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With Friday's drop, shares of Hoka maker Deckers have lost more than half of their value in 2025
Key Takeaways

• Deckers Outdoor shares took a hit Friday after executives said the Hoka maker expects consumers could pull back in the face of higher tariffs and prices.
• Its current-quarter outlook missed analysts' estimates compiled by Visible Alpha.

Deckers Outdoor (DECK) shares plunged Friday after the shoe and apparel maker gave a weaker-than-expected outlook, saying it sees a pullback from consumers because of tariffs and rising prices.

The stock was down nearly 14% in recent trading. It's lost more than half its value since the year began.

The company behind the Ugg and Hoka brands said it now anticipates full-year sales of about $5.35 billion, below the consensus of analysts surveyed by Visible Alpha.

CEO Stefano Caroti told investors during the company's earnings call, "we are anticipating a more cautious consumer as the full impact of tariffs and price increases will be felt here in the U.S.,” according to a transcript provided by AlphaSense. CFO Steven Fasching said the headwinds from tariffs may be partially offset by the company's mitigation strategies, which could include promotions to entice shoppers.

Why This Matters to Investors

Higher tariffs could mean rising prices for Deckers shoes and apparel as the company faces margin pressure. The company's warning that may hold shoppers back could also be taken as a concerning signal for consumer spending more broadly.

The downbeat outlook offset strong quarterly results. Deckers posted earnings per share of $1.82 for its fiscal second quarter on revenue that rose 9.1% year-over-year to $1.43 billion. Both figures topped analysts' estimates, driven by strong sales of the company's Ugg and Hoka brands.

Ugg sales surged 10.1% to $759.6 million, and Hoka sales grew 11.1% to $634.1 million. However, sales of other brands dropped 26.5% to $57.2 million.

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Federal Reserve officials such as Chair Jerome Powell have said they're paying close attention to jobs.
Key Takeaways

• The Consumer Price Index rose less than expected in September, leaving the Fed on track to cut interest rates.
• Fed officials had held their key interest rate high this year to subdue inflation, but the Fed has decided to cut interest rates to boost the job market.
  

It would have taken a surprising surge of inflation in September to deter the Federal Reserve from cutting interest rates in October—and that didn't happen.

The Consumer Price Index rose 3% over the year in September, the Bureau of Labor Statistics said Friday. While that was the highest annual inflation rate since January, it was below forecasters' expectations for a 3.1% uptick.

Moreover for the Fed, "core" inflation, which excludes volatile prices for food and energy, rose 3%, down from 3.1% in August and also below expectations. Fed policymakers watch "core" inflation measures closely because they can be better indicators of the trajectory of prices. Food and energy prices can rise and fall significantly for reasons that have nothing to do with broad inflation trends.

What This Means For The Economy

The Federal Reserve is likely to cut its benchmark interest rate in the coming months, which will put downward pressure on interest rates for all types of short-term loans, as well as yields for CDs and high-yield savings accounts.

The report solidified expectations that the Federal Reserve will cut its benchmark interest rate next week when the Fed's policy committee is scheduled to meet. Fed officials cut the fed funds rate by a quarter-point in September to boost the faltering job market. The Fed had held rates high to counteract inflation, but concerns about prices have taken a back seat to worries about a hiring slowdown in recent months.

Even before Friday's report, the Fed was widely expected to go ahead with a rate cut. Fed officials had penciled in two rate cuts at their remaining two meetings this year, as noted in their quarterly monetary policy projections last month.

Financial markets are pricing near certainty the Fed will cut the fed funds rate to a range of 3.5% to 3.75% by the end of the year, a half a percentage point below its current level, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

“There was little in today’s benign CPI report to 'spook' the Fed and we continue to expect further easing at next week’s Fed meeting," Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, wrote in a commentary. "A December rate cut also remains likely with the current data drought providing the Fed with little reason to deviate from the path set out in the dot plot."

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The 2026 COLA may not keep up with beneficiaries' expenses.
KEY TAKEAWAYS

• Social Security benefits will increase by 2.8% in 2026 to contend with the cost of living.
• However, rising prices for essentials like health care and groceries mean many seniors still feel they’re falling behind.

While Social Security beneficiaries will see larger paychecks next year, the annual cost-of-living adjustment for 2026 may not be enough to keep up with older Americans' growing expenses.

