Latest news with #SuperMicroComputer
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4 hours ago
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S&P 500 Gains and Losses Today: Arista Networks Stock Surges, Supermicro Plunges After Earnings Reports
Key Takeaways The S&P 500 added 0.7% on Wednesday, Aug. 6, 2025, amid news that Apple is set to announce an investment in U.S.-based manufacturing and as more earnings reports rolled in. Arista Networks shares skyrocketed as strong AI and cloud demand helped the computer networking equipment maker top quarterly forecasts. Super Micro Computer shares tumbled after the AI server maker missed quarterly estimates, citing tariff impacts and changes required by a major U.S. equities indexes pushed higher in the midweek trading session, bolstered by strength in the tech sector following reports that Apple (AAPL) was preparing to announce major investments in domestic manufacturing. The S&P 500 advanced 0.7% on Wednesday. The Dow was up 0.2%, while the tech-heavy Nasdaq Composite powered 1.2% higher. Arista Networks (ANET) shares secured Wednesday's top performance in the S&P 500 with a surge of 17.5%, reaching a record high. The maker of computer networking equipment reported better-than-expected year-over-year revenue growth of 30% for the second quarter, while net profit per share was up 35% from a year ago, reflecting an expansion in gross margins and also topping analysts' forecasts. Strong demand related to artificial intelligence and cloud computing helped drive Arista's solid performance. The company also raised its full-year revenue guidance, and an array of Wall Street analysts raised their price targets on Arista stock following the earnings report. Shares of Assurant (AIZ) jumped 11.2% after the insurance firm surpassed forecasts with its second-quarter revenue and net operating income results. The specialist in protecting consumers' major purchases—from homes and automobiles to connected devices—benefitted from strength across its global lifestyle and global housing segments. Gains in net earned premiums, fees and other income, and net investment income contributed to the Assurance's performance. Match Group (MTCH) shares climbed 10.5% in the wake of the online dating platform operator's quarterly earnings release. While earnings per share matched expectations, revenue came in ahead of forecasts. Match Group's new CEO Spencer Rascoff highlighted the positive momentum of the company's Hinge app, which generated a 25% jump in revenue from the year-ago period and a 20% increase in monthly active users in the first half of 2025. Since its launch in March, Hinge's AI-powered algorithm has helped boost matches and contact exchanges on the platform. Shares of Super Micro Computer (SMCI) suffered the steepest decline of any S&P 500 constituent on Wednesday, plunging 18.3%. The server maker's revenue and adjusted earnings per share for its fiscal fourth quarter came in below consensus estimates. Supermicro cited tariff-related costs, specification changes from a major customer, and constraints on capital that hindered its capacity to scale up production as factors behind the lackluster quarterly results. NRG Energy (NRG) shares dropped 13.6% following the power generator's quarterly earnings disclosure. Although the company's revenue and adjusted profits came in ahead of expectations, NRG reported a GAAP net loss, reflecting non-recurring charges for legal issues and unrealized non-cash losses related to economic hedges. Although NRG said it will supply power to data centers at two company-owned sites in Texas, analysts suggested the plans were small compared with major data center agreements announced by competitors like Constellation Energy (CEG). Mosaic (MOS), a producer of crop nutrients for agricultural markets, reported lower-than-expected revenue and adjusted profit for the second quarter. A year-over-year decline in phosphate volumes pressured Mosaic's performance during the period, and the company noted that tariffs were having an impact on its business. Mosaic shares tumbled 13.3% on Wednesday. Read the original article on Investopedia 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
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15 hours ago
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Analysts tweak Super Micro stock price target after earnings
Analysts tweak Super Micro stock price target after earnings originally appeared on TheStreet. Fans of pirate stories are no doubt familiar with the expression "Davy Jones' Locker." The phrase comes from folk stories about a demonic figure who presides over souls who were lost at sea, but it's typically used to describe the deepest part of the ocean. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Super Micro Computer () shares might not be that low, but they were seriously under water after the AI-server maker missed Wall Street's fourth-quarter-earnings expectations and fell short of first-quarter forecasts. The San Jose, Calif., company has been sailing in some pretty rough seas for a while now. Last August, short-seller Hindenburg Research released a report accusing Super Micro of what it called "glaring accounting red flags, evidence of undisclosed related-party transactions, sanctions violations, and customer troubles." A day later, Super Micro said it would delay filing its Securities and Exchange Commission Form 10-K for the fiscal year ended June 30. Super Micro CEO cites revenue growth In October, Super Micro's then-auditor, Ernst & Young, resigned, citing governance and transparency concerns. Super Micro's special committee of the board later said it found 'no evidence of misconduct' after an investigation. In December, Super Micro was dropped from the Nasdaq 100 Index and in February, the company reported its financial results just in time to meet the Nasdaq's listing deadline. More Tech Stocks: Analyst who correctly predicted Rocket Lab stock surge resets forecast Verizon Q2 earnings report surprises with remarks on tax reform Fund manager who forecast Nvidia stock rally reboots outlook Super Micro CEO Charles Liang told analysts on Aug. 5 that the company's revenue surged 47% from a year earlier. "This growth reflects continued strong demand for our AI and green computing solutions," he said, "despite the six months cash-flow impact from the delayed filing of our fiscal year 2024 10-K and delayed revenue recognition from a major new large partner." Liang said earnings per share fell 50% from a year earlier, due primarily to the impact of the Trump administration's tariffs. "Although, we had taken measures to reduce the impact, and we will see their results," he said. During the call, Liang discussed the company's