stocks experienced a turnaround, with AMD rebounding after an initial drop, and companies like Broadcom, Google, and Oracle also seeing gains [5]. - Micron Technology surged by 8.93%, reaching a historical high, driven by rumors of rising HBM4 chip prices. Other storage stocks like Seagate and SanDisk also rose over 10% [6]. - However, not all AI stocks rebounded; AMD's competitor, Supermicro, fell over 11%, and Arista Networks dropped nearly 9% [7]. Stock Performance - Notable stock performances included Nvidia down 1.75%, Apple up 0.04%, Microsoft down 1.39%, Google-C up 2.41% (hitting a historical closing high), Amazon up 0.35%, and Tesla up 4.01% [8]. Renewable Energy Sector - Solid Power's stock surged by 51.56% after a favorable earnings report, while SolarEdge rose by 28.91%, boosting the battery storage and solar panel sectors overall [9]. Chinese Stocks - The Nasdaq Golden Dragon China Index saw a slight increase of 0.15%. Key performances included Alibaba up 0.32%, JD.com up 0.69%, and Pinduoduo up 1.87%, while NIO fell by 3.97% [10].

Core Insights - Seagate Technology achieved the best performance among S&P 500 stocks, with shares surging 10.1% after announcing a deal to exchange $500 million in debt for cash and stock, benefiting from strong demand in AI infrastructure [1][5][9] Company Performance - Seagate's rival, Western Digital, also saw a share increase of 5.2% following Seagate's announcement, indicating a positive trend in the data storage sector [5] - Johnson Controls reported better-than-expected revenue and adjusted earnings per share for Q3, with shares jumping 8.8% due to growth in various regions, despite challenges in Asia-Pacific [7] - Zimmer Biomet Holdings experienced a significant decline, with shares plunging 15.2% after missing quarterly sales forecasts and lowering its 2025 organic sales growth outlook [10] - Super Micro Computer's shares fell 11.3% after missing sales and profit estimates, attributed to changes in delivery schedules for major AI deals [11] - Live Nation Entertainment's shares tumbled 10.6% due to lower-than-expected adjusted profit for Q3, despite revenue growth from live events [12] Market Trends - Major U.S. equity indexes gained ground, with the S&P 500 up 0.4%, the Dow up 0.5%, and the Nasdaq up 0.7%, following positive ADP payroll data indicating a return to private-sector job growth [3][4] - Other AI-exposed stocks, including Micron Technology, saw gains, with Micron's shares increasing by 8.9% after recovering from previous losses [6]

Core Viewpoint - Stocks experienced notable movements influenced by the Supreme Court's skepticism regarding President Trump's tariffs and a stronger-than-expected U.S. jobs market reading [2][3]. Company Summaries - **Advanced Micro Devices (AMD)**: Reported better-than-expected third-quarter earnings and revenue, with data-center revenue increasing by 22% to $4.3 billion. The company anticipates fourth-quarter revenue of approximately $9.6 billion, exceeding analysts' expectations of $9.2 billion [3][5]. - **Arista Networks**: Experienced an 8.6% decline despite reporting third-quarter adjusted earnings that surpassed expectations. Revenue rose by 27% to $2.31 billion, but the fourth-quarter sales guidance of $2.3 billion to $2.4 billion fell short of projections [4][5]. - **Super Micro Computer (SMCI)**: Saw an 11% drop after reporting weaker-than-expected fiscal first-quarter earnings and revenue, along with mixed guidance for the current quarter [6][5]. - **Pinterest**: Plummeted by 22% following weak third-quarter earnings and disappointing fourth-quarter revenue guidance, although adjusted EBITDA outlook met Wall Street expectations [6]. - **Axon Enterprise**: Dropped 9.4% after reporting a third-quarter loss, with adjusted earnings of $1.17 per share missing analysts' expectations of $1.52. The company announced an acquisition of Carbyne valued at $625 million [7]. - **Novo Nordisk (NVO)**: Lowered its growth outlook due to competitive pressures from copycat versions of its weight-loss drugs, now expecting operating profit growth of 4% to 7% and sales growth of 8% to 11% [8]. - **Humana (HUM)**: Reported third-quarter adjusted earnings of $3.24 per share, exceeding analysts' estimates of $2.93. However, the stock declined by 6% after the company lowered its full-year guidance [9]. - **Rivian Automotive**: Gained 23% despite a wider-than-expected third-quarter loss, reporting a gross profit of $24 million against analysts' expectations of a $64 million loss [10]. - **McDonald's**: Rose by 2.2% after third-quarter adjusted earnings slightly missed estimates, with same-store sales increasing by 2.4% in the U.S. and 3.6% globally [10]. - **Zimmer Biomet**: Was the worst performer in the S&P 500, with a 15% decline following weaker-than-expected quarterly sales [11]. - **Trex**: Dropped 31% after reporting weaker-than-expected quarterly sales and earnings, along with slashed guidance for 2025 and 2026 [11]. - **Kratos Defense & Security Solutions**: Fell 14% after issuing fourth-quarter sales guidance that missed analysts' estimates [11]. - **Lumentum Holdings**: Gained 24% after posting fiscal first-quarter earnings and revenue that beat forecasts, along with strong revenue guidance for the second quarter [12].