The Social Security Administration announced on Friday morning that the 2026 cost-of-living adjustment for benefits will be 2.8%. The adjustment, also known as COLA, is calculated every year based on inflation in the third quarter. The increased benefits will be reflected in checks starting in January.

This year's announcement was delayed after the government shutdown stopped a key inflation report from being released on time.

Why This Matters to You

Retired Americans must budget around a fixed income, especially the nearly 22 million seniors who rely solely on Social Security benefits. Knowing how their benefits will change for 2026 is essential for them to prepare for the coming year.

Will The Adjustment Be Enough For Beneficiaries?

The 2026 COLA is higher than the 2.5% adjustment for 2025; however, it may not be sufficient to keep pace with the rising expenses of many retired beneficiaries.

The Social Security COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of each year. That means the COLA utilizes inflation rates from July, August, and September.

However, since the formula uses past data and is not predictive, experts argue it does not accurately cover increases in Social Security beneficiaries' expenses. In addition, as the majority of beneficiaries are older Americans, some have argued that the SSA should use inflation reports specifically for senior expenses.

From 2010 to 2024, Social Security benefits rose by 58%. However, expenses rose by 73% during the same time, according to a report from The Senior Citizens League. Specifically, the cost of Medicare, the federal health insurance for disabled and older Americans, and other health care costs are growing faster than the annual COLA.

In a recent Nationwide survey, more than half of retired Social Security recipients said they are cutting discretionary spending as inflation is cutting into their budgets. Over a third said they are reducing essential spending, such as medical services and food.

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Inflation rose again in September, keeping pressure on family budgets.
Key Takeaways

• The Consumer Price Index rose 3% over the year in September, up from 2.9% in August and the highest annual inflation since January.
  
• The acceleration was lower than the uptick to 3.1% that forecasters had expected.
  
• Inflation has remained stubbornly high in the post-pandemic era, driven up by tariffs and squeezing household budgets.
  

Inflation stayed stubbornly high in September, keeping the squeeze on the buying power of household budgets.

The Consumer Price Index rose 3% over the year in September, up from a 2.9% annual increase in August, the Bureau of Labor Statistics said Friday. That was the highest 12-month inflation rate since January.

"Core" inflation, which excludes volatile prices for food and energy, also rose 3.0% over the year, down from 3.1% in August. Both measures were below the 3.1% expected by forecasters according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

The report highlighted the staying power of the inflation surge that started as the economy reopened from pandemic shutdowns in 2021. Inflation peaked at 40-year highs in 2022 and began to recede after that, as the Federal Reserve raised interest rates to discourage borrowing.

What This Means For The Economy

Inflation in September was in line with its recent trend: consumer prices are rising uncomfortably faster than the Federal Reserve's goal of a 2% annual rate.

Inflation generally fell after that, and had nearly reached the Fed's goal of a 2% annual rate by early 2025. But the yearly inflation rate has risen every month since April, pushed up at least partly by President Donald Trump's import taxes, which merchants have largely passed along to consumers. The 0.7% month-over-month rise of prices for apparel—which is largely imported from overseas—in September showed the impact of tariffs on prices, economists said.

The CPI report was the only data published by the Bureau of Labor Statistics during the ongoing government shutdown, which began Oct. 1 and has no end in sight. The BLS brought back staff to produce the CPI report because it is crucial for determining the annual cost-of-living adjustments to Social Security benefits. The data for the September report were collected through surveys conducted in September, prior to the shutdown, the BLS stated.

Gasoline prices, which rose 4.1% in September from August on a seasonally-adjusted basis, were the biggest factor pushing up the overall inflation rate.

A bit of good news for household bottom lines was that "owner's equivalent rent," a measure of housing costs, only rose 0.1% over the month, the smallest monthly increase since 2021. The subdued housing costs helped keep overall inflation in check because those costs are a large percentage of typical household budgets as well as the CPI.

"Inflation might not be slowing, but it’s not surprising to the upside anymore," David Russell, global head of market strategy at TradeStation, wrote in a commentary. "The details are positive, with shelter and transportation services moderating. Some key parts of the basket are cooling even if tariffs nudge items like apparel higher."

Update, Oct. 24, 2025: This article was updated to include additional information from the CPI report.

News of the day for Oct. 24, 2025

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The major U.S. stock indexes are on track to post gains for the second consecutive week.

