Super Micro Fell 7% on a Memory Shortage Warning. Its Margin Has to Answer November 3

Key Takeaways

Super Micro fell 7% on Friday along with Dell and other hardware stocks, after Intel warned that memory prices and shortages are slowing PC demand.
Super Micro sells no PCs. It has already said its September-quarter gross margin should come in at 12.0%-12.5%, above its own 10.4%-10.8% forecast.
Intel’s warning covers recent weeks, so the memory test on Nov. 3 is Super Micro’s December-quarter margin outlook. Analysts expect a 10.2% gross margin for fiscal 2027.
At 6.9x forward earnings, near its five-year low, the stock already prices in a squeeze. A margin outlook near 10% and an unchanged fiscal 2027 sales range would make the drop look overdone.

Super Micro Computer (SMCI) fell 7% on Friday after…