Core Insights - The article discusses the role of James Foord as an economist and his leadership in The Pragmatic Investor, which focuses on building diversified investment portfolios to preserve and increase wealth [1] Group 1: Company Overview - The Pragmatic Investor is an investing group that covers various sectors including global macro, international equities, commodities, technology, and cryptocurrencies [1] - The group aims to guide investors of all levels through features such as a dedicated portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for discussions [1]

Super Micro Computer (SMCI) shares tumbled as much as 10% on Nov. 5 after the artificial intelligence (AI) server specialist reported its lowest-ever gross margin at 9.3%. Investors bailed on SMCI stock today also because the company missed analysts estimates on both top and the bottom line in its fiscal first quarter. More News from Barchart Following the post-earnings plunge, Supermicro shares are down some 30% versus their July high. www.barchart.com Is Now the Time to Sell the Rip in SMCI Stock? ...

Core Viewpoint - Super Micro Computer (SMCI) experienced a significant decline in stock price following disappointing fiscal first-quarter results, raising concerns about profitability despite strong demand for AI hardware [1][5]. Financial Performance - The company reported revenue of $5.02 billion, falling short of the $5.80 billion expected by analysts, marking a 15% decrease from $5.94 billion a year earlier [3][5]. - Adjusted earnings per share were $0.35, missing forecasts of $0.39, indicating the sixth consecutive quarter of earnings shortfalls [3][5]. - Net income nearly halved to $168.3 million from $424.3 million, reflecting significant margin pressures [5]. Market Context - Super Micro has been a key player in the AI boom, particularly benefiting from high-performance servers paired with Nvidia GPUs, but growth momentum has recently slowed [6]. - Competitors like Dell are reportedly gaining market share as Super Micro's growth flattens [6]. Future Outlook - Despite the weaker quarterly results, management remains optimistic, raising the full-year sales outlook to $36 billion from $33 billion, supported by new large-scale deals related to Nvidia-powered AI systems [7].

Core Viewpoint - Super Micro Computer (SMCI) experienced a significant decline in stock price following disappointing fiscal first-quarter results, raising concerns about profitability despite strong demand for AI hardware [1][5]. Financial Performance - The company reported revenue of $5.02 billion, falling short of the $5.80 billion expected by analysts, marking a 15% decrease from $5.94 billion a year earlier [3][5]. - Adjusted earnings per share were $0.35, missing forecasts of $0.39, representing the sixth consecutive quarter of earnings shortfalls [3][5]. - Net income nearly halved to $168.3 million from $424.3 million, indicating significant margin pressures as the company expands its product offerings and manufacturing capabilities [5]. Market Context - Super Micro has been a key player in the AI boom, benefiting from high-performance servers paired with Nvidia GPUs, but growth momentum has recently slowed [6]. - Competitors like Dell are reportedly gaining market share as Super Micro's growth flattens [6]. Future Outlook - Despite the weaker quarterly results, management remains optimistic, raising the full-year sales outlook to $36 billion from $33 billion, supported by new large-scale deals related to Nvidia-powered AI systems [7].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

The SMCI stock price suffered a harsh reversal in the extended hours after the company published its financial results that missed analysts' estimates. It dropped by as much as 10% to $43.20, down by ... ...