Super Micro Computer, known for its innovation in IT infrastructure, missed analysts’ expectations for its fourth quarter. The company also announced a 10-for-1 stock split, which caused a mixed reaction in the market. The developments highlight the ongoing challenges and opportunities for the company amid growing demand for artificial intelligence infrastructure. The news was reported by Yahoo on August 7, 2024.
Super Micro Computer reported fourth-quarter results that fell short of analysts’ expectations. Despite a significant increase in revenue, rising costs led to lower margins, which hurt earnings. The company reported net income of $353 million, below analysts’ expectations. This caused the company’s shares to fall 12% in extended trading.
Alongside this, Super Micro Computer announced a 10-for-1 stock split. This decision was made in an effort to make the stock more accessible to a wider range of investors and improve liquidity in the market. Trading on the new shares will begin on October 1, 2024.