Latest news with #HopperGPUs
Yahoo
30-07-2025
- Business
- Yahoo
Super Micro Stock Surges Before Q4 Earnings. Is A Correction Coming?
Super Micro Computer (SMCI) will announce its fourth quarter fiscal 2025 financial results on Tuesday, Aug. 5. SMCI stock has been on a tear ahead of Q4 earnings, rallying 63.7% over the past three months. This reflects a sharp rebound that signals the market's renewed confidence in the company's AI-driven future. Fueling the recent surge is robust demand for Supermicro's AI solutions, which are critical components in high-performance computing infrastructure. The stock received an additional boost from a $20 billion partnership with Saudi Arabia-based DataVolt. This strategic deal expands Supermicro's global footprint and fortifies its pipeline for future growth. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The recent momentum marks a significant turnaround for a company that, just last year, found itself in the crosshairs of short-seller Hindenburg Research. The report leveled serious allegations, including accounting irregularities, causing SMCI shares to tumble. The situation escalated when Super Micro delayed its annual SEC filings, raising concerns over possible delisting from the Nasdaq Exchange. However, the company managed to weather the storm. By submitting its overdue financials, Super Micro narrowly avoided a delisting and has since regained the market's trust, as reflected in the recent rally in its price. Still, the road hasn't been entirely smooth. In its fiscal third quarter, Super Micro reported $4.6 billion in revenue, falling short of expectations. Management pointed to a temporary pause in purchasing as customers considered whether to invest in Nvidia's (NVDA) existing Hopper GPUs or wait for the next-generation Blackwell platform. As a result, certain orders were deferred, although the company expects many of those deals to materialize by the end of September. Given the recent rally, it's clear the market is already pricing in acceleration in Super Micro's top-line growth in Q4. That sets the bar high for the upcoming earnings report. Any signs of continued hesitation in AI infrastructure spending or a cautious tone from management could trigger notable volatility in SMCI shares. AI-Driven Demand to Boost SMCI's Growth Super Micro's top line could continue to benefit from high AI-driven demand. The company's management expects its top line to be in the range of $5.6 billion to $6.4 billion, reflecting an increase of 5% to 21% over the $5.3 billion reported in the same quarter last year. The increase in sales of its server and storage systems, primarily driven by the rise in demand from customers for GPU servers, high-performance computing, and rack-scale solutions, will drive its revenue. This top-line growth will likely be driven by the rising demand for SMCI's GPU servers and high-performance computing systems. As AI applications become more sophisticated and widely adopted across industries, both enterprise clients and cloud service providers are leaning heavily on SMCI's server and storage solutions. AI GPU platforms accounted for more than 70% of the company's revenue in Q3, reflecting the solid demand for its platform. The company's future pipeline looks promising, with strong momentum in design wins and customer interest. SMCI is ramping up production of its Data Center Building Block Solutions (DCBBS), built on new-generation GPU platforms, which will accelerate future growth. Further, SMCI is a leader in energy-efficient computing, especially through its direct liquid cooling (DLC) technology. Last year, it delivered 4,000 high-powered AI racks equipped with DLC, significantly reducing energy costs for clients. With its next-generation cooling solution DLC-2 on the horizon, SMCI is well-positioned to drive further adoption as companies become increasingly focused on sustainability and cost efficiency. While revenue is expected to climb, its profit margins could remain under pressure. Management has flagged higher inventory reserves for older-generation products as a concern during the Q3 conference call, and gross margin is projected to dip to around 10%, down from 11.2% a year earlier. On the earnings front, the company expects earnings per share (EPS) in the range of $0.40 and $0.50 in Q4. Analysts expect the company to report EPS of $0.35, which reflects a 36.4% year-over-year decline. Analysts' Recommendation for SMCI Stock Ahead of Q4 Earnings Wall Street analysts, while acknowledging the company's momentum, remain conservative. The consensus rating on SMCI is 'Hold,' and the average