01-08-2025
Super Micro Q4 Earnings Loom--Should You Buy, Hold, or Sell?
Aug 1 - Super Micro Computer (NASDAQ:SMCI) prepares to report fiscal fourth-quarter 2025 results on August 5, with analysts watching for a potential earnings surprise as the company leans on surging AI infrastructure demand. Wall Street expects revenue near $6 billion, slightly below the midpoint of management's prior outlook, and EPS estimates also reflect modest expectations.
The San Jose-based server and data center solutions provider navigated a soft fiscal Q3 as revenue came in at $4.6 billion, up 19% year-over-year but just shy of forecasts. Management attributed the shortfall to customers delaying purchases amid the transition from Nvidia's (NVDA) Hopper to Blackwell GPUs, with deferred orders expected to contribute to a stronger Q4 and early fiscal 2026.
Warning! GuruFocus has detected 7 Warning Signs with SMCI.
Super Micro continues to expand globally, launching over 30 new Blackwell-based AI server solutions and forming a multi?year, $20 billion partnership with Saudi DataVolt to deploy ultra?dense GPU platforms in the U.S., U.K., and Saudi Arabia. With 9% share of the AI platform market and 31% in branded AI servers, the company positions itself for growth as liquid?cooled and high?density solutions drive demand.
Investors now look for confirmation that Q3 was a reset, not a slowdown.
Based on the one year price targets offered by 16 analysts, the average target price for Super Micro Computer Inc is $41.06 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a downside of -27.40% from the current price of $56.55.
Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $71.09, suggesting a upside of +25.71% from the current price of $56.55. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.
This article first appeared on GuruFocus.