Stock futures are higher as investors await the release this morning of key inflation data; the Consumer Price Index report is expected to show inflation moved higher in September amid tariff pressures; President Trump said he was ending trade negotiations with Canada; Intel (INTC) shares are surging after the embattled chipmaker reported better-than-expected earnings and an optimistic outlook; and Ford (F) shares are gaining after its earnings topped Wall Street estimates. Here's what you need to know today.

1. Stock Futures Higher Ahead of Inflation Data

Stock futures are higher this morning as earnings reports continue to roll in and investors prepare for the release of a key inflation report. Futures tied to the benchmark S&P 500 and the tech-heavy Nasdaq recently were up 0.3% and 0.5%, respectively, while Dow Jones Industrial Average futures added 0.2%. The major indexes are coming off a winning session on Thursday and are on track to post gains for the second consecutive week. Gold futures were down 1.6% at $4,080 an ounce, as trading in the precious metal remains volatile, while bitcoin was at $111,100, up from an overnight low around $109,400. The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of consumer loans, rose to 4.01% from 3.99% at yesterday's close.

2. CPI Report Expected to Show Inflation Rose in September

Following a delay due to the government shutdown, the Consumer Price Index inflation report is expected to show inflation ticked higher in September as tariffs pushed up prices. Economists surveyed by Dow Jones Newswires and The Wall Street Journal estimate that prices rose 3.1% last month from a year ago, which would mark the highest annual inflation rate since May 2024. The CPI numbers, due to be released at 8:30 a.m. ET, will be closely followed by the Federal Reserve, which is expected to cut interest rates when its policy committee meets next week. The September inflation report was originally scheduled to be released on Oct. 15 and could be one of the few official pieces of economic data produced by the government's statistical agencies during the shutdown.

3. Trump Says Trade Negotiations With Canada Are Terminated

President Donald Trump said that all trade negotiations with Canada have been terminated after the Ontario provincial government used audio of former president Ronald Reagan criticizing tariffs in television ads aired in the United States. Trump described the ads as “fake” and posted a message from the The Ronald Reagan Presidential Foundation and Institute that said the ad misrepresented a 1987 radio address given by the former president. Trump said the ad was designed to influence the current Supreme Court review of tariffs. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Trump wrote. Trump’s trade threat comes after he had already proposed a series of tariffs on the country. Negotiations over renewal of the U.S. Mexico Canada (USMCA) trade deal had been scheduled to take place ahead of a July 2026 deadline.

4. Intel Shares Jump on Strong Earnings, Optimistic Outlook

Intel (INTC) shares surged in premarket trading after the embattled chipmaker said it swung to a profit in the third quarter and delivered an optimistic outlook for the fourth quarter. After reporting losses in the prior and year-ago quarters, Intel’s profit of 23 cents per share were well above analysts estimates of 2 cents compiled by Visible Alpha. The company also reported a better-than-expected 3% rise in revenue to $13.7 billion. “We took meaningful steps this quarter to strengthen our balance sheet, including accelerated funding from the U.S. Government and investments by NVIDIA and SoftBank Group that increase our operational flexibility and demonstrate the critical role we play in the ecosystem,” said CFO David Zinsner. Intel said it expects adjusted earnings of 8 cents per share in the current quarter on sales of $12.8 billion to $13.8 billion. Intel shares were up 7% in recent trading. Coming into today's session, the stock had gained 90% since the start of the year, boosted by a flurry of high-profile deals in recent months.

5. Ford Stock Rises as Earnings Blow Past Expectations

Shares of Ford (F) are rising this morning after the Big Three automaker reported results that handily topped Wall Street expectations on the top and bottom lines. Ford reported a 9% jump in revenue to $50.5 billion, compared wih the $46.3 billion analyst consensus, while its adjusted earnings per share of 60 cents blew by projections of 34 cents. However, citing the costs of a New York factory fire that could total between $1.5 billion and $2 billion, Ford lowered its 2025 outlook for adjusted earnings before interest and taxes to between $6 billion and $6.5 billion, from $6.5 billion to $7.5 billion previously. Ford shares, which through Thursday's close had risen 25% in 2025, were up 4% in recent premarket trading.

