Latest news with #SuperMicroComputerInc
Mint
06-08-2025
- Business
- Mint
Super Micro Falls Most in Nine Months After Cutting Forecast
(Bloomberg) -- Super Micro Computer Inc. shares plunged the most in nine months after the company lowered its fiscal-year revenue forecast, raising questions about sales and pricing pressures around powerful AI servers. Revenue in the year ending in June 2026 will be at least $33 billion, Super Micro said Tuesday in a statement. In February, the company offered a bullish long-term outlook because of demand for AI products with Nvidia Corp.'s chips, saying sales would be $40 billion — then almost twice as much as analysts' estimates for the current fiscal year. The profit forecast for the period ending in September also implies a 5% operating margin, while Wall Street, on average, was expecting 7%, said Woo Jin Ho, an analyst at Bloomberg Intelligence. Super Micro's shares have surged 88% this year on optimism it would benefit from soaring interest in AI gear. Instead, the company's revised fiscal-year outlook raises questions about its ability to capitalize on the demand for artificial intelligence equipment with the latest Nvidia Blackwell chips. The company has also been struggling with margins as it deals with older inventory amid pressure to price its products lower in order to win AI server deals over rivals. 'Super Micro's 1Q and 2026 outlook lowers the expectations bar,' Ho said. 'However, its outlook implies a highly competitive pricing environment in these mega-server deals, in particular from Dell.' The shares declined 20% to $45.56 at 11:27 a.m. in New York, the biggest intraday drop since Nov. 6, 2024. 'Delays in Blackwell availability is partially to blame, and we suspect the timing of deals could be clouded in 2H,' Ho said in a note. 'But the company's history of poor execution makes it difficult to give it the same benefit of the doubt awarded to tech bellwethers.' Dell Technologies Inc. has also been pushed to accept narrower margins in order to secure large deals like its AI server contract with xAI, Bloomberg reported earlier this year, citing people familiar with the deals. Super Micro reported that fiscal fourth-quarter revenue increased 7.5% to $5.76 billion. Profit, excluding some items, was 41 cents a share, the San Jose, California-based company said in a statement. Analysts, on average, estimated profit of 44 cents on sales of $6.01 billion. Chief Executive Officer Charles Liang said some customers continue to wait for new products with the latest Nvidia chips, hurting demand for current offerings. 'We have to wait and see,' he told analysts on a conference call after the results, noting that the company expects greater availability of those powerful AI semiconductors in the future compared with the past two quarters. In the period ending in September, Super Micro projected revenue will be $6 billion to $7 billion. Earnings, excluding some items, will be 40 cents to 52 cents a share. Analysts, on average, projected profit of 59 cents on sales of $6.59 billion. (Updates with share price in the sixth paragraph) More stories like this are available on
Entrepreneur
03-06-2025
- Business
- Entrepreneur
Why Super Micro Computer's Upside Could Trigger a Short Squeeze
This story originally appeared on MarketBeat There's an often forgotten strategy that has made millionaires in the past, when it comes to the stock market, signs of interest (or lack thereof) for any stock can guide regular investors into some of the best opportunities that most others leave behind due to the simple fact that they are less understood than the typical methods employed by retail investors. This strategy involves a contrarian, high-risk, and high-reward point of view. [content-module:CompanyOverview|NASDAQ:SMCI] More specifically, this strategy is called riding up a short squeeze, which was at the heart of the so-called 'Meme stock mania' that turned markets red hot during the cheap money and low interest rates era after the COVID-19 pandemic. The reason these stocks reached stratospheric valuations is simple: the short sellers were cornered into a forced position to close out and cut their losses. Now, closing a short position, whether for loss-cutting or profit-taking, involves buying back the borrowed stock that was sold. This means additional buying pressure, and that leads investors to an opportunity to see outsized returns when they can catch a stock with high short interest and a reasonable theme that could put pressure on these sellers. This is exactly where shares of Super Micro Computer Inc. (NASDAQ: SMCI) come into play. Why Super Micro Computer Stock? Since buyers' focus is on running the stock to a choke point and triggering what's known as a 'short squeeze,' whereby short sellers are forced to close out their positions and buy the stock in the process, investors should first check what the short interest looks like for Super Micro Computer stock today. As of May 2025, up to 20.9% of the available shares in the market for this company were held in short positions, a significant level by any measure taken in the technology sector. This is important because if the stock can maintain the upside momentum, as seen in the recent 20.9% monthly performance, then it's only a matter of time before a short squeeze is triggered. That would mean up to $4.4 billion worth of short positions could be closed out on the buy side, a significant tailwind to help the stock return to its previous highs, which were achieved before the negative media began to put a ceiling on the company's future prospects. Knowing that this setup could have a similar outcome to that of the meme stock mania, some institutional buyers have decided to take action, also noticing that Super Micro Computer stock trades at only 40% of its 52-week high, thereby creating a fantastic risk-to-reward ratio today. What Short Sellers Fear Most It's not only the $4.3 billion that institutional investors have bought in Super Micro Computer stock over the past quarter, but also the deep fundamental developments currently working in favor of the company's future financials and valuations. [content-module:Forecast|NASDAQ:SMCI] One such development is that the Saudi government has decided to partner with Super Micro Computer due to its services and equipment, which will be used to build the nation's artificial intelligence infrastructure. More than that, the power of Super Micro Computer's liquid-cooling system for data centers attracted another formidable partnership. NVIDIA Co. (NASDAQ: NVDA) posted