Super Micro Computer (SMCI) Is About to Report Q4 Earnings Tomorrow. Here Is What to Expect
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Wall Street analysts anticipate that the company will report earnings of $0.45 per share, reflecting a 29% year-over-year decrease. However, revenues are expected to rise by 13% from the same quarter last year, reaching $5.98 billion, according to data from the TipRanks Forecast page.
Analysts' Views Ahead of Q4 Earnings
Ahead of Super Micro's Q4 print, Citi analyst Asiya Merchant raised the stock's price target to $52 from $37 but kept a Neutral rating. The analyst expects growth to be driven by stronger AI server demand and easing supply constraints for Nvidia (NVDA) 's Blackwell GPUs. However, she remains concerned about rising competition from Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE), which could weigh on margins.
For the upcoming fourth quarter, Citi forecasts revenue of $6.07 billion, up 13.4% year-over-year and 32% sequentially, with EPS of $0.45, roughly in line with consensus. Looking ahead to Q1 FY26, the bank expects revenue of $7.02 billion and EPS of $0.65, both above Street estimates.
Meanwhile, BofA Securities analyst Ruplu Bhattacharya initiated coverage on Super Micro with an Underperform rating and a price target of $35, implying nearly 38% downside from current levels. He pointed to declining margins, limited component availability such as GPUs and liquid cooling systems, and increasing competition from other players in the AI server market.
Options Traders Anticipate a Large Move
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 13.40% move in either direction.
Is SMCI Stock a Good Buy?
The stock of Super Micro Computer has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on six Buys, six Holds, and two Sell recommendations issued in the past three months. The average SMCI price target of $42.85 implies a 24.35% upside risk from current levels.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Astera Labs price target raised to $160 from $120 at Northland
Northland raised the firm's price target on Astera Labs (ALAB) to $160 from $120 and keeps a Market Perform rating on the shares. The ramp of the Scorpio P PCIe switch for scale-out in AI racks drove revenue upside and the firm expects continued momentum driven by new products, diversification of AI platforms, and increasing content, but maintains its rating due to valuation. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on ALAB: Disclaimer & DisclosureReport an Issue Why Is Astera Labs Stock (ALAB) Gaining Traction Today? Astera Labs price target raised to $160 from $105 at Deutsche Bank Astera Labs Reports Strong Q2 2025 Financial Results Closing Bell Movers: Snap down 17%, Super Micro down 16% on earnings Astera Labs reports Q2 EPS 44c, consensus 32c
Yahoo
3 hours ago
- Yahoo
Stocks Climb Before the Open on Chip Tariff Relief and Ukraine Truce Hopes
September S&P 500 E-Mini futures (ESU25) are up +0.81%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.78% this morning as U.S. President Donald Trump's 100% tariff threat on chip exporters included exemptions for firms investing in the U.S., while hopes for a truce in Russia's war with Ukraine further boosted sentiment. President Trump announced late Wednesday a roughly 100% tariff on semiconductors entering the U.S., but noted that tech firms like Apple investing in domestic manufacturing would be exempt from the duties. Mr. Trump said that 'if you're building in the United States of America, there's no charge.' Also aiding sentiment, the Kremlin confirmed that Presidents Donald Trump and Vladimir Putin are set to hold summit talks in the coming days, fueling hopes for a potential truce in Russia's war with Ukraine. Increasing speculation that the Federal Reserve will resume rate cuts in September is also buoying sentiment as U.S. reciprocal tariffs took effect against dozens of countries a minute past midnight Washington time on Thursday. In a social-media post, Mr. Trump said, 'Billions of dollars in tariffs are now flowing into the United States of America.' More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Investors now look ahead to U.S. jobless claims data for further insight into the health of the labor market. In yesterday's trading session, Wall Street's three main