Supermicro Stock Nosedives: What’s Behind the August 2025 Crash?

Tech investors got whiplash today as Supermicro shares tanked—here's why the server darling is bleeding value.

The sell-off spiral

No fancy charts needed—when a stock drops this hard, everyone smells blood. Supermicro's plunge reeks of institutional panic.

Hardware hype hits reality

AI server demand can't outrun supply chain math. Even Wall Street's favorite hardware play isn't immune to gravity (or profit-taking).

Bonus finance jab

Analysts who called this 'the next NVIDIA' last quarter are now quietly updating their LinkedIn headlines.

Key Takeaways

• Super Micro Computer posted quarterly results below forecasts as it faced higher costs from tariffs and a major customer required changes.
• The server maker also gave a weaker-than-expected outlook.
• Super Micro Computer said it saw expenses take off because of a jump in salaries and staff.

Super Micro Computer (SMCI), shares plunged Wednesday after the server Maker reported weaker-than-expected results, as it faced higher costs from tariffs and changes required by a major customer.

The shares were down nearly 20% in recent trading. Still, they've added about half of their value in 2025.

Supermicro posted fiscal fourth-quarter adjusted earnings per share (EPS) of $0.41, down $0.13 from 2024 and below analysts' estimates compiled by Visible Alpha. The company blamed the decline on tariffs and higher operating costs. Revenue ROSE 7.5% year-over-year to $5.76 billion, though that was also short of forecasts.

CEO Charles Liang said revenue was lower in June because of “capital constraints that limited our ability to rapidly scale production, and specification changes from a major new customer that delayed revenue recognition because of new added features.” He said those issues have been resolved.

CFO David Weigand also noted that operating expenses jumped 22.6% to $315.7 million on higher compensation payments and headcount.

The company said it sees first-quarter adjusted EPS in the range of $0.40 to $0.52, while analysts had called for $0.60. 

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