a stellar quarter recently, showing continued demand for the chipmaker's Blackwell product line, which is directly tied to these liquid-cooling services that Super Micro Computer offers. Before any Wall Street analysts come into play and forecast the financial impacts of these developments, here's what investors need to know. As earnings per share (EPS) forecasts stand today, Wall Street analysts see Super Micro Computer delivering up to $0.94 in EPS by the fourth quarter of 2025, a threefold jump from today's reported $0.31 in EPS. This matters because where EPS growth goes, so does the stock price, essentially. Faced with this wall of upside ahead of them, short sellers who decide to stay for a fight will likely be forced to the point of maximum pain, where liquidating their positions will follow (resulting in buying the stock). With this in mind, those looking to gain exposure to Super Micro Computer are sure to get a terrific bargain at today's prices. This might also be the reason why Nehal Chokshi, an analyst at Northland Securities, placed a valuation of up to $59 per share on the stock in early May 2025. Now, despite all the trade tariffs and S&P 500 uncertainty that have occurred since then, this analyst has not changed his view on Super Micro Computer, which is also a sign of confidence. Given the stock's decline from its current level, this valuation target would imply a potential upside of up to 44.6%. This gap is the last stand for short sellers to justify holding onto $4.4 billion worth of short positions today. If the stock validates this valuation target, that balance will likely serve as another catalyst to drive the stock even higher. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Yahoo
30-05-2025
- Business
- Yahoo
Super Micro's Stock Slumps Even as NVIDIA Tie-Up Heats Up
May 30 - Super Micro Computer Inc. (NASDAQ:SMCI) shares slid nearly 3% to $39.7 on Friday afternoon, falling 57% back from a 52-week high of $101.40 amid broader tech sector pressure. Warning! GuruFocus has detected 5 Warning Signs with SMCI. Despite trade-tariff uncertainties, SMCI finds support in its link to NVIDIA (NASDAQ:NVDA) and the rising demand for Blackwell chips. As NVDA's new AI solutions gain traction, data centers require advanced servers and cooling, areas where SMCI specializes. SMCI recently shook off past accounting concerns by installing a new auditing team, helping to restore investor confidence. That groundwork set the stage for a major win: the Saudi government tapped SMCI to build AI-focused data centers, signaling faith in its Foundry servers. NVDA's strong quarterly results have left a gap in data-center maintenance, precisely the niche SMCI can fill. With NVDA's Blackwell chips fueling orders, SMCI may see further upside as AI infrastructure spending climbs. For bulls, SMCI's role in supporting NVDA's Blackwell ecosystem offers a clear catalyst, even as tariffs and macro headwinds persist. Based on the one year price targets offered by 15 analysts, the average target price for Super Micro Computer Inc is $40.00 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a upside of +0.68% from the current price of $39.73. Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $67.82, suggesting a upside of +70.72% from the current price of $39.73. 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
30-05-2025
- Business
- Yahoo
Super Micro's Stock Slumps Even as NVIDIA Tie-Up Heats Up
May 30 - Super Micro Computer Inc. (NASDAQ:SMCI) shares slid nearly 3% to $39.7 on Friday afternoon, falling 57% back from a 52-week high of $101.40 amid broader tech sector pressure. Warning! GuruFocus has detected 5 Warning Signs with SMCI. Despite trade-tariff uncertainties, SMCI finds support in its link to NVIDIA (NASDAQ:NVDA) and the rising demand for Blackwell chips. As NVDA's new AI solutions gain traction, data centers require advanced servers and cooling, areas where SMCI specializes. SMCI recently shook off past accounting concerns by installing a new auditing team, helping to restore investor confidence. That groundwork set the stage for a major win: the Saudi government tapped SMCI to build AI-focused data centers, signaling faith in its Foundry servers. NVDA's strong quarterly results have left a gap in data-center maintenance, precisely the niche SMCI can fill. With NVDA's Blackwell chips fueling orders, SMCI may see further upside as AI infrastructure spending climbs. For bulls, SMCI's role in supporting NVDA's Blackwell ecosystem offers a clear catalyst, even as tariffs and macro headwinds persist. Based on the one year price targets offered by 15 analysts, the average target price for Super Micro Computer Inc is $40.00 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a upside of +0.68% from the current price of $39.73. Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $67.82, suggesting a upside of +70.72% from the current price of $39.73. 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
27-05-2025
- Business
- Yahoo
Super Micro Computer (SMCI) Shares Climb 5% After Five-Day Slump
May 27 - Super Micro Computer (NASDAQ:SMCI) shares surged about 5% on Tuesday, ending a five-day slide. However, many traders remain cautious that the volatile stock may retreat. Warning! GuruFocus has detected 5 Warning Signs with SMCI. The shares have climbed about 31% month-to-date, eyeing the largest monthly advance since a 45% gain in February. The rally highlights SMCI's erratic performance after broad declines in March. Volatility accelerated in early 2024 when multibillion-dollar AI spending by Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and other hyperscale data-centre operators stoked optimism. That enthusiasm waned after auditor Ernst & Young resigned in October 2024, raising questions about the firm's controls. Super Micro won a Nasdaq exemption in December, granting it until February to file delayed financials. Investors also face margin pressure, intense competition and weak guidance for the fiscal fourth quarter ending June 30. In April, SMCI was the most-shorted S&P 500 stock, with 21.3% of its tradable shares sold short. Based on the one year price targets offered by 14 analysts, the average target price for Super Micro Computer Inc is $40.85 with a high estimate of $73.00 and a low estimate of $15.00. The average target implies a downside of -3.89% from the current price of $42.51. Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $68.74, suggesting a upside of +61.72% from the current price of $42.51. 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
