Supermicro has issued a third quarter business update revealing weak preliminary financial results, leading to a substantial drop in stock value, with shares plummeting by 20%. The company has significantly cut its revenue forecast for the quarter by $1.4 billion due to missed estimates and delayed orders, raising concerns about the impact of AI-driven server and storage demand. This disappointing news has also led to declines in related stocks, including Nvidia and Dell, further exacerbating the situation in after-hours trading.