equity benchmarks closed higher. Apple (AAPL) climbed over +5% and was the top percentage gainer on the Dow following reports that the tech titan is set to announce a fresh $100 billion investment in the U.S. in an effort to avoid steep tariffs on iPhones. Also, Arista Networks (ANET) surged more than +17% and was the top percentage gainer on the S&P 500 after the company reported stronger-than-expected Q2 results and issued solid Q3 revenue guidance. In addition, Shopify (SHOP) soared over +21% and was the top percentage gainer on the Nasdaq 100 after the company posted upbeat Q2 results. On the bearish side, Super Micro Computer (SMCI) plummeted more than -18% and was the top percentage loser on the S&P 500 after the AI server maker reported downbeat FQ4 results and provided disappointing FQ1 guidance. 'There are a lot of narratives to keep track of in today's investing environment, but earnings remain the main catalyst for stocks. While pullbacks are possible — particularly due to macro-related influences and poor seasonality trends — those pullbacks will likely prove to be buying opportunities,' said Bret Kenwell at eToro. Minneapolis Fed President Neel Kashkari said on Wednesday that a slowing of the U.S. economy could warrant an interest rate cut in the near term, and he still sees two cuts by the end of the year. Also, Fed Governor Lisa Cook described the July jobs report as 'concerning' and suggested it may mark a turning point for the U.S. economy. 'These revisions are somewhat typical of turning points,' Cook said. In addition, San Francisco Fed President Mary Daly said that policymakers will likely need to adjust interest rates in the coming months to prevent further labor market weakness. Meanwhile, U.S. rate futures have priced in a 93.2% chance of a 25 basis point rate cut and a 6.8% chance of no rate change at September's monetary policy meeting. Today, investors will focus on U.S. Initial Jobless Claims data, which is set to be released in a couple of hours. Economists expect this figure to be 221K, compared to last week's number of 218K. U.S. Unit Labor Costs and Nonfarm Productivity preliminary data will also be closely watched today. Economists forecast Q2 Unit Labor Costs to be +1.6% q/q and Nonfarm Productivity to be +1.9% q/q, compared to the first-quarter numbers of +6.6% q/q and -1.5% q/q, respectively. U.S. Wholesale Inventories data will be released today. Economists expect the final June figure to be +0.2% m/m, compared to -0.3% m/m in May. U.S. Consumer Credit data will be released today as well. Economists expect this figure to be $7.40 billion in June, compared to the previous figure of $5.10 billion. In addition, market participants will parse comments today from Atlanta Fed President Raphael Bostic. On the earnings front, notable companies like Eli Lilly (LLY), Gilead (GILD), ConocoPhillips (COP), Constellation Energy (CEG), Vistra Energy (VST), and Monster Beverage (MNST) are set to report their quarterly figures today. According to Bloomberg Intelligence, S&P 500 companies are on track to post a 9.1% increase in Q2 profits from a year earlier, well above analysts' forecast of 2.8%. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.215%, down -0.35%. The Euro Stoxx 50 Index is up +1.14% this morning as upbeat earnings from some of the region's biggest companies outweighed weak economic data. Sentiment was further boosted after the Kremlin confirmed that Presidents Donald Trump and Vladimir Putin are set to hold summit talks in the coming days, fueling hopes for a potential truce in Russia's war with Ukraine. Insurance and travel stocks outperformed on Thursday. Data released on Thursday showed that German monthly industrial production saw its steepest decline in nearly a year in June, heightening concerns that Europe's largest economy may have contracted more sharply last quarter than previously estimated. Separately, data showed that Germany's goods exports to the U.S. fell further in June, as the effects of tariffs on the country's export-driven economy continued to take a toll. Meanwhile, investors await the Bank of England's monetary policy decision due later in the session, with the central bank widely expected to cut its benchmark rate by 25 basis points to 4.00%. On the trade front, Switzerland's president departed Washington without