Super Micro stock drops on slumping sales, weak earnings

Core Insights - Super Micro Computer Inc. reported weaker-than-expected results for the fiscal first quarter, leading to a share price decline of up to 10% in extended trading [1][3] - Revenue decreased by 15% year-over-year to $5.02 billion, significantly below the expected $6 billion [1][3] - Net income fell over 60% to $168.3 million, or 26 cents per share, compared to $424.3 million, or 67 cents per share, a year earlier [2] Revenue and Earnings - The company initially expected revenue of $6 billion to $7 billion but revised its guidance down to $5 billion for the quarter [1] - Super Micro anticipates sales of $10 billion to $11 billion in the current quarter, exceeding the average estimate of $7.83 billion [2] Market Position and Trends - Super Micro has benefited from the AI boom, utilizing Nvidia's graphics processing units in its servers, but growth has stagnated recently [3] - Analysts suggest that competitors like Dell may be gaining market share, impacting Super Micro's performance [3] - Prior to the earnings report, Super Micro's stock had increased by 55% for the year [3]