Latest news with #RupluBhattacharya
Business Insider
04-08-2025
- Business
- Business Insider
Super Micro Computer (SMCI) Is About to Report Q4 Earnings Tomorrow. Here Is What to Expect
AI server maker Super Micro Computer (SMCI) is set to release its Q4 FY25 results after the market closes on August 5. The stock has gained above 85% year-to-date, as investor sentiment has improved in recent months, helped by new partnerships. Recently, it was named the exclusive server supplier for Digi Power X's ARMS 200 data center platform. The company also signed a $20 billion deal with DataVolt to build large AI campuses in Saudi Arabia and the U.S. 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.
Miami Herald
12-07-2025
- Business
- Miami Herald
Bank of America drops shocking call on Super Micro stock
Few stocks have captured the AI server boom like Super Micro Computer (SMCI) . Skyrocketing this year, Super Micro's become a go-to for investors betting on liquid-cooled racks and next-gen AI data centers. Don't miss the move: Subscribe to TheStreet's free daily newsletter Its fundamentals are excellent, as the orders keep piling up, with the stock crushing broader markets. However, a surprise twist could test just how bulletproof that rally really is. A fresh take on Super Micro's future just dropped, and it could leave its most die-hard fans bracing for a shock they didn't see coming. Image source: Bloomberg/Getty Images Super Micro flipped the script, sprinting to the front of the AI server race and catching its rivals off guard. A glimpse of that can be seen from its incredible top-line expansion, with AMD currently posting over 82% year-over-year growth in sales. AMD's secrets have been complete AI "factories" layered with Nvidia's Blackwell GPUs and AMD's EPYC chips. Earlier, it used to sell just custom chassis, but now it bundles everything from switching boards and dense GPU racks to advanced cooling. Related: JPMorgan delivers blunt warning on S&P 500 That's essentially everything big cloud providers and enterprise customers need to train huge AI models. Arguably, the star of the show this year has been the 4U RTX PRO server. It packs eight Nvidia Blackwell RTX 6000 cards and next-gen PCIe Gen 6 networking to move 800 Gbps of data through a single chassis. Early performance tests have shown it efficiently matches larger, pricier setups. Those margins are likely to be critical going forward. Gross margins dropped from 18% in 2023 to under 10% expected later this decade. Still, Super Micro keeps underpricing bigger rivals without sacrificing performance. Corporate governance hasn't been smooth sailing, either. Delayed audits and a Justice Department probe forced the business to tighten controls and bring in a new auditor. On top of that, its supply chain moves have also been mighty ambitious. More Tech Stock News: Tesla's next bet could flip the robotaxi raceCathie Wood shells out $13.9 million for one high-stakes biotech stockApple's quiet shake-up could redefine its future Nevertheless, a $20 billion deal with DataVolt should boost hyperscale capacity, and a new plant in the Netherlands could help dodge chip shortages and tariffs. There are a ton of challenges for it to contend with, though. Dell and HPE are pushing their own AI server stacks, pressurizing Super Micro to cut prices even more. Any delays in scaling its European plant or new export curbs on GPUs could crimp growth fast. Hence, despite the transformation from a boutique parts maker to a serious AI hardware architect, Super Micro needs to continue executing impeccably to stay ahead. Super Micro Computer has emerged as a big winner on the stock market this year, gaining over 60%, but Bank of America's recent note could put a dent in that rally. Analyst Ruplu Bhattacharya restarted coverage with an Underperform rating, slapping on a fresh $35 price target. That implies a worrying 30% drop in stock price from where it trades currently. Bhattacharya feels Super Micro's profit machine could run into a wall. Competition is heating up quickly, as tech darlings like Dell and HP Enterprise muscle into the AI server space. These giants have the scale and deep ties with big-ticket customers that could force Super Micro to cut prices while staying competitive. Related: Veteran analyst drops jaw-dropping price target on AppLovin stock Right now, Super Micro's gross margin currently stands at 11.3% for FY25, but BofA expects that to drop to 9.4% by FY27. That's a deep slide for a hardware company trying to keep investors excited. To make matters worse, Bhattacharya warns of shortages of critical components, including high-end GPUs and liquid cooling parts. In addition, despite the company being first to the market with advanced liquid cooling tech, that lead may not last long. Rivals are racing to adopt the same tech, which could wipe out a key competitive edge. Top that off with Super Micro's ongoing legal concerns and weak internal controls, and Bhattacharya thinks the risks now outweigh the upside. Although he does see sales remaining strong, lower profits could overshadow top-line growth. Related: Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
11-07-2025
- Business
- Business Insider
Bank of America Securities Keeps Their Hold Rating on Sanmina-Sci (SANM)
In a report released today, Ruplu Bhattacharya from Bank of America Securities maintained a Hold rating on Sanmina-Sci, with a price target of $120.00. The company's shares closed today at $104.34. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Bhattacharya is a 3-star analyst with an average return of 4.4% and a 54.62% success rate. Bhattacharya covers the Technology sector, focusing on stocks such as Sanmina-Sci, Flex, and Concentrix. Sanmina-Sci has an analyst consensus of Hold, with a price target consensus of $100.00. SANM market cap is currently $5.47B and has a P/E ratio of 23.94. Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SANM in relation to earlier this year. Most recently, in May 2025, Susan A Johnson, a Director at SANM sold 787.00 shares for a total of $66,761.21.
