The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
© 2024 TheOutpost.AI All rights reserved
Curated by THEOUTPOST
On August 6, 2024
3 Sources
[1]
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
[2]
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.
[3]
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
Share
Share
Copy Link
Super Micro Computer is set to report its Q4 earnings, with analysts and investors closely watching the company's performance amid the ongoing AI boom. The stock has seen significant growth, driven by increased demand for AI-related hardware.
Super Micro Computer, Inc. (NASDAQ: SMCI) has emerged as a standout performer in the tech sector, with its stock price skyrocketing by an impressive 223% year-to-date 1. This remarkable growth has been largely attributed to the surging demand for artificial intelligence (AI) infrastructure, positioning Super Micro as a key player in the AI hardware market.
As Super Micro prepares to release its fourth-quarter earnings for fiscal year 2023, analysts and investors are eagerly anticipating the results. The consensus estimate for earnings per share (EPS) stands at $3.15, representing a substantial year-over-year increase of 39.8% 2. Revenue projections are equally optimistic, with expectations set at $2.21 billion, marking a 15.6% rise from the previous year.
The company's strong performance is closely tied to the ongoing AI boom, which has significantly increased demand for high-performance computing solutions. Super Micro's server and storage systems, optimized for AI and machine learning applications, have seen heightened interest from businesses looking to enhance their AI capabilities 1.
Super Micro's stock has shown notable volatility in recent trading sessions. On Monday, August 7, 2023, the stock experienced a decline of 6.68%, closing at $279.27 3. This movement comes ahead of the anticipated earnings release, reflecting investor sentiment and market dynamics surrounding the company.
Wall Street analysts have maintained a positive outlook on Super Micro, with the average price target standing at $375.40, suggesting a potential upside of 34.4% from current levels 3. The company's ability to capitalize on the growing demand for AI-related hardware has been a key factor in these optimistic projections.
Investors and analysts will be closely monitoring several key aspects of Super Micro's earnings report:
Super Micro's performance is not only significant for the company itself but also serves as a barometer for the broader AI hardware market. A strong showing could indicate continued momentum in the AI sector, potentially influencing investor sentiment towards other companies in the space 2.
Reference
[1]
Super Micro Computer's stock experiences a significant surge following impressive earnings results and increased demand for AI-capable servers. The company's strategic positioning in the AI market has caught investors' attention.
2 Sources
Super Micro Computer's stock experiences a significant surge following impressive earnings results. Analysts and investors speculate on the company's potential growth and market position in the coming years.
2 Sources
Super Micro Computer's stock experiences significant fluctuations as the company rides the AI wave. Investors speculate on a potential stock split while analysts debate the stock's valuation and growth prospects.
4 Sources
Super Micro Computer experiences significant stock fluctuations following its Q4 earnings report, despite impressive revenue growth. Investors grapple with concerns over margins and valuation amid the company's AI-driven expansion.
6 Sources
Super Micro Computer's stock experiences a decline as investors await the company's upcoming earnings report. The server and storage solutions provider is set to announce its fourth quarter and full-year fiscal 2024 financial results on August 6, 2023.
2 Sources