Latest news with #QuinnBolton
Yahoo
11 hours ago
- Business
- Yahoo
Credo Stock Surges Over 17% on 800G Win, Hyperscaler Push
Credo Technology (NASDAQ:CRDO) jumped more than 17% after Needham hiked its price target to $85, citing huge hyperscaler wins and a diversifying customer roster that propelled Q4 results. Warning! GuruFocus has detected 3 Warning Signs with CRDO. The optical?component maker saw revenue jump 126% in fiscal 2025 and now targets an 85% leap to over $800 million in fiscal 2026. Needham's N. Quinn Bolton notes Amazon (NASDAQ:AMZN) still accounts for 61% of sales (down from 86% last quarter), while Microsoft (NASDAQ:MSFT) and xAI contributions surged to 12% and 11%, respectivelyup from negligible levels in Q3. Management expects to keep three-to-four customers above 10% of revenue through FY26, with Meta (NASDAQ:META) and Oracle (NYSE:ORCL) slated to join the hyperscaler list. Credo also announced an 800G optical DSP design win for a major hyperscalerpotentially its biggest everthat should ramp this year. The company showcased its new 3nm, 200G-per-lane DSP capable of 1.6Tb/s speeds with leading signal integrity and power efficiency, signaling continued investment in next-gen data-center connectivity. Investors should care because Credo's shift from a single?customer cadence toward a balanced hyperscaler base reduces concentration risk and underpins a steep growth trajectory as demand for 800G links explodes. 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
5 days ago
- Business
- Yahoo
Marvell Shares Tumble Amid Concerns Over Next-Gen AI Ramp
May 30 - Shares of Marvell Technology (NASDAQ:MRVL) slid 4% in premarket trading Friday after the company posted first-quarter results and updated its guidance. The specialty semiconductor firm reported a GAAP gross margin of 50.3% and a non-GAAP gross margin of 59.8%. GAAP diluted EPS came in at $0.20, with non-GAAP diluted EPS of $0.62. Cash flow from operations was $332.9 million, bolstered by its positioning in the custom AI infrastructure market, which may drive further growth. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Bank of America analyst Vivek Arya, who rates the stock Buy with a $72 target, said confirmation of Marvell's pipeline ahead of its June 17 AI Investor Event could boost confidence. However, limited earnings revisions are likely to keep the shares in check near term, as the Microsoft (NASDAQ:MSFT) chip deal won't begin until 2026. Needham's N. Quinn Bolton trimmed his price target to $85 from $100, citing valuation compression. He maintained a Buy rating, noting Marvell has addressed next-generation XPU concerns and that its Microsoft and Amazon (NASDAQ:AMZN) agreements remain intact. The company has secured 3 nm wafer and packaging capacity for production in calendar 2026 and expects custom XPU revenue to grow in fiscal 2026 and beyond. Morgan Stanley's Joseph Moore said his team may have overestimated pricing or volumes for Marvell's custom AI business with Amazon's Trainium processors, but added other segments are performing well and management remains confident in its AI roadmap. Shares of peers Broadcom (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA) also inched lower. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Marvell Shares Tumble Amid Concerns Over Next-Gen AI Ramp
May 30 - Shares of Marvell Technology (NASDAQ:MRVL) slid 4% in premarket trading Friday after the company posted first-quarter results and updated its guidance. The specialty semiconductor firm reported a GAAP gross margin of 50.3% and a non-GAAP gross margin of 59.8%. GAAP diluted EPS came in at $0.20, with non-GAAP diluted EPS of $0.62. Cash flow from operations was $332.9 million, bolstered by its positioning in the custom AI infrastructure market, which may drive further growth. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Bank of America analyst Vivek Arya, who rates the stock Buy with a $72 target, said confirmation of Marvell's pipeline ahead of its June 17 AI Investor Event could boost confidence. However, limited earnings revisions are likely to keep the shares in check near term, as the Microsoft (NASDAQ:MSFT) chip deal won't begin until 2026. Needham's N. Quinn Bolton trimmed his price target to $85 from $100, citing valuation compression. He maintained a Buy rating, noting Marvell has addressed next-generation XPU concerns and that its Microsoft and Amazon (NASDAQ:AMZN) agreements remain intact. The company has secured 3 nm wafer and packaging capacity for production in calendar 2026 and expects custom XPU revenue to grow in fiscal 2026 and beyond. Morgan Stanley's Joseph Moore said his team may have overestimated pricing or volumes for Marvell's custom AI business with Amazon's Trainium processors, but added other segments are performing well and management remains confident in its AI roadmap. Shares of peers Broadcom (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA) also inched lower. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast
Super Micro Computer (NASDAQ:SMCI) stock price dropped on Wednesday after the company reported worse-than-expected third-quarter financial results on Tuesday. Wall Street analysts rerated the stock. Needham analyst Quinn Bolton reinstated Super Micro Computer with a Buy and a $39 price target. Wedbush analyst Matt Bryson reiterated Super Micro Computer with a Neutral rating and lowered his price target to $30 (from $40). JP Morgan analyst Samik Chatterjee gave Super Micro Computer a neutral rating and a price target of $35 (down from $36).Needham: Super Micro posted third-quarter revenue of $4.6 billion, -19.0% Q/Q and +19.5% Y/Y, in line with the company's preliminary announcement but well below previous guidance (midpoint at $5.5 billion). The weakness was due to customers waiting and evaluating next-gen AI platforms (Blackwell), which led to delayed commitments. The quarterly adjusted gross margin came in at 9.7%, below the Street's 10.1% estimate. Margins were negatively affected by higher inventory reserve charges on older Hopper systems, lower volume, and accelerated new-product costs. The quarterly adjusted EPS was $0.31, which is in line with the preliminary announcement but well below the previous guidance (midpoint at $0.54). The miss was driven by lower revenue and margins. The company guided fourth-quarter revenue to $6.0 billion at the midpoint, +30.4% Q/Q and +13.0% Y/Y, well below Bolton's estimate of $7.0 billion and the Street's estimate of $6.59 billion. The quarterly adjusted EPS should come in at $0.45 at the midpoint, below Bolton's prior estimate of $0.74 and the Street's estimate of $0.64. Super Micro has been at the forefront of liquid cooling technology, and the announcement of DLC-2 further solidifies its leadership. Management highlighted product transitions from Hopper to Blackwell and tariff uncertainty as key contributors to near-term weakness. Despite near-term headwinds, Bolton became incrementally more positive for the company as it filed its 2024 10-K and 2025 10-Qs and added to its management bench. The analyst found the valuation extremely attractive for a company targeting AI/HPC end markets and being at the forefront of liquid-cooled data centers. Wedbush: Bryson noted that GB200 and B200 availability was limited early in the quarter, with initial parts primarily shipping to select Nvidia Corp (NASDAQ:NVDA) accounts. This situation has been largely rectified, supporting a rebound in the next quarter. Super Micro is effectively guiding for a slight dip in gross margins on older products that it likely needs to discount to sell. The analyst noted OEMs were pushed to take Hopper, given B200 shortages. He said Super Micro's choice to step away from guiding for a gross margin rebound was properly pragmatic, particularly given uncertainty around the US administration's next steps. In the intermediate to longer term, Bryson expects better pricing and margins on initial B200 servers in light of the tight supply. Super Micro's diversified manufacturing presence could allow it to better navigate US policy than some of its peers. Bryson projected fourth-quarter revenue of $5.95 billion and adjusted EPS of $0.45. JP Morgan: Super Micro posted results primarily in line with the pre-announcement that had represented a roughly $900 million miss on revenue and an approximately 200 bps+ miss on gross margins to the earlier stated outlook for the fiscal third quarter. With the company pre-announcement implying that the miss was led by one-off factors like customer platform decisions and inventory write-downs, expectations were for a sharper earnings rebound through revenue and margins. However, the update from the company about fiscal fourth-quarter expectations highlights customer push-out of deployments in fiscal third-quarter was not limited to one or two customers and represents