price target of $43 suggests the stock could see a pullback of more than 25% from current levels. The Bottom Line Super Micro has made a strong comeback from past regulatory and reputational challenges, positioning itself as a key player in high-performance and energy-efficient computing. However, with Q4 earnings on the horizon and the recent rally in its price, expectations are sky-high. Any signs of margin pressure, deferred orders, or cautious management commentary could prompt a sharp correction. While the long-term growth narrative remains intact, SMCI could remain highly volatile in the short term. On the date of publication, Sneha Nahata 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 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
CNBC
28-05-2025
- Business
- CNBC
Nvidia is due to post earnings after the bell. What analysts are saying ahead of the report
The bullish thesis on Nvidia remains in place ahead of earnings, but analysts have questions about the company's path forward. The tech giant is due to post fiscal first quarter results after the bell. Analysts polled by LSEG expect the chipmaker to report adjusted earnings of 93 cents per share on $43.28 billion in revenue for the quarter that ended in April. Those figures signal year-over-year earnings and revenue growth of 52% and 62%, respectively. Analysts will look for clues on how China restrictions are impacting sales — and whether the AI demand that's powered markets in recent years remains strong. Nvidia has said it would take a $5.5 billion charge in the quarter tied to these restrictions. CEO Jensen Huang also noted that the policies have slashed the company's China market share from 95% to 50%. Still, shares have jumped more than 24% over the past month, as announcements from key hyperscalers have revived the excitement around AI. Alphabet's Google last week announced several new AI-powered tools at its I/O developer conference and Microsoft launched its Claude 4 AI model . And while the stock remains below its January record, analysts polled by LSEG think Nvidia has room to run. The consensus price target suggests roughly 21% upside ahead. Of the 64 analysts covering Nvidia, 56 have a strong buy or buy rating on shares, per LSEG. Take a look at what some major analysts have to say ahead of earnings: Morgan Stanley: remains overweight and $160 price target Analyst Joseph Moore advised clients continue buying the stock for the long haul ahead of the report. His $160 price target suggests 18% potential upside. "Sell side does not appear to have universally modeled the impact of H20 ban, so there is some downside potential vs. stale consensus. But if mgmt is convincing that supply of racks and non rack Blackwell is improving, and that there is 2h acceleration, it should not matter," Moore wrote in a Tuesday note. Deutsche Bank: maintains hold rating and $125 price target Analyst Ross Seymore likes Nvidia but thinks its overvalued high after its recent run-up over the past month. He still expects the company to deliver a revenue beat, driven by growth in Blackwell and Hopper GPUs with potential for upside if China-driven demand was larger-than-expected before the H20 ban. "Overall, while geopolitical concerns appear to have lessened and we continue to see NVDA as the undisputed leader in AI processing/ enablement, we believe much of this goodness is fairly reflected in NVDA's share price," Seymore wrote in a May 21 note. Bank of America: maintains buy rating and $160 price target Analyst Vivek Arya warned of a "risk of messy Q2 guide" and said that, depending on Nvidia's original timing of its China shipments, the disconnect between consensus estimates on lost sales and investors' expectations could be magnified. "Despite these near-term headwinds we maintain Buy on NVDA, a top sector pick given its unique leverage to the global AI deployment cycle, and possibility for China sales recovery on new redesigned/compliant products later in the year," Arya said in his recent note to clients. Wolfe Research: keeps outperform rating and $150 price target Analyst Chris Caso's price target signals upside of 10% from Tuesday's close. "What's important is that we strongly believe the rack issues are temporary (and improving), while the demand trends are secular and durable," Caso said. "Since the stock has recovered heading into the report, and we're not expecting upside, we don't consider this quarter's guidance to be a catalyst. We also can't rule out a speed bump due to slower rack production. But there's also little question that there's more than adequate demand for Blackwell, as evidenced