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Miami Heat guard Terry Rozier was arrested Thursday and accused of participating in a criminal betting scheme to profit off NBA games using insider information.
Key Takeaways

• Miami Heat guard Terry Rozier was arrested Thursday as part of a federal case involving the use of inside information to place prop bets on NBA games.
• After decades of trying to keep their distance, professional sports has grown increasingly comfortable with gambling, with teams relocating to Las Vegas and leagues establishing partnerships with gambling companies.
• Gambling industry advocates argue that legal, regulated sports betting roots out illicit behavior and maintains the integrity of games.

Miami Heat guard Terry Rozier on Thursday became the latest player to be accused of a criminal gambling scheme involving NBA prop bets.

Rozier, Portland Trail Blazers coach Chauncey Billups, and former NBA player Damon Jones were among more than 30 people arrested in a pair of mob-linked gambling schemes, federal prosecutors allege, with Rozier and five others accused of using insider information to place bets on NBA contests.

Prosecutors allege that in March 2023, when Rozier was a member of the Charlotte Hornets, he took himself out of a game prematurely with a fake injury so other members of the scheme could wager on the "under" on prop bets tied to his statistics.

Rozier's case is connected to that of former Toronto Raptors center Jontay Porter, who was banned from the league last year for his role in a prop bet scheme and was mentioned seven times in the indictment Thursday. Porter pleaded guilty to conspiracy charges involving manipulating his performance in two games during the 2023-24 campaign, and is awaiting sentencing.

Prop bets on very specific individual statistics—"Player X over/under 2.5 rebounds" or "Player Y will score 8-12 points"—are easier to manipulate by one athlete than a final game outcome, for example, and leagues have flagged that prop bets involving bench players—such as Rozier was at the time—are more vulnerable, because public scrutiny is lower.

Why This News is Significant

Sports leagues increasingly are partnering with betting firms to allow wagering on their games. If the integrity of outcomes is called into question, fans--and bettors--might stay away.

Just Tuesday, in fact, NBA commissioner Adam Silver said in an interview that the league had "asked some of our partners to pull back some of the prop bets, especially when they're on two-way (contracts), guys who don't have the same stake in the competition, where it's too easy to manipulate something, which seems otherwise small and inconsequential to the overall score," according to ESPN. "We're trying to put in place—learning as we go and working with the betting companies—some additional control to prevent some of that manipulation."

Sports Leagues No Longer Keep Their Distance From Gambling Firms

After decades of trying to keep their distance, sports leagues increasingly are comfortable with gambling companies.

The NFL and NHL have teams in Las Vegas, and MLB's Athletics franchise will be relocating to the sports-gambling mecca in 2028. DraftKings (DKNG) and Flutter Entertainment's (FLUT) FanDuel are official "sports betting partners" with multiple leagues, and just yesterday, the NHL announced that Kalshi and Polymarket had become their "official prediction market partners," as sports "event contracts" become more popular.

DraftKings, FanDuel Say Technology, Monitoring Root Out Illegal Behavior

"When reports surface that players or coaches are participating in sports betting against league rules or illegally, media frequently blames such activity on the spread of legal sports wagering," the American Gaming Association says. "But these investigations—and the headlines they generate—are made possible because sports betting is legal, transparent and regulated. Early detection and high-profile reporting of suspicious activity is a sign that the guardrails of the legal marketplace are playing their intended role." 

In the aftermath of today's arrests, official NBA partners DraftKings and FanDuel both put out statements advocating for regulated sports betting to root out illegal behavior and maintain games' integrity.

"We fundamentally believe that regulated online sports betting is the best way forward to monitor for and detect suspicious behavior while offering consumer protections backed by advanced technology, neither of which exist in the pervasive illegal market," a DraftKings spokesperson said. "While regulation cannot eliminate all concerns related to game integrity, it significantly reduces risks by enabling collaboration between operators, leagues, teams, and relevant authorities to identify and hold accountable anyone engaged in illegal behavior."

"Today’s events are deeply disturbing, and should concern fans, athletes, and everyone who loves sports and values integrity and fair play," a FanDuel spokesperson said. "They also illustrate the stark contrast between legal and illegal betting markets. At FanDuel, we use advanced technology and real-time monitoring to identify suspicious activity and work closely with leagues, data monitoring groups, and law enforcement."

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Intel shares were up 90% for 2025 through Thursday's close after a months-long rally on a flurry of high-profile deals.

Intel is back to being a profitable company.

Shares of the embattled chipmaker surged in extended trading Thursday, after the company swung to a profit that blew past analysts' estimates.

