Shares of Super Micro Computer, Inc. ( SMCI ) are falling Thursday after the IT solutions provider shared a disappointing business update.

SMCI is taking a hit from negative sentiment. Get the complete picture here.

What To Know: Super Micro announced that it expects to report $5 billion in first-quarter revenue after design wins pushes some expected revenue to the second quarter. The company previously guided for first-quarter revenue of $6 billion to $7 billion, according to Benzinga Pro.

Super Micro reported recent design wins of more than $12 billion with requested delivery in the second quarter. The company said it will provide further updates on design wins and guidance when it reports first-quarter results after the market close on Nov. 4.

Despite announcing lower expected revenue in the first quarter, the company is optimistic about the AI environment, noting that it sees “robust demand” for Super Micro Nvidia GB300, B300, RTX Pro and AMD 355X LC, which are just now starting to ship.

"Supermicro is seeing outstanding levels of customer engagements for newly released AI liquid cooled solutions along with numerous key customers ramping large, multi-quarter, volume deployments," said Charles Liang, CEO of Super Micro.

"We see customer demand accelerating, and we are gaining AI share, reiterating revenue of at least $33B for FY 2026 with the expectation of delivering more."

SMCI Analysis: Super Micro stock is trading approximately 2.6% above its 50-day moving average of $47.41, which could serve as a key support level in the near term. The 200-day moving average, positioned at $42.62, is further below and may provide additional support should the stock continue to face downward pressure. The calculated support level stands at $44.53, which aligns closely with the 50-day moving average, reinforcing this area as a critical point for buyers to step in.

This recent decline comes after a strong year-to-date performance of 61.9%. The relative strength index (RSI) is currently at 52.83, indicating a neutral position, suggesting that the stock is neither overbought nor oversold, which may lead to increased volatility as traders assess the next direction.

Given the current setup, a close below the 50-day moving average could signal further weakness, while a rebound from the support level at $44.53 may provide an opportunity for a bullish reversal. Traders should watch for confirmation of either scenario to gauge the stock’s next move.

SMCI Price Action: Shares of Super Micro were down 6.62% at $49.03 at the time of publication on Thursday, according to Benzinga Pro.

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