by customers' capex commentary, and the need for inference capacity to drive reasoning models ... NVDA remains one of our favorite ideas. Oppenheimer: keeps outperform rating, $175 price target Analyst Rick Schafer's price target suggests roughly 29.2% potential upside for Nvidia, one of the more bullish forecasts on the Street. "We see upside F1Q (Apr) results and a roughly in-line F2Q (Jul) outlook, despite the loss of H20 sales to China following US govt restrictions. China is now < 5% of sales. Production of flagship GB200 rack-scale systems appears to have moved past their initial "growing pains," he wrote in a note. "NVDA remains best positioned in AI, in our view, benefiting from full-stack AI hardware/software and unique rack-level approach." Piper Sandler: maintains overweight and $150 price target Analyst Harsh Kumar said he's "looking for tea leaves for a strong back half of the year" rather than putting up high expectations for Nvidia's latest quarter. This upcoming print is likely the last of negative news for Nvidia this year, he said. "All in all, we think that NVDA is poised to be flat to down into the print this week. We think that April quarter is poised for a miss in revenues largely from macro uncertainty and from the H20 ban ... We note that for the most part the factors resulting in a miss are outside the company's control. Despite this, we see a strong back half of the year given HPC capex coming on strong coupled with macro forces improving driven by sovereign investments following the announcements of several large deals over recent weeks. We advise investors to weather the uncertainty and stay long the stock," he said in a Tuesday note to clients.
Yahoo
20-03-2025
- Business
- Yahoo
NVIDIA Upbeats as Morgan Stanley Grows 'More Bullish' After GTC
Nvidia (NVDA, Financial) remains in the news on Thursday as Morgan Stanley expressed a more bullish view on the company's trajectory following an analyst Q&A at its GTC event. Morgan Stanley analyst Joseph Moore highlighted that management's energy for the Blackwell phase was notable, despite cautious market sentiment. Warning! GuruFocus has detected 3 Warning Signs with NVDA. During his keynote, Nvidia CEO Jensen Huang stated that major cloud providers, Amazon Web Services, Azure, Google Cloud Platform, and Oracle Cloud, have placed orders for 3.6 million Blackwell GPUs for 2025, a jump from 1.3 million Hopper GPUs in 2024. Moore explained that sharing these figures aimed to refocus the narrative on strong demand, addressing concerns over shifting Open AI spending and ASIC pressures. He noted that cloud capital expenditures should remain robust through 2025, with IT spending and AI investments driving growth in coming years. Furthermore, Moore reiterated his Overweight rating and a $162 price target on Nvidia, while management outlined plans to meet increasing inferencing demands at scale, underscoring confidence in Nvidia's long-term prospects. Investors remain optimistic about growth. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Wall Street Stands by Nvidia-Analysts Dismiss AI Slowdown Fears
Wall Street analysts remain firmly bullish on Nvidia (NASDAQ:NVDA), even as the company navigates a transitional quarter shifting from Hopper GPUs to its next-gen Blackwell line. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Morgan Stanley analyst Joseph Moore raised his price target from $152 to $163, maintaining an Overweight rating. He called Nvidia's Q4 a "transitional" quarter but highlighted the strong demand for Blackwell GPUs, which generated $11 billion in revenue during the period. Despite "unprecedented complexity" in launching new form factors, Nvidia still beat revenue guidance by nearly $2 billion, a feat Moore noted as unmatched in semiconductor history. Moore acknowledged gross margin pressures tied to GB200 challenges, but from his industry checks, those issues are improving. He also dismissed fears of an AI spending slowdown, arguing that while AI demand may eventually be cyclical, it's nowhere near the end of its growth phase. Investor sentiment has been mixed, with concerns over Blackwell execution, DeepSeek's AI advances, and rumors that Microsoft (NASDAQ:MSFT) is pausing land acquisitions. Moore called the latter speculation "wrongfully being seen as the end, literally days", predicting enthusiasm will return within six to nine months. Despite near-term skepticism, analysts see Nvidia's AI-fueled growth staying strong through the year, with Blackwell demand expected to remain exceptional. This article first appeared on GuruFocus. Sign in to access your portfolio
