Latest news with #AI-server
Yahoo
5 days ago
- Business
- Yahoo
Analysts tweak Super Micro stock price target after earnings
Analysts tweak Super Micro stock price target after earnings originally appeared on TheStreet. Fans of pirate stories are no doubt familiar with the expression "Davy Jones' Locker." The phrase comes from folk stories about a demonic figure who presides over souls who were lost at sea, but it's typically used to describe the deepest part of the ocean. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Super Micro Computer () shares might not be that low, but they were seriously under water after the AI-server maker missed Wall Street's fourth-quarter-earnings expectations and fell short of first-quarter forecasts. The San Jose, Calif., company has been sailing in some pretty rough seas for a while now. Last August, short-seller Hindenburg Research released a report accusing Super Micro of what it called "glaring accounting red flags, evidence of undisclosed related-party transactions, sanctions violations, and customer troubles." A day later, Super Micro said it would delay filing its Securities and Exchange Commission Form 10-K for the fiscal year ended June 30. Super Micro CEO cites revenue growth In October, Super Micro's then-auditor, Ernst & Young, resigned, citing governance and transparency concerns. Super Micro's special committee of the board later said it found 'no evidence of misconduct' after an investigation. In December, Super Micro was dropped from the Nasdaq 100 Index and in February, the company reported its financial results just in time to meet the Nasdaq's listing deadline. More Tech Stocks: Analyst who correctly predicted Rocket Lab stock surge resets forecast Verizon Q2 earnings report surprises with remarks on tax reform Fund manager who forecast Nvidia stock rally reboots outlook Super Micro CEO Charles Liang told analysts on Aug. 5 that the company's revenue surged 47% from a year earlier. "This growth reflects continued strong demand for our AI and green computing solutions," he said, "despite the six months cash-flow impact from the delayed filing of our fiscal year 2024 10-K and delayed revenue recognition from a major new large partner." Liang said earnings per share fell 50% from a year earlier, due primarily to the impact of the Trump administration's tariffs. "Although, we had taken measures to reduce the impact, and we will see their results," he said. During the call, Liang discussed the company's strategy for competing in the AI server market. "We can grow much quicker if we don't care about the gross margin and net margin," he said. "And that's why we introduced the DC PPS, data center billing box solution. That's a total solution to support the customer to build a data center quicker, better, and also save money, more reliable." "And we provide all the infrastructure (needed), including on-site deployment, networking, cabling," Liang added. "We are able to provide a better value to the customer, not just the price war." Analyst: Super Micro falling short of targets Super Micro's shares are up nearly 50% this year, but stock was off 20.5% at last check. Investment firms expressed disappointment with the company's earnings of America Securities analyst Ruplu Bhattacharya raised his price target on Super Micro to $37 from $35 and affirmed an underperform rating on the shares. Gross margins were hurt again this quarter from inventory reserves for older generation products, as some customers chose to wait for the next generation Nvidia () B300/GB300 GPUs, the analyst wrote. '[This] can be an issue in future quarters as well, as Nvidia and AMD will continue to launch new GPUs with step function changes in functionality," Bhattacharya said in a research note. "In our opinion, some customers who spend a lot on data center racks may elect to wait to get the best functionality for their money, if their schedule can allow for it. SMCI will thus need to manage working capital efficiently and ensure that it does not overbuild older generation racks." In addition, the analyst said, in the fiscal fourth quarter a major new customer had specification changes that delayed revenue recognition. Management also highlighted a constraint on capital that limited Super Micro's ability to scale production in that quarter The analyst's fiscal 2026 revenue forecasts moved higher to $33.1 billion, in line with the company's outlook, but Bhattacharya also sees competitor Dell Technologies () gaining market share in AI servers. JP Morgan analyst Samik Chatterjee lowered the investment firm's price target on Super Micro to $45 from $46 and maintained a neutral rating on the shares, according to The Fly. .The company's fiscal Q4 results missed expectations due to capital constraints and customer indecision, Chatterjee said. The firm said the quarter was another example of Super Micro's execution falling short of management's tweak Super Micro stock price target after earnings first appeared on TheStreet on Aug 6, 2025 This story was originally reported by TheStreet on Aug 6, 2025, where it first appeared. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
21-05-2025
- Business
- Yahoo
AI Demand Lifts Dell As PCs Stall
AI server demand maintains momentum as PC remains sluggish: Wells Fargo. With quarterly earnings season kicking off, Wells Fargo analysts led by Aaron Rakers highlighted Dell Technologies (NYSE:DELL) as a top pick, driven by accelerating AI server orders even as consumer PC sales languish. The bank expects Dell to reiterate its FY26 guidance and zero in on a path to more than $10 per share in EPS, backed by over $15 billion in projected AI-server revenue next fiscal year. Nvidia's (NASDAQ:NVDA) GB200 NVL ramp from Hopper to Blackwell should further bolster Dell's data-center mix, as organizations shift capital away from muted PC upgrades toward high-performance AI infrastructure. Consensus forecasts call for adjusted EPS of $1.68 on $23.17 billion in revenue when Dell reports Q1 FY26 results after the close on May 29. By contrast, Hewlett Packard's (NYSE:HPQ) consumer-facing PC segment remains under pressure, earning HP Inc. an Underweight rating and $35 price target, while Hewlett Packard Enterprise benefits from server tailwinds and holds an Equal-weight rating with a $22 target ahead of its June 3 report and a July 9 bench trial on the Juniper acquisition. Pure Storage (NYSE:PSTG) also steps into the spotlight on May 28, fresh off a deal to serve as Meta Platforms' (NASDAQ:META) preferred storage partnera win that underscores how hyperscalers are reshaping vendor landscapes. Why It Matters: As capex shifts toward AI workloads, hardware leaders with robust server portfolios and close ties to Nvidia stand to outperform peers tethered to the soft PC market. Investors will be watching May's earnings cadenceHP on May 28, Dell on May 29 and HPE on June 3to gauge whether AI-driven demand can sustain momentum and translate into outsized financial results. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
