Nvidia Holds Near Highs As AMD, Super Micro Disappoint

Nvidia NVDA stock is trending on Wednesday as Advanced Micro Devices AMD and Super Micro Computer SMCI failed to impress the Street with their quarterly results on Tuesday.

AMD is a direct competitor of Nvidia in the GPU market while Super Micro is a Nvidia partner.

Nvidia stock traded at just 3% off its 52-week high of $183.3.

Also Read: Nvidia Could Add Billions From China Sales If H20 GPUs Get Green Light From US: Analyst

On Tuesday, AMD posted second-quarter revenue of $7.69 billion, topping analyst expectations of $7.41 billion. Total revenue rose 32% year-over-year.

However, adjusted earnings came in at 48 cents per share, narrowly missing estimates of 49 cents.

AMD reported an adjusted gross margin of 43%, impacted by approximately $800 million in inventory and related charges tied to U.S. export controls on its Instinct MI308 GPUs. Excluding these charges, gross margin would have been 54%.

CEO Lisa Su said AMD is well-positioned for substantial growth in the second half of 2025, driven by the ramp-up of the Instinct MI350 accelerator series and continued gains in EPYC and Ryzen processor market share.

AMD guided for third-quarter revenue of approximately $8.7 billion, plus or minus $300 million, well above analyst expectations of $8.15 billion.

AMD stock fell 5% after its earnings report.

On the other hand, Super Micro reported fourth-quarter net sales of $5.76 billion, up from $4.6 billion in the previous quarter and $5.4 billion in the same period last year.

It missed the Street consensus of $5.88 billion. Earnings per share came in at 41 cents, missing the 44 cents consensus.

Gross margin declined to 9.5%, down slightly from 9.6% in the third quarter and 10.2% in the prior-year quarter. For the full fiscal year, Super Micro reported net sales of $22 billion, up from $15 billion a year earlier. Annual EPS declined to $1.68 from $1.92.

CEO Charles Liang said the company made substantial progress in fiscal 2025, citing 47% annual growth fueled by increased AI solution demand from Neoclouds, CSPs, enterprises, and sovereign entities.

Super Micro guided for first-quarter fiscal 2026 net sales between $6.00 billion and $7.00 billion, compared to the $6.60 billion Street consensus.

EPS for the quarter is expected to range from $0.40 to $0.52. For the full year, the company expects net sales of at least $33 billion, down from prior guidance of $40 billion, though still ahead of the $29.80 billion consensus estimate.

Liang said expanding global operations and enterprise adoption will support continued AI-driven growth.

On the negative side, reports indicated some Chinese automakers are moving quickly to replace Nvidia and other foreign chip suppliers, aiming to safeguard self-driving tech development from U.S. export risks.

Xpeng XPEV and Nio NIO, both previously reliant on Nvidia, have started using their chips—Xpeng with its Turing chip and Nio with the Shenji NX9031—in their latest smart-driving models.

Nvidia stock gained 33% year-to-date, backed by the continued AI frenzy as Meta Platforms META, Microsoft MSFT, and Alphabet GOOGL boost capital expenditures on data centers, servers, and networking.

NVDA Price Action: Nvidia stock is trading higher by 0.50% to $179.16 at publication on Wednesday.

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