announcing any progress in reducing the 39% tariff imposed by President Trump on her country. In corporate news, Ap Moller-Maersk A/S ( rose over +2% after the shipping group boosted its full-year profit guidance. Also, Allianz SE ( climbed more than +5% on solid quarterly results. In addition, Henkel ( gained over +1% after the company posted better-than-expected Q2 results and raised the lower end of its adjusted EBIT margin forecast. Germany's Exports, Germany's Imports, and Germany's Industrial Production data were released today. The German June Exports rose +0.8% m/m, stronger than expectations of +0.5% m/m. The German June Imports rose +4.2% m/m, stronger than expectations of +1.0% m/m. The German June Industrial Production fell -1.9% m/m, weaker than expectations of -0.4% m/m. Asian stock markets today closed in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.16%, and Japan's Nikkei 225 Stock Index (NIK) closed up +0.65%. China's Shanghai Composite Index closed slightly higher today as upbeat trade data from the country helped extend the recent rally despite fresh U.S. tariff threats. Rare earth stocks gained ground on Thursday. Customs data released on Thursday showed that China's export growth unexpectedly picked up pace in July, marking the fastest increase since April, indicating that U.S. tariffs haven't slowed China's export engine, even as trade with the U.S. has declined. The trade data reinforces investor confidence that China's growth will hold up, supporting the Politburo's decision last week to refrain from additional stimulus measures. Investors are also waiting for clarity on whether the tariff truce between Beijing and Washington will be extended ahead of the August 12th deadline. U.S. President Donald Trump said on Tuesday that he was 'getting very close to a deal' with China to extend the truce. At the same time, Mr. Trump said on Wednesday that he may impose additional tariffs on Chinese goods, similar to the 25% levies placed on India over its purchases of Russian oil, depending on what happens. The U.S. president also said a tariff of around 100% would be imposed on semiconductor chips imported from countries that do not manufacture in the U.S. or plan to, though analysts noted the move would have only a limited impact on Chinese chipmakers and could even speed up domestic production. Investor attention is now on China's inflation data, scheduled for release on Saturday, for further clues about domestic demand and the overall state of the economy. The Chinese July Trade Balance stood at $98.24B, weaker than expectations of $105.20B. The Chinese July Exports rose +7.2% y/y, stronger than expectations of +5.4% y/y. The Chinese July Imports rose +4.1% y/y, stronger than expectations of -1.0% y/y. Japan's Nikkei 225 Stock Index closed higher today, tracking overnight gains on Wall Street. Utilities, financial, and technology stocks outperformed on Thursday. Preliminary data from the Cabinet Office released on Thursday showed that Japan's leading economic indicators index, which gauges the economic outlook for a few months ahead based on data such as job offers and consumer sentiment, rose to a 3-month high in June. Meanwhile, a new divergence in interpretations of the U.S.-Japan trade deal emerged on Thursday, as Japan's chief negotiator, Ryosei Akazawa, traveled to Washington to push for the implementation of a promise to reduce the car import tariff to 15%. Akazawa said earlier this week that 'there will be no stacking' of new 15% tariffs on top of existing levies, but Japanese media reports said that Washington would not exempt Tokyo from an order imposing 15% across-the-board tariffs on top of existing duties. In other news, foreign investors bought a net 193 billion yen worth of Japanese stocks in the week ended August 2nd, marking the smallest weekly total in six weeks. In corporate news, Sony Group rose over +4% after the game and camera maker lifted its annual operating profit guidance. Also, Shiseido surged about +11% after the company reported a 21.3% increase in core operating profit for the first half of the year. