Super Micro’s first quarter results showed solid year-on-year revenue growth, yet the company fell short of Wall Street’s revenue expectations as customers delayed purchases to await next-generation AI hardware. CEO Charles Liang attributed the shortfall primarily to technology platform transitions, explaining that “customers [were] waiting and evaluating AI platforms between the current Hopper and the upcoming Blackwell GPUs, leading to delayed commitments.” A one-time inventory write-down of older products and ongoing tariff pressures also weighed on operating margins, but management emphasized progress in ramping new AI platform shipments and expanding its global manufacturing footprint.

Is now the time to buy SMCI? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Super Micro’s Q1 Earnings Call

• Samik Chatterjee (JPMorgan) asked about customer order volatility given macro uncertainty; CEO Charles Liang said orders remain strong for the next quarter, despite some customers delaying purchases due to tariffs and platform changes.
• Michael Ng (Goldman Sachs) questioned the midterm demand outlook and whether the company still targets substantial revenue growth; Liang confirmed confidence in long-term growth, especially with Blackwell and DCBBS, but withheld specific long-term guidance due to uncertainty.
• George Wang (Barclays) probed the lower contribution from top customers; Liang attributed it to shipment timing and said there is no underlying trend causing concern.
• Asiya Merchant (Citigroup) asked about the impact of AI diffusion rules and gross margin outlook; Liang said AI demand remains strong but highlighted tariffs and new export controls as potential headwinds for margins.
• Mehdi Hosseini (SIG) pressed for clarification on manufacturing capacity versus capital expenditures; Liang explained that while U.S. capacity remains steady, new facilities in Malaysia and Taiwan will be fully enabled later in the year to handle future demand.

Catalysts in Upcoming Quarters

In the upcoming quarters, the StockStory team will monitor (1) customer adoption rates for the Blackwell and DCBBS product cycles, (2) the company’s ability to manage inventory and operational costs as new facilities ramp up, and (3) the impact of tariffs and regulatory changes on both demand and profitability. Execution on large-scale datacenter deployments and continued innovation in liquid cooling will also be important indicators of future performance.

Super Micro currently trades at $48.59, up from $32.89 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.