Yahoo
03-07-2025
- Business
- Yahoo
BofA Maintains Neutral Stance on Concentrix (CNXC) as AI and Margin Trends Diverge
Concentrix Corporation (NASDAQ:CNXC) is one of the 20 undervalued momentum stocks that are taking off. Following its fiscal Q2 earnings, Concentrix continues to receive cautious commentary from Bank of America analyst Ruplu Bhattacharya, who reiterated a Hold rating, citing a mix of near-term pressures and longer-term uncertainties. On June 27, the analyst adjusted his price target on the stock to $61 from $65, reflecting a slightly reduced 2026 EPS estimate of $12.16 (down from $12.32), while keeping the valuation multiple unchanged. The recent revenue beat in Q2 was a positive surprise; however, the company fell short of its operating margin guidance. The analyst attributed this to costs led by Concentrix's decision to retain workforce for the paused client programs amid tariff-related uncertainty, as well as upfront investments aimed at supporting a stronger second half. These choices resulted in negative operating leverage during the quarter. A digital dashboard detailing customer experience/user experience data. Earlier in his June update, Bhattacharya had also highlighted the muted short-term impact of generative AI on Concentrix's revenue. While the company is actively investing in AI capabilities, deployment across its client base remains in early stages. As a result, any meaningful revenue uplift from AI is likely a longer-term story. Bhattacharya had also noted that while verticals like travel and financial services are showing resilience, others, including technology and healthcare, are seeing weaker demand. He acknowledged that Concentrix's valuation looked inexpensive and flagged potential for a short squeeze given elevated short interest. Still, overall, the macro backdrop and sector-specific headwinds justify a Hold rating. Concentrix Corporation (NASDAQ:CNXC) specializes in designing, building, and managing end-to-end Customer Experience (CX) and digital operations solutions. While we acknowledge the potential of CNXC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
17-02-2025
- Business
- Yahoo
Super Micro Computer's Roller-Coaster Ride Continues. What Should Investors Do With the Stock?