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -4.77% to 25.15. The Japanese June Leading Index stood at 106.1, stronger than expectations of 106.0. Pre-Market U.S. Stock Movers Apple (AAPL) rose over +3% in pre-market trading after announcing a $100 billion U.S. investment that could exempt it from President Trump's threatened tariff on chip imports. Duolingo (DUOL) soared more than +25% in pre-market trading after the language-learning app posted upbeat Q2 results and raised its full-year bookings guidance. DraftKings (DKNG) climbed over +7% in pre-market trading after the online gaming company reported better-than-expected Q2 revenue. Fortinet (FTNT) tumbled more than -20% in pre-market trading after the cybersecurity company issued weak Q3 revenue guidance. Airbnb (ABNB) slid over -5% in pre-market trading after projecting slower growth for the second half of the year. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - August 7th Eli Lilly (LLY), Gilead (GILD), ConocoPhillips (COP), Constellation Energy (CEG), Brookfield (BN), Parker-Hannifin (PH), Motorola (MSI), Vistra Energy (VST), Canadian Natural (CNQ), Monster Beverage (MNST), Flutter Entertainment (FLUT), Sempra Energy (SRE), Cheniere Energy (LNG), Becton Dickinson (BDX), Atlassian Corp Plc (TEAM), Block (XYZ), Datadog (DDOG), Wheaton Precious Metals (WPM), The Trade Desk (TTD), Take-Two (TTWO), Kenvue (KVUE), Consolidated Edison (ED), Martin Marietta Materials (MLM), Targa Resources (TRGP), Microchip (MCHP), Live Nation Entertainment (LYV), Sun Life Financial (SLF), Warner Bros Discovery (WBD), Restaurant Brands Int (QSR), Pinterest (PINS), Expedia (EXPE), Godaddy Inc (GDDY), BCE Inc (BCE), Pembina Pipeline (PBA), Insmed (INSM), Insulet (PODD), US Foods (USFD), Twilio (TWLO), Erie Indemnity (ERIE), Natera Inc (NTRA), Ralph Lauren (RL), Zimmer Biomet (ZBH), Gen Digital (GEN), Alliant Energy (LNT), Evergy (EVRG), Sharkninja (SN), Warner Music (WMG), Somnigroup International (SGI), YPF Sociedad Anonima (YPF), Nuscale Power (SMR), Nebius NV (NBIS), Hyatt (H), Solventum (SOLV), Maplebear (CART), Chime Financial (CHYM), Texas Roadhouse (TXRH), MP Materials (MP), Ascendis Pharma AS (ASND), Wynn Resorts (WYNN), Akamai (AKAM), Doximity (DOCS), Celsius (CELH), Viatris (VTRS), MACOM Tech (MTSI), Kratos Defense&Security (KTOS), ADS (WMS), EPAM Systems (EPAM), Open Text (OTEX), Nova (NVMI), Dropbox (DBX), Genpact (G), Globus Medical (GMED), Starwood Property (STWD), Stepstone (STEP), Elanco Animal Health (ELAN), UWM Holdings (UWMC), Millicom (TIGO), Karman Holdings (KRMN), Installed Building (IBP), Crocs (CROX), Post (POST), Main Street Capital (MAIN), Nexstar (NXST), D Wave Quantum (QBTS), Construction Partners (ROAD), Sezzle (SEZL), ESCO Technologies (ESE), B2Gold (BTG), Jfrog (FROG), Acushnet Holdings (GOLF), Victory Capital (VCTR), Americold Realty (COLD), SoundHound AI (SOUN), Onto Innovation (ONTO), IAMGold (IAG), Zai Lab (ZLAB), ACI Worldwide (ACIW), Adtalem Education (ATGE), Assured Guaranty (AGO), Maximus (MMS), Arcosa (ACA), Cytokinetics Inc (CYTK), Granite Construction (GVA), PTC Therapeutics (PTCT). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
6 hours ago
- Yahoo
Prediction: Nvidia Stock Is Going to Soar After Aug. 27
Key Points Nvidia recently became the world's largest company, thanks to booming sales of its data center chips. Some of Nvidia's biggest customers are on track to spend a record amount of money on AI data center infrastructure and chips this year. Nvidia will release its fiscal 2026 second quarter financial results on Aug. 27, and all signs point to another blowout result. These 10 stocks could mint the next wave of millionaires › Nvidia (NASDAQ: NVDA) stock has soared by 1,100% since the beginning of 2023, which is when the artificial intelligence (AI) revolution really started to gather momentum. It's now the largest company in the entire world thanks to its market capitalization of $4.3 trillion, but I think its stock still has room for upside. Nvidia supplies the world's most powerful graphics processing units (GPUs) for data centers, which have become the gold standard for AI development. Tech giants like Alphabet and Meta Platforms recently told shareholders they plan to spend more on AI data center infrastructure this year than originally anticipated, and they are among the chipmaker's largest customers. Nvidia is scheduled to release its financial results for its fiscal 2026 second quarter (ended July 30) on Aug. 27. Here's why I think the report could be a catalyst for more upside in its stock. AI