Intel posted adjusted earnings of 23 cents per share for the third quarter, compared to a loss in the preceding and year-ago quarters, and well above the 2 cents per share analysts expected. Its revenue rose 3% year-over-year to $13.7 billion, also topping projections compiled by Visible Alpha.

Why This Is Significant

After undergoing a major restructuring, getting a new CEO, and striking a string of high-profile deals in recent months that saw the U.S. government take a 10% stake in the company, Intel faces intense pressure to show it's making progress toward a turnaround. Thursday's earnings beat could be taken as a sign that it's heading in the right direction.

CEO Lip-Bu Tan, who took over in March of this year, said the results showed Intel's "steady progress" in its turnaround, with demand for AI helping create "attractive opportunities" across its portfolio.

“We took meaningful steps this quarter to strengthen our balance sheet, including accelerated funding from the U.S. Government and investments by NVIDIA and SoftBank Group that increase our operational flexibility and demonstrate the critical role we play in the ecosystem,” said CFO David Zinsner, adding he sees demand for Intel's products outpacing supply into 2026.

Looking ahead, Intel said it expects adjusted earnings of 8 cents per share in the fourth quarter on revenue of $12.8 billion to $13.8 billion, roughly in line with analysts' expectations.

Shares of Intel jumped over 8% in after-hours trading following the release. They were up 90% for 2025 through Thursday's close after a months-long rally on a flurry of high-profile deals.

CORRECTION: This article has been updated since it was first published to reflect Intel's fourth-quarter forecast was in line with analysts' estimates.

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Casino operator Las Vegas Sands was among the best-performing stocks in the S&P 500 on Thursday.
Key Takeaways

• A casino stock surged on Thursday, Oct. 23, 2025, as its recent investments began to pay off, while a health insurer came under pressure amid rising medical costs.
• Las Vegas Sands stock gained ground after the casino operator beat quarterly estimates and raised its dividend.
• Shares of Molina Healthcare tumbled as the insurer's medical cost ratio climbed, reflecting increased expenses from its government-sponsored plans.

A casino, hotel, and resort operator touted benefits from recent projects in Asia as factors behind its strong quarterly performance, and its shares powered higher. Meanwhile, a health insurer's stock plunged after the company reported increasing medical costs, especially in its government-sponsored plans.

Major U.S. equities indexes advanced Thursday as more earnings results rolled in ahead of key inflation data set for release on Friday morning. Surging oil prices helped boost the energy sector, and tech stocks bounced back from Wednesday's negative session. The S&P 500 gained 0.6%, while the Dow was up 0.3%. The Nasdaq jumped 0.9%. Read more reporting from Investopedia on the day's major market stories.

Although Dow (DOW) fell short of analysts' estimates with its third-quarter net sales, the chemical giant reported a narrower-than-expected loss for the period, and its shares climbed 13% Thursday. The company acknowledged pricing and demand challenges but pointed to cost-cutting measures and positive contributions from new assets on the U.S. Gulf Coast as reasons for optimism.

Las Vegas Sands (LVS) shares soared 12.4% after the casino operator posted better-than-expected revenue and adjusted earnings per share for the third quarter. CEO Robert Goldstein highlighted benefits from recently completed investments in its Macau and Singapore properties. The company also increased its existing stock buyback authorization and boosted its annual dividend.

Shares of West Pharmaceutical Services (WST) jumped 10.9% in the wake of a strong third-quarter earnings report. The provider of pharmaceutical packaging and delivery systems surpassed top- and bottom-line estimates for the period and boosted its full-year sales and profit outlook, citing strong demand for components used in injectable GLP-1 weight loss and diabetes treatments.

Oil prices surged after the U.S. imposed sanctions on Russia's two largest oil companies. Shares of exploration and production firm APA Corp. (APA) jumped 7.6%, leading oil and gas stocks higher.

Molina Healthcare (MOH) shares plunged 17.5%, the most of any stock in the S&P 500, after the health insurer missed quarterly earnings per share forecasts. Molina's medical cost ratio—a key metric that reflects the share of premiums that insurers pay out in medical claims—was higher than a year ago, leading the company to lower its annual profit forecast for the third time this year. Cost pressures were especially acute for plans offered through the Affordable Care Act marketplace.

