(Reuters) -AI server maker Super Micro Computer ( SMCI ) on Tuesday cut expectations for third-quarter revenue and profit amid a global trade war, blaming a delay in customer spending, sending shares down more than 16% in extended trading.

Super Micro's dour forecast comes amid widespread worries of a pullback in AI-linked spending against the backdrop of a worsening economic outlook resulting from U.S. President Donald Trump's sweeping global tariffs.

The San Jose, California-based company makes high-performance servers featuring chips from artificial intelligence leader Nvidia and rival AMD for use them in data centers supporting intensive AI applications.

Delayed "customer platform decisions" moved sales into the fourth quarter, the company said.

TD Cowen analysts said last month that Microsoft had abandoned projects set to use 2 gigawatts of electricity in the U.S. and Europe in the last six months due to an oversupply.

Super Micro now expects revenue in a range of $4.5 billion to $4.6 billion, down from its earlier expectations of $5 billion to $6 billion.

The company cut its expectations for adjusted quarterly profit to a range of 29 cents to 31 cents per share, a massive step down from its earlier expectations for profit between 46 cents and 62 cents per share.

It pinned the grim profit figures on higher inventory levels of older products.

Robust spending on expanding infrastructure to support booming generative AI technology has been responsible for a dizzying rally in tech shares over the last two years, which has now shown signs of slowing.

Super Micro has emerged as a key winner of a rise in AI-facing shares, with its stock gaining more than 250% over 2023 and 2024.

In February, Super Micro finally filed its long-delayed annual report for the fiscal year ended June 30, 2024, saving it from a potential delisting after a litany of accounting issues and short seller Hindenburg Research's allegations of "accounting manipulation."