infrastructure spending continues to climb Nvidia's H100 GPU was the hottest data center chip for AI training and AI inference workloads in 2023, when large language models (LLMs) started going mainstream. Those LLMs were great at delivering one-shot responses, which created a fast and convenient way for users to find information, but they were sometimes inaccurate. The latest generation of AI models focuses on "reasoning," which means they spend more time operating in the background to weed out errors before rendering responses. According to Nvidia CEO Jensen Huang, these models consume up to 1,000 times more tokens (words, symbols, and punctuation) than the old one-shot LLMs, so they require substantially more computing capacity. Nvidia developed the Blackwell and Blackwell Ultra GPU architectures to deliver that capacity. Blackwell Ultra GPUs like the GB300 offer up to 50 times more performance than the H100 in certain configurations, and these chips were forecast to start shipping in the second half of calendar year 2025. Since Nvidia's fiscal Q2 2026 included July, investors should expect a sales update in the company's upcoming earnings report on Aug. 27. All signs point to astronomical demand, because many of Nvidia's largest customers continue to ramp up their data center infrastructure spending. Alphabet, for instance, just raised its 2025 capital expenditures (capex) forecast from $75 billion to $85 billion. Meta Platforms also increased the low end of its capex guidance from $64 billion to $66 billion, but the company says it could spend up to $72 billion. Amazon, on the other hand, allocated $55.7 billion to capex during the first two quarters of 2025, and its guidance suggests that its full-year spending could top a whopping $118 billion. Most of that will go toward AI data center infrastructure and chips. Nvidia's upcoming report could be another blockbuster Nvidia's guidance suggests that its total revenue came in at around $45 billion in Q2 of fiscal 2026, which would be a 50% increase from the year-ago period. If previous quarters are any indication, the data center segment likely represented around 90% of total revenue, led by GPU sales. Wall Street's consensus estimate (provided by Yahoo! Finance) suggests that the company also delivered earnings of around $1 per share during the quarter, which would be a 47% jump year over year. This number can influence Nvidia's valuation, and hence the direction of its stock, so it's an important one for investors to watch. Wall Street will also focus on management's forecast for the upcoming fiscal 2026 third quarter, because it's likely to reflect demand for the new Blackwell Ultra GPUs. Analysts will be looking for revenue guidance of around $52 billion, so any number above that could be very bullish for Nvidia stock. Nvidia stock could soar after Aug. 27 Nvidia reported its financial results for the first quarter of fiscal 2026 on May 28, and its stock is up 33% since then. I think the Q2 report on Aug. 27 will be another upside catalyst, as long as the company's results don't fall short of expectations. Nvidia stock is trading at a price-to-earnings (P/E) ratio of 60.1 as of this writing. That's right in line with its 10-year average, suggesting it's at fair value. However, the picture looks very different if we value the stock based on the company's future potential earnings. Wall Street predicts that Nvidia will deliver earnings of $4.30 per share during fiscal 2026 overall, which places its stock at a forward P/E ratio of just 43. In other words, the stock would have to climb by 40% over the next six months just to maintain its current P/E ratio of 60.1. Since so many of Nvidia's top customers have increased their capex forecasts for this year, I think the company will easily meet expectations on Aug. 27, and potentially even exceed them. Either of those scenarios will lay the groundwork for more upside in its stock from here. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $462,306!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,522!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $619,036!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 4, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. Prediction: Nvidia Stock Is Going to Soar After Aug. 27 was originally published by The Motley Fool