an ongoing challenge about customers deciding between multiple platforms as well as data center readiness to accept shipments as planned. Lower cost inventory-related headwinds to gross margins are still not entirely behind the company, with up to 100 bps of gross margin impact in the fiscal fourth quarter, driving guidance for ~10% gross margins. There remains the potential for further risks to gross margin if the company does not manage to sell its Hopper inventory. On the business drivers, the company continued to highlight leadership relative to the time to market for the latest technology-based servers in the high-growth AI servers market, as well as the expected launch of Data Canter Building Block Solutions (DCBBS), featuring their next-generation Direct Liquid Cooling (DLC 2.0) capabilities. Chatterjee projected fourth-quarter revenue of $6 billion and adjusted EPS of $0.44. Price Action: SMCI stock closed at $32.48 on Wednesday. Read Next:Photo courtesy: CryptoFX via Shutterstock Date Firm Action From To May 2021 Susquehanna Maintains Positive May 2021 Northland Capital Markets Maintains Outperform Jun 2020 Northland Capital Markets Initiates Coverage On Outperform View More Analyst Ratings for SMCI View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report This article Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Business Insider
08-05-2025
- Business
- Business Insider
‘Jump on the Bandwagon,' Says Quinn Bolton About Super Micro Computer Stock
Super Micro Computer (NASDAQ:SMCI) has now put the auditing drama of the past year behind it, and with the threat of NASDAQ delisting no longer looming, investors could once again focus solely on the company's performance. However, its latest earnings failed to impress. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. For the third quarter of fiscal 2025 (the March quarter), Supermicro delivered $4.6 billion in revenue, a figure that matched its preliminary estimate and marked a 19.5% year-over-year increase. However, the number fell $450 million short of Wall Street's consensus and significantly missed the company's earlier midpoint guidance of $5.5 billion. Management cited system transitions and tariffs as major challenges impacting short-term demand. Customers are apparently cutting back on orders for Hopper systems, prompting the company to write down the value of legacy products, while many are waiting for the release of Blackwell systems. As a result, some expected revenue has been delayed from FQ3 to FQ4 and beyond. Tariffs and broader economic uncertainty were also mentioned as reasons for customer delays. Importantly, the company withdrew its $40 billion revenue target for FY2026 due to reduced visibility. The expected pushouts didn't help the near-term outlook though. For FY2025, the company revised its revenue guidance downward from the range of $23.5 billion to $25 billion to between $21.8 billion and $22.6 billion, falling short of the $23.5 billion consensus estimate. Meanwhile, adj. gross margin declined from 11.9% in Q2 to 9.7%, with the drop including an approximately 200 basis point impact from inventory write-downs related to older-generation Hopper systems. That said, at the bottom line, adj. EPS of $0.31 outpaced consensus by $0.01. While the lackluster showing generated a negative response from investors, Needham's Quinn Bolton likes how the story is developing and thinks it's time to dive back in. 'Despite near term headwinds, we are becoming incrementally more positive on the company as it has filed its 2024 10-K and F1Q25 and F2Q25 10-Qs and added to its management bench,' the 5-star analyst said. 'We find the valuation to be extremely attractive for a company targeting AI/HPC end markets and at the forefront of liquid cooled data centers. With filing risks behind the company, along with an attractive valuation, we are stepping off the sideline and resuming coverage with a Buy. ' Along with that Buy rating, Bolton set a $39 price target for SMCI shares, implying the stock will appreciate by 20% in the months ahead. (To watch Bolton's track record, click here) 5 other analysts are in the bullish camp, while 5 are sitting on the fence, and two are leaning bearish. That mix lands SMCI a Moderate Buy consensus rating. With an average price target of $38.67, Wall Street is eyeing a potential 19% return over the next year. (See SMCI stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
