NVIDIA, Dell fall after-hours after SMCI’s Q3 warning

Investing.com - NVIDIA (NASDAQ: NVDA) shares fell 1.7% in after-hours trading on Tuesday after major customer Super Micro Computer Inc (NASDAQ: SMCI) issued preliminary third quarter results well below estimates. Super Micro makes advanced AI servers that include NVIDIA chips.

Super Micro said it now expects net sales for the quarter to be $4.5-$4.6 billion, down from its prior view of $5-$6 billion and the consensus of $5.41 billion. The company expects non-GAAP EPS for the quarter to be $0.29-$0.31, down from its prior view of $0.46-$0.52 and the consensus of $0.54.

The company said that while new-generation product design wins were "robust", some delayed customer platform decisions moved sales into Q4. Further, the server maker said GAAP and Non-GAAP gross margin for Q3 was 220 basis points lower than Q2 primarily due to higher inventory reserves resulting from older generation products and expedite costs to enable time-to-market for new products.

In addition to the weakness in NVIDIA following the update, shares of Super Micro’s rival, Dell (NYSE: DELL), fell 4.8% in after-hours trading on Tuesday.

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