Super Micro Computer Q4 Earnings Preview: AI Boom Fuels Expectations

Super Micro Computer Q4 earnings on deck: What to expect

Super Micro Computer (NASDAQ:SMCI) is set to report fourth quarter results on Tuesday, after markets close. Wall Street expects the San Jose, Calif.-based company to post EPS of $8.16 on revenue of $5.31 billion for the quarter. The company makes products such as rackmount servers and graphics processing unit (GPU) servers, motherboards and chassis, and ethernet switches, but the most important is its capability of making artificial intelligence servers. Earlier in April, it reported quarterly revenue that tripled from a year ago, driven by demand for its artificial intelligence servers, and raised its full-year revenue guidance. According to BofA analyst Ruplu Bhattacharya, Supermicro stands to benefit from for AI related accelerated computing and one of Super Micro's top advantages over other server companies is its ability to provide liquid cooling at scale. "I see good odds for SMCI FY Q4 earnings to exceed market expectations and trigger a large stock price rebound in the near term," pointed out a Seeking Alpha analysis. However, a recent Seeking Alpha analysis said SMCI may struggle to beat forecasts for Q4 2024 due to challenges in improving margins and providing fresh catalysts. "SMCI's gross profit margin hasn't improved significantly, which risks the company starting to miss EPS estimates once the scope for cost improvements in operating expenses is exhausted," it added. Over the last two years, SMCI has beaten both EPS and revenue estimates 88% of the time and has beaten revenue estimates 88% of the time. Analysts are bullish on the stock with Seeking Alpha, Wall Street and Seeking Alpha's Quant rating considering it a Buy and above. Over the last three months, EPS estimates have seen two upward revisions and no downward revisions, while revenue estimates have seen two upward revisions versus no downward moves. Shares of the company have more than doubled in value so far this year. More on Super Micro Computer Super Micro Computer's Q4 Earnings Expectations May Be Too Difficult To Reach Super Micro Computer Q4 Preview: A Swing Trade Setup (Technical Analysis) Super Micro Computer: AI Rocketship Isn't About To Crash Yet

What You Need To Know Ahead of Super Micro Computer's Earnings Report

The company also could provide investors with updates on its partnership with Nvidia and the impact of Nvidia's delayed the Blackwell AI chip. Super Micro Computer (SMCI) is set to report fourth-quarter earnings for its fiscal 2024 after the bell Tuesday, with investors likely watching for strong quarterly guidance that suggests strong artificial intelligence (AI) demand as well as awaiting updates on the server maker's partnership with Nvidia (NVDA). The company's revenue is projected to be $5.29 billion, according to estimates compiled by Visible Alpha. Net income is expected to come in at nearly $489 million, or $7.54 per share, positioning revenue and profit higher than both Super Micro's prior quarter and the year-ago period.

What's Going On With Super Micro Stock Monday? - Super Micro Computer (NASDAQ:SMCI)

AI stocks, key 2024 market drivers, saw declines due to recession concerns after a weak July jobs report. Artificial intelligence server stock Super Micro Computer, Inc. SMCI traded lower on Monday, following the broader semiconductor index selloff, which was led by key tech supplier Nvidia Corp NVDA. What Happened: AI stocks, which have driven much of 2024's market gains, are falling, CNBC reports. These sector declines followed Friday's disappointing July jobs report, which heightened recession worries and concerns that the Federal Reserve is slow to cut interest rates to stimulate the economy. Investors are shifting to a risk-off stance. AI stocks with high valuations are being sold off. Semiconductors and AI chip stocks are jittery. Reports indicate Nvidia's AI chip production issues could extend the delay by several months or more. Nvidia and Super Micro share a close relationship, as per a Forbes report. Both CEOs, Charles Liang of Super Micro and Jensen Huang of Nvidia, immigrated to the U.S. from Taiwan. Liang founded Super Micro in 1993 and has collaborated with Nvidia for over 30 years. Wedbush analyst Matt Bryson expressed optimism about Super Micro's long-term AI growth prospects. He cites positive demand trends for H100 and H100 servers. Super Micro Computer stock gained 66% in the last 12 months thanks to the AI frenzy. Why It Matters: The AI server market worldwide is projected to reach $430 billion by 2033. That's a significant increase from $31 billion in 2023, as per Statista. These AI servers are built to handle the rigorous requirements of AI applications like machine learning. Investors can gain exposure to Super Micro through the Vanguard S&P 500 ETF VOO and iShares Core S&P 500 ETF IVV. Price Action: SMCI shares traded lower by 7.00% at $580.13 at last check Monday. Now Read: Goldman Sachs Raises US Recession Odds: Treasury Yields Tumble, Yen Rallies As Traders Bet On Heavy Fed Rate Cuts Market News and Data brought to you by Benzinga APIs