Shares of Super Micro Computer (SMCI) dropped 8.7% after the AI server specialist cut its sales forecast for its fiscal first quarter of 2026. The company cited a shift in delivery schedules that pushed back some revenue from major AI customers into the following quarter.

Equipment rental company United Rentals (URI) posted mixed third-quarter results, topping revenue forecasts but missing profit estimates. Inflationary pressure, increased delivery costs, and soft pricing in the market for used equipment weighed on the company's results. Shares slid 7.8%.

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Binance founder Changpeng Zhao speaks during an event in Kuala Lumpur in April.
Key Takeaways

• President Donald Trump has pardoned Changpeng Zhao, founder of the world's largest crypto exchange Binance, clearing the way for his return to a leadership role.
• Bitcoin, as well as tokens linked to the Trump family and Binance popped on the news before giving back some gains.

The White House is proving to be a powerful ally for influential figures in the crypto industry.

President Donald Trump pardoned Changpeng Zhao, known to most as "CZ," who was convicted and served four months in prison last year after pleading guilty to violations of the Bank Secrecy Act. Binance was fined over $4 billion for compliance failures that led to illicit transactions. Zhao personally paid a fine of $50 million, and stepped down as CEO of the international crypto exchange he founded. His now-clear slate could lead to his return to a leadership role at Binance.

The Binance founder has reportedly campaigned for months for a presidential pardon, including boosting the Trump family's crypto firm World Liberty Financial, according to the Wall Street Journal.

Why This News is Significant

President Trump's crypto-friendly stance in his second term has been good for the industry in terms of relaxed regulation. However, cryptocurrency prices aren't much higher than they were at the start of the year.

Bitcoin (BTCUSD) saw a quick spike of roughly 3% to 5%, before the pop faded. Binance's utility token BNB (BNBUSD) jumped roughly 8% to 15% depending on the crypto exchange before giving back some gains; it's now up about 4% in the last 24 hours according to CoinGecko. Alt5 Sigma (ALTS), the crypto treasury stockpiling Trump-linked cryptocurrency WLFI (WLFIUSD), rose over 11%, and the token itself jumped 15%.

The White House did not address emailed questions asking about the events leading up to President Trump clearing Zhao's criminal history; White House press secretary Karoline Leavitt in a briefing described his prosecution as part of the Biden administration's "war on cryptocurrency." A Binance spokesperson declined to comment on whether Zhao would return to Binance.

Zhao is the latest crypto bigwig to receive a presidential pardon. Earlier this year, President Trump pardoned Ross Ulbricht, who operated a dark web marketplace called Silk Road, as well as Arthur Hayes, Benjamin Delo, and Samuel Reed, cofounders of the peer-to-peer crypto derivatives trading platform BitMEX.

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Super Micro Computer lowered its quarterly revenue forecast to $5 billion, down from its earlier guidance of $6 billion to $7 billion
Key Takeaways

• Super Micro Computer shares tumbled Thursday after the server maker cut its fiscal first-quarter revenue forecast, citing project delays that shifted sales.
• The company maintained its full-year revenue outlook.

It's been a tough day for Super Micro Computer's stock.

The shares were down nearly 9% in recent trading, making it one of the biggest decliners in the S&P 500 amid broader market gains, after the artificial intelligence server maker lowered its revenue forecast less than two weeks before it's due to report its latest quarterly results.

Supermicro (SMCI) said in a business update Thursday that it's had some recent “design wins,” but that they've pushed some of its previously anticipated revenue for the fiscal first quarter into the second quarter.

The San Jose, Calif.-based company said it now expects first-quarter revenue of $5 billion, down from its earlier guidance range of $6 billion to $7 billion, and below what analysts surveyed by Visible Alpha were expecting.

Why This News Is Significant

Supermicro, which counts AI chip leaders like Nvidia and Advanced Micro Devices among its partners, has seen its stock soar this year on anticipation it could be a prime beneficiary of the AI boom. However, elevated investor expectations could mean more volatility for the stock if the company fails to meet projections.

Still, the Nvidia partner (NVDA)—which touts itself as a "Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge"—maintained its full-year revenue outlook of at least $33 billion.

While the company has drawn attention for AI infrastructure-related opportunities, the stock slumped in August after Supermicro missed sales and profit forecasts in its most recent earnings report. Even so, and despite today's setback, Supermicro stock has added nearly 60% in 2025 so far.