strategy for competing in the AI server market. "We can grow much quicker if we don't care about the gross margin and net margin," he said. "And that's why we introduced the DC PPS, data center billing box solution. That's a total solution to support the customer to build a data center quicker, better, and also save money, more reliable." "And we provide all the infrastructure (needed), including on-site deployment, networking, cabling," Liang added. "We are able to provide a better value to the customer, not just the price war." Analyst: Super Micro falling short of targets Super Micro's shares are up nearly 50% this year, but stock was off 20.5% at last check. Investment firms expressed disappointment with the company's earnings of America Securities analyst Ruplu Bhattacharya raised his price target on Super Micro to $37 from $35 and affirmed an underperform rating on the shares. Gross margins were hurt again this quarter from inventory reserves for older generation products, as some customers chose to wait for the next generation Nvidia () B300/GB300 GPUs, the analyst wrote. '[This] can be an issue in future quarters as well, as Nvidia and AMD will continue to launch new GPUs with step function changes in functionality," Bhattacharya said in a research note. "In our opinion, some customers who spend a lot on data center racks may elect to wait to get the best functionality for their money, if their schedule can allow for it. SMCI will thus need to manage working capital efficiently and ensure that it does not overbuild older generation racks." In addition, the analyst said, in the fiscal fourth quarter a major new customer had specification changes that delayed revenue recognition. Management also highlighted a constraint on capital that limited Super Micro's ability to scale production in that quarter The analyst's fiscal 2026 revenue forecasts moved higher to $33.1 billion, in line with the company's outlook, but Bhattacharya also sees competitor Dell Technologies () gaining market share in AI servers. JP Morgan analyst Samik Chatterjee lowered the investment firm's price target on Super Micro to $45 from $46 and maintained a neutral rating on the shares, according to The Fly. .The company's fiscal Q4 results missed expectations due to capital constraints and customer indecision, Chatterjee said. The firm said the quarter was another example of Super Micro's execution falling short of management's tweak Super Micro stock price target after earnings first appeared on TheStreet on Aug 6, 2025 This story was originally reported by TheStreet on Aug 6, 2025, where it first appeared. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
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19 hours ago
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Top Stock Movers Now: McDonald's, Shopify, Super Micro Computer, and More
Key Takeaways U.S. equities were higher at midday as the market reacted to the latest corporate earnings news. Promotions helped McDonald's increase U.S. sales, and shares of the fast-food chain gained. Super Micro Computer's results and guidance were hurt by tariffs and requirements made by a major customer.U.S. equites gained at midday, lifted by several strong corporate earnings reports. The Dow Jones Industrial Average, S&P 500, and Nasdaq all advanced. McDonald's (MCD) shares rose when the fast-food giant posted better-than-expected results as promotions helped boost sales in the U.S. Shopify (SHOP) also topped forecasts, and the provider of software for e-commerce firms boosted its guidance on a jump in gross merchandise value (GMV) and a lack of a tariff impact. Shares traded around their record high. Another company that reported better-than-anticipated profit and sales and increased guidance was Arista Networks (ANET). The cloud computing networking gear manufacturer's shares soared as it benefited from high demand for artificial intelligence products. Super Micro Computer, or Supermicro (SMCI), was the worst-performing stock in the S&P 500 when the computer server maker posted worse-than-expected results and outlook because of tariff effects and changes that were required by a major customer. Shares of Snap (SNAP) slumped after the parent of the Snapchat social media site had a higher net loss and adjusted earnings missed forecasts because of a platform glitch and a change in tax rules for sales of lower-priced imported items. Advanced Micro Devices (AMD) shares fell after the chipmaker's profit disappointed as it faced restrictions on its chip shipments to China. Oil futures were up. Gold futures and the yield on the 10-year Treasury note were little changed. The U.S. dollar lost ground to the euro, pound, and yen. Prices for most major cryptocurrencies were higher. Read the original article on Investopedia 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
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20 hours ago
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Why Supermicro Stock Is Plunging Today
Key Takeaways Super Micro Computer posted quarterly results below forecasts as it faced higher costs from tariffs and a major customer required changes. The server maker also gave a weaker-than-expected outlook. Super Micro Computer said it saw expenses take off because of a jump in salaries and Micro Computer (SMCI), shares plunged Wednesday after the server maker reported weaker-than-expected results, as it faced higher costs from tariffs and changes required by a major customer. The shares were down nearly 20% in recent trading. Still, they've added about half of their value in 2025. Supermicro posted fiscal fourth-quarter adjusted earnings per share (EPS) of $0.41, down $0.13 from 2024 and below analysts' estimates compiled by Visible Alpha. The company blamed the decline on tariffs and higher operating costs. Revenue rose 7.5% year-over-year to $5.76 billion, though that was also short of forecasts. CEO Charles Liang said revenue was lower in June because of 'capital constraints that limited our ability to rapidly scale production, and specification changes from a major new customer that delayed revenue recognition because of new added features.' He said those issues have been resolved. CFO David Weigand also noted that operating expenses jumped 22.6% to $315.7 million on higher compensation payments and headcount. The company said it sees first-quarter adjusted EPS in the range of $0.40 to $0.52, while analysts had called for $0.60. Read the original article on Investopedia 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
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20 hours ago
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Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now?