Super Micro Computer (NASDAQ: SMCI) shares have continued to be extremely volatile, with the stock surging ahead of its preliminary earnings report, only to dip nearly 10% the session before its report. The stock then bounced around following the announcement of its result. The stock is up nearly 40% year to date, but down about 50% over the past year, as of this writing, as the stock continues to make big moves in both directions. Let's take a look at the company's most recent preliminary results and guidance to help determine what investors should do with the stock. 2024 was a topsy-turvy year for Supermicro, as the company faced the backlash of a short report accusing it of accounting manipulation, a delay of filing its financials, a Department of Justice (DOJ) investigation reported by the Wall Street Journal, and the resignation of its auditor. On its earnings call, the company said it is confident it will file its 2024 annual 10-K report and first- and second-quarter 10-Q reports by the Feb. 25 deadline. It added that its special committee found no evidence to support the reasons why its former auditor, Ernst & Young, resigned. However, it did confirm that both the DOJ and SEC were investigating it, subpoenaing the company for certain documents in late 2024. For its fiscal Q2, meanwhile, the company said revenue will come in between $5.6 billion to $5.7 billion, representing year-over-year growth of 54% at the midpoint. That is well below the $5.95 billion revenue consensus, as compiled by Bloomberg. Adjusted earnings per share, meanwhile, are expected to range from $0.58 to $0.60, reflecting only 5% year-over-year growth due to margin pressures. One area Supermicro was seeing pressure with before the short report and filing day was gross margins, which had fallen to 11.2% in fiscal Q4 from 17% a year ago and 15.5% in Q3 2024. Gross margins play a big role in how much revenue is converted into profits, so the higher the percentage, the better. Supermicro had a low-margin business to begin with, as top semiconductor companies like Nvidia and Broadcom have gross margins of around 75%. For fiscal Q2 2025, the company sees gross margins coming in between a range of 11.8% to 11.9%. Meanwhile, it projected fiscal Q3 gross margins of about 12%. The company was pressed on the call by Bank of America analyst Ruplu Bhattacharya, who asked if industry margins were under secular pressure due to more competition from other AI server manufacturers and whether direct liquid cooling has become commoditized with everyone now offering a version of it. The company said it hasn't changed its margin target, and that being first to market with the very best solutions is an advantage. Looking ahead, Supermicro forecast fiscal Q3 revenue to come in between $5 billion to $6 billion, which was below analyst expectations for revenue of $6.09 billion, as compiled by LSEG. It is looking for adjusted EPS of between $0.46 to $0.62. Meanwhile, the company reduced its fiscal 2025 revenue forecast to a range of $23.5 billion to $25 billion, down from prior guidance of $26 billion to $30 billion. The company said the lowered forecast was due to delays in new technology and the impact of its delayed 10-K. However, it thinks it can reach $40 billion in revenue in fiscal year 2026, representing 60% growth. The company called its 2026 forecast "very conservative." It sees the transition to Nvidia's Blackwell graphic processing unit (GPU) platforms and the expansion of liquid-cooled data center solutions as growth drivers in fiscal 2026. In addition, the company announced a $700 million private placement of new convertible senior notes due in 2028, which it said will support business growth. The new notes will pay interest of 2.25% and be convertible into common stock at an approximate 50% premium over the volume-weighted average price of its common stock on Feb. 12. It also amended its 0% coupon senior convertible notes, which will now pay 3.5% interest and be convertible at a 105% premium. To quote Joe Pesci from the movie JFK, Supermicro is "a mystery wrapped in a riddle inside an enigma." On the one hand, Supermicro is a real company that is benefiting from the AI infrastructure build-out, and that spending is only ramping up this year, so its guidance for $40 billion in revenue in fiscal 2026 is not farfetched. However, the company is clearly feeling some competitive pressure, as evidenced by its reduced fiscal 2025 guidance and very weak gross margins. In the meantime, there still remain questions about its accounting and why its auditor suddenly resigned with unusually harsh statements. The company is also being investigated by both the DOJ and SEC over its accounting, and it faces a deadline in a couple of weeks to file or see its stock delisted, which it is confident it will meet. There is also the question of why it needed to raise new convertible debt. The stock remains fairly inexpensive, trading at a forward price-to-earnings ratio (P/E) of under 15 times fiscal 2025 analyst estimates and at about 11 times fiscal 2026 estimates. That said, this is a very low-margin commoditized business that also typically doesn't see big valuation multiples. However, if the AI infrastructure spending supercycle is going to continue, the stock is still pretty cheap. Nonetheless, with the issues still surrounding the company (from weak margins to accounting investigations), I think there are a number of safer ways to play the AI infrastructure build-out, such as Nvidia or Broadcom. As such, I personally would just watch on the sidelines for now. But for aggressive investors, the company filing its financials by Feb. 25 could be a big catalyst for the stock. However, that's more gambling than actual investing, in my view. Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $850,946!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list. Learn more » *Stock Advisor returns as of February 7, 2025 Bank of America is an advertising partner of Motley Fool Money. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Super Micro Computer's Roller-Coaster Ride Continues. What Should Investors Do With the Stock? was originally published by The Motley Fool Sign in to access your portfolio
