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Business Insider
30-07-2025
- Business
- Business Insider
Super Micro Computer (SMCI) Stock Jumps 10% on Exclusive AI Server Deal and Trade Shift
Super Micro Computer (SMCI) shares rose 10.2% on Monday, to close at $60.05. The jump followed news of a new strategic partnership and reports of softened trade enforcement between the United States and China. 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. AI Partnership and Trade Pause Boost Server Outlook Digi Power X announced that Super Micro Computer will be the exclusive server supplier for its new ARMS 200 modular data center platform. The platform is designed to support up to 256 Nvidia (NVDA) B200 or B300 GPUs per pod, with each pod offering one megawatt of compute capacity. Digi Power X plans to deploy the system at its Alabama site, scaling to 40 megawatts in total. That would support around 10,240 Nvidia GPUs. The initial rollout is planned for the fourth quarter of 2025, with a full launch expected in early 2026. The deal highlights Super Micro Computer's position in the AI server infrastructure market. The company has built its product line around modular designs through its Data Center Building Block Solutions strategy. The ARMS 200 integration aligns with that approach and expands the company's reach into high-density GPU workloads. The stock also benefited from reports that the U.S. Department of Commerce may delay enforcement of export rules aimed at China. Several news outlets cited current and former officials who said the pause is part of a broader effort to keep trade channels open. Easing trade risk supports hardware and semiconductor firms that serve global customers. Super Micro Computer, which has exposure to Asia, may benefit if current restrictions stay limited through the next quarter. SMCI is set to report fiscal fourth-quarter earnings on August 5. Analysts forecast earnings of $0.45 per share, down 30.2% from last year. Revenue is expected to rise 12.8% year-over-year to $5.99 billion. The stock is up nearly 100% year-to-date and has gained 112% over the past six months. Nvidia and Vertiv Also Stand to Benefit Nvidia and Vertiv Holdings (VRT) also stand to gain from rising demand for modular AI data centers. Nvidia supplies the GPUs, and Vertiv Holdings provides thermal and power systems used in high-density builds. All three names are linked by the growing need for AI-ready infrastructure. Is SMCI Stock a Good Buy? an average SMCI stock price target of $42.85. This implies a 28.64% downside.
Yahoo
09-02-2025
- Business
- Yahoo
Why Super Micro Computer (SMCI) Soared Last Week?
We recently published a list of . In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other firms that soared last week. Last week saw volatile trading in the stock market as investors scrambled to react from a series of positive and negative catalysts which sparked buying and selling positions across the board. On Friday alone, Wall Street's major indices fell into the red territory over renewed fears of growing trade tensions from some of the world's largest economies, coupled with expectations of a higher inflation rate. However, 10 firms defied a broader market slump, posting impressive gains in just a week's trading. To come up with last week's biggest advancers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume. A team of technicians in a server room, testing and managing the newest server solutions. Super Micro Computer, Inc. (NASDAQ:SMCI)'s share prices jumped by 27.2 percent in just one week, buoyed by a flurry of positive news that sparked buying appetite. Last week alone, Super Micro Computer (NASDAQ:SMCI) announced it was ramping up to full production of its end-to-end AI data center Building Block Solutions accelerated by the Nvidia Blackwell platform. Secondly, the company is set to provide a long-awaited business update on Tuesday, February 11, where investors will be watching out for the company's delayed annual report for the 12 months ending June 2024, and whether it will be able to submit all delayed filings by February 25, the final deadline for all delayed filings, which is a key factor to keeping its position as a publicly listed company. It can be learned that Super Micro Computer (NASDAQ:SMCI) was temporarily delisted from Nasdaq in 2018 after failing to submit financial statements on time. It returned two years later, and was again penalized by the SEC for 'widespread accounting violations.' Overall, SMCI ranks 8th on our list of firms that soared last week. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
07-02-2025
- Business
- Globe and Mail
Super Micro Computer Popped on Nvidia Capacity Update. Should You Buy, Sell, or Hold SMCI Stock?