Super Micro Computer (SMCI), known commonly as Supermicro, faced a sharp selloff after its fiscal fourth-quarter earnings report disappointed investors. SMCI stock dropped more than 17% in morning trading following the release, as the company's earnings and guidance fell short of expectations, raising fresh concerns about slowing growth and tighter competition. Here's What Led to the Selloff in Supermicro Stock Supermicro, known for its high-performance server and storage systems, has been a key beneficiary of the artificial intelligence boom. Its products are tailored for artificial intelligence (AI)-specific workloads, helping fuel tremendous growth in fiscal 2024. However, that momentum appears to be cooling, at least in the short term. In its latest quarter, SMCI reported revenue of $5.8 billion, representing a 7.4% increase year-over-year. While that's still growth, it marks a noticeable deceleration compared to previous quarters. For instance, its revenue was up 19.5% in Q3, 54.9% in Q2, and a staggering 180.1% in Q1. More News from Barchart Palantir's Free Cash Flow Margins and Forecasts Rise - Where This Leaves PLTR Stock Cathie Wood is Buying Figma Stock with Both Hands. Should You Buy This Hot IPO, Too? Can SoundHound's Q2 Results Send the Stock Soaring on August 7? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The disappointment didn't stop with the Q4 results. Management's guidance for the first quarter of fiscal 2026 also underwhelmed. Supermicro forecast revenue between $6 billion and $7 billion and adjusted earnings per share between $0.40 and $0.52, both lower than analysts' expectations. Wall Street was expecting $6.6 billion in revenue and $0.59 EPS. Much of this slowdown appears tied to a broader pause in AI-related hardware purchases. As the AI ecosystem undergoes another transition, most notably Nvidia's (NVDA) shift from its Hopper to Blackwell GPU architecture, customers appear to be pausing some purchases, waiting to see how the landscape evolves. This temporary slowdown has created a speed bump in Supermicro's growth trajectory. At the same time, the company faces intensifying competitive pressure from industry giants Dell (DELL) and Hewlett Packard Enterprise (HPE). While Supermicro is shifting toward higher-margin revenue streams to help sustain profitability, these competitive headwinds could continue to put pressure on margins in the near term. Management remains optimistic about a stronger second half of fiscal 2026, expecting growth to reaccelerate as new AI platforms are deployed and demand rebounds. But in the near term, the combination of slowing growth, weak guidance, and macro uncertainty could continue to weigh on Supermicro stock. Is SMCI Stock a Buy Now? Supermicro is poised to gain from the growing demand for AI infrastructure. Its leadership in AI platforms and a broad range of solutions optimized for the latest GPU technologies, including NVIDIA B200 systems and Advanced Micro Device's (AMD) Instinct MI350 Series GPUs, provides a significant runway for growth. Notably, the demand for its AI-optimized platforms has been strong, and over 70% of Supermicro's total revenue now comes from its AI GPU offerings. Supermicro has been aggressive in expanding both its product range and manufacturing capacity. Its DCBBS, which helps in building data centers more quickly, is likely to see significant demand. The company is also ramping up offerings in air-cooled and direct liquid cooling (DLC) AI systems, positioning itself as a go-to provider for cutting-edge, green computing solutions. Looking ahead, management expects revenue of $33 billion for fiscal 2026, up 50% year-over-year. The acceleration in growth will likely be driven by its expanding enterprise customer base, upcoming product innovation, and momentum in DCBBS's total solution. However, it's not all smooth sailing. While SMCI's revenue growth is expected to accelerate, it faces intensifying competition from legacy players and specialized AI server providers, which could pressure its margins. Moreover, SMCI's valuation has become a point of concern. Supermicro trades at a forward P/E ratio of 28.4x, considerably higher than peers like Dell Technologies (15.2x) and Hewlett Packard Enterprise (12.8x). That premium pricing raises the bar for future performance and leaves little room for missteps. In contrast, Dell, with its double-digit earnings growth forecast and relatively attractive valuation, offers a more compelling case for value-conscious investors. Analyst sentiment reflects this view. While SMCI has a 'Hold' consensus rating, Dell stock enjoys a 'Strong Buy' endorsement. Given Supermicro's premium valuation and recent stock volatility, investors may find better risk-reward in alternatives like Dell for now. That said, for those willing to bet on AI infrastructure's long-term trajectory and are comfortable with higher valuation multiples and volatility, SMCI remains a company to watch closely. On the date of publication, Amit Singh 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
