Supermicro Stock Slips 33% in a Month: Should You Buy, Sell, or Hold SMCI?

Core Viewpoint - Super Micro Computer (Supermicro) has experienced a significant decline in its stock price, dropping over 33% in the past month due to disappointing earnings results and cautious guidance, despite being a key player in the AI infrastructure market [1][2]. Group 1: Financial Performance - Supermicro reported net sales of $5 billion for its fiscal 2026 first quarter, marking a year-over-year decline of approximately 15% and a sequential decrease of 13%, which fell short of its earlier guidance of $6 billion to $7 billion [3]. - The company’s revenue growth has slowed considerably, with a notable decline from $5.8 billion in the fourth quarter of fiscal 2025, which was a 7.4% increase year-over-year, following previous quarters of 19.5%, 54.9%, and 180.1% growth [4]. - Adjusted earnings per share for the most recent quarter were reported at $0.35, less than half of the $0.73 earned in the same quarter a year earlier, indicating tightening margins alongside slowing sales momentum [5]. Group 2: Future Outlook - Despite recent underperformance, Supermicro's management expressed optimism during the latest earnings call, indicating confidence in a turnaround driven by strong demand for AI GPU platforms, which now account for over 75% of the company's quarterly revenue [6].