Super Micro Computer: A Contrarian AI Play

  • Super Micro Computer's shares crashed 17% after preliminary Q3 '25 earnings due to missing guidance & estimates. The release of full earnings last week did not help the share price either. Despite a bad quarter, long-term fundamentals in the Data Center industry and AI spending trends remain strong. SMCI's gross margin came under pressure in the third quarter, but the AI server maker remained widely profitable regardless.