Super Micro Computer (SMCI) saw its shares spike for the second straight session after the company revealed that it was increasing 'full production availability of its end-to-end AI data center Building Block Solutions accelerated by the NVIDIA Blackwell platform.' This comes on the back of a rally after the company said it would give a second-quarter update after markets close next Tuesday, Feb. 11. Mired in troubles due to a scathing report by the now-defunct short-seller Hindenburg Research, the resignation of its auditor and the looming threat of its delisting from Nasdaq due to the delayed filing of its annual report and other required financial statements, is SMCI stock (down nearly 50% over the past year) finally out of trouble? Let's try and find out. 4 Reasons to Buy SMCI Stock Market Growth: SMCI is a leading provider of high-performance server and storage solutions for data centers, enterprise information technology, cloud computing, and AI-driven applications. The AI server market is expected to grow at an 18% CAGR, reaching $177.4 billion by 2032, while data center storage capacity is projected to more than double by 2027. The rapid rise of large-scale AI models is accelerating demand for cutting-edge infrastructure. As companies worldwide race to scale AI capabilities, SMCI's servers and storage solutions are well-positioned to benefit from the increased need for high-performance computing hardware. Steps to Address Compliance Issues: SMCI has made steady progress toward resolving compliance concerns, providing a catalyst for share price appreciation. The company successfully submitted a compliance plan to Nasdaq, which was accepted, and appointed BDO as its new auditor after the resignation of EY. These steps signal a commitment to transparency and governance improvements, potentially reducing risk perception among investors. Competitive Advantage: As I wrote previously, SMCI's modular design approach enables rapid customization of server configurations, a key differentiator in a market where flexibility is critical. The company's recent milestones include shipping over 100,000 GPUs per quarter and delivering 2,000 liquid-cooled racks since June 2024. Its leadership in liquid cooling technology is particularly noteworthy, as energy-efficient cooling solutions are becoming essential for AI-driven data centers. By reducing capital expenditures for data center operators, SMCI is positioning itself as a cost-effective and innovative player in the space. Above-Average Growth Prospects: SMCI stock trades at 11.34x forward earnings and 0.75x forward sales. While these metrics indicate that Super Micro is undervalued, they are simply factoring in the uncertainty and risks that the company faces. 4 Reasons to Sell SMCI Stock Q1 Results Delay: It was bad news for investors when SMCI delayed releasing its results for the first quarter of its fiscal 2025, but it was even worse when its preliminary results disappointed. The company lowered its revenue guidance to the range between $5.9 billion and $6 billion, down from $6 billion to $7 billion. The company also lowered its guidance for earnings per share. DOJ Scrutiny: The resignation of EY and a Department of Justice investigation majorly hurt SMCI stock. Plus, as my colleague Oleksandr Pylypenko wrote, this is not the first time that Super Micro has experienced these issues. The company was previously delisted from the Nasdaq in 2018 after delaying its regulatory filings. This led to the departure of former CFO Howard Hideshima. Increased Competition: Regulatory and governance issues have created openings for competitors to capture market share. And compared to its competitors, Super Micro may be harder to trust due to its regulatory issues. As Nvidia (NVDA) reportedly works to form relationships with alternate suppliers, investors should closely watch the impacts on Super Micro's results. Lastly, the AI server business is extremely capital-intensive and Super Micro is having trouble raising funds at an interest rate that it would be willing or able to pay. Without funding, Super Micro could struggle to ramp up production to meet demand. Delisting Threat: Delisting is bad news for any company. If Super Micro were to be delisted from the Nasdaq, its share price would likely fall in response to institutional investors dumping their stakes. What Do Analysts Say About Super Micro Computer Stock? Super Micro stock is now a 'Hold' on Wall Street, with a mean target price of $49.56. This denotes upside potential of about 46.5% from current levels. Yet, out of 12 analysts in coverage, only 2 still rate SMCI a 'Strong Buy' and one a 'Moderate Buy,' with 8 maintaining a 'Hold' and 2 calling it a 'Strong Sell.'
Yahoo
07-02-2025
- Business
- Yahoo
NVIDIA stock soars as capex budgets swell and Blackwell ramps
NVIDIA (NASDAQ:NVDA) stock surged higher Wednesday, bolstered by continued Capex spending boosts by hyperscalers and the ramping of its new Blackwell chip. NVIDIA shares closed up 5.35% to $124.83. On its conference call Tuesday evening, Google-parent Alphabet (NASDAQ:GOOGL) said they would spend $75 billion in capex in 2025 versus prior analyst expectations of $58 billion. "Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses. We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025," Alphabet said. Other large NVIDIA clients, Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META), also said they would increase their budgets for AI infrastructure. Shares of NVIDIA have been under pressure for the past few weeks after China AI upstart DeepSeek raised questions about overall capex budgets after releasing their AI model with a very minimal amount spent and using old NVIDIA chips. NVIDIA's stock is down 9% year-to-date. In addition to Google's higher Capex spending, AI server maker and NVIDIA partner Supermicro (NASDAQ:SMCI) announced Wednesday the full production availability of its end-to-end AI data center Building Block Solutions, accelerated by the NVIDIA Blackwell platform. "In this transformative moment of AI, where scaling laws are pushing the limits of data center capabilities, our latest NVIDIA Blackwell-powered solutions, developed through close collaboration with NVIDIA, deliver outstanding computational power," said Charles Liang, president and CEO of Supermicro. All eyes will be fixated on NVIDIA going into the company's all-important earnings report on February 26th. Related Articles NVIDIA stock soars as capex budgets swell and Blackwell ramps Sonos announces 12% workforce reduction and reorganization for improved operating model IBM files for multiple euro-denominated notes with varying due dates Sign in to access your portfolio