AI Demand Lifts Dell As PCs Stall
AI server demand maintains momentum as PC remains sluggish: Wells Fargo. With quarterly earnings season kicking off, Wells Fargo analysts led by Aaron Rakers highlighted Dell Technologies (NYSE:DELL) as a top pick, driven by accelerating AI server orders even as consumer PC sales languish. The bank expects Dell to reiterate its FY26 guidance and zero in on a path to more than $10 per share in EPS, backed by over $15 billion in projected AI-server revenue next fiscal year. Nvidia's (NASDAQ:NVDA) GB200 NVL ramp from Hopper to Blackwell should further bolster Dell's data-center mix, as organizations shift capital away from muted PC upgrades toward high-performance AI infrastructure. Consensus forecasts call for adjusted EPS of $1.68 on $23.17 billion in revenue when Dell reports Q1 FY26 results after the close on May 29. By contrast, Hewlett Packard's (NYSE:HPQ) consumer-facing PC segment remains under pressure, earning HP Inc. an Underweight rating and $35 price target, while Hewlett Packard Enterprise benefits from server tailwinds and holds an Equal-weight rating with a $22 target ahead of its June 3 report and a July 9 bench trial on the Juniper acquisition. Pure Storage (NYSE:PSTG) also steps into the spotlight on May 28, fresh off a deal to serve as Meta Platforms' (NASDAQ:META) preferred storage partnera win that underscores how hyperscalers are reshaping vendor landscapes. Why It Matters: As capex shifts toward AI workloads, hardware leaders with robust server portfolios and close ties to Nvidia stand to outperform peers tethered to the soft PC market. Investors will be watching May's earnings cadenceHP on May 28, Dell on May 29 and HPE on June 3to gauge whether AI-driven demand can sustain momentum and translate into outsized financial results. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
Hewlett Packard Enterprise shares tumble as US tariffs hurt forecast
By Jaspreet Singh (Reuters) -Shares of Hewlett Packard Enterprise fell 13% on Friday, after the AI-server maker said its annual profit forecast would be hit by U.S. tariffs in an intensely competitive market. U.S. President Donald Trump imposed 25% tariffs on imports from Canada and Mexico, but exempted some goods from the countries under a North American trade pact until April 2. His additional 10% duty on Chinese goods — on top of the 10% tariff levied on February 4 — took effect on Tuesday. HPE's comments show tariffs are already affecting U.S. companies. Analysts have said trade war uncertainties could cause prices to rise, including in technology and autos sectors. "Recent tariff announcements have created uncertainty for our industry, primarily affecting our server business," CFO Marie Myers said on Thursday. "We are planning to mitigate these impacts through supply-chain measures and pricing actions." HPE is set to lose more than $3 billion in market value, if losses hold. At least five brokerages have cut price targets on the stock after the results. HPE would also cut jobs amid competition from rivals Dell and Super Micro Computer. Dell shares fell 2%, while Super Micro Computer was up 3%. "HPE will be most impacted at the moment followed by Dell and lastly, Super Micro Computer in terms of import tariff impact," Kinngai Chan, analyst at Summit Insights Group, said. Super Micro assembles products for the U.S. customers in San Jose, but sources parts from Asia, so tariffs affect the imported sub-components, Chan said, while Dell and HPE outsource their manufacturing services in Asia and Mexico. They rely on electronic manufacturing services providers such as Jabil and Celestica and Taiwan-based original design manufacturers like Quanta Computer, Wistron for product integration. The companies that sell AI-optimized servers, including HPE, are facing margin pressures due to costly production and rapid transition to the demand for more powerful chips. "Our impression is that these are temporary issues. After updating our forecasts, we expect a rough second and third quarter, but a recovery in the fourth quarter," Morningstar analyst Eric Compton said in a note. HPE trades at 8.19 times the estimates of its earnings for the next 12 months, compared with 9.74 times for Dell and 10.71 times for Super Micro Computer. Sign in to access your portfolio
Reuters
27-02-2025
- Business
- Reuters
Vistra reports quarterly profit as AI boom fuels power demand
Feb 27 (Reuters) - Power producer Vistra Corp (VST.N), opens new tab reported fourth-quarter profit on Thursday, reversing a year-ago loss, as strong electricity demand from AI-server infrastructure boosted its shares by 7.3% to $159 in premarket trading. Utilities have witnessed a huge surge in the demand for power as Big Tech pours in billions of dollars into AI technologies and the infrastructure needed to develop them. Nuclear power utilities have been the prime beneficiaries of this demand surge. Vistra's shares soared nearly 258% in 2024, compared to a 19.6% rise in the S&P 500 utilities sector (.SPLRCU), opens new tab in the same period. Its adjusted core profit from continuing operations for the fourth quarter rose to $1.99 billion, compared to $965 million the previous year, driven by higher income across most segments. The company said it is continuing to see robust load growth across markets, with energy consumption growing faster than peak load. Vistra expects current-year adjusted core profit from continuing operations to be in the range of $5.50 billion to $6.10 billion, the midpoint of which is higher than the $5.66 billion it earned in 2024. The Irving, Texas-based company's net income for the three months ended December 31 came in at $490 million, compared with a loss of $184 million during the same period a year earlier. A fire erupted last month at a battery storage facility in Moss Landing, south of San Francisco, owned and operated by Vistra and one of the world's largest, prompting evacuation of the site and surrounding areas. No injuries were reported by the company or the authorities after the fire and Vistra has not yet disclosed the details of any financial hit from the incident.
