Latest news with #server
Yahoo
2 days ago
- Business
- Yahoo
Needham Hikes SMCI Price Target to $60 Despite Earnings Miss: What Investors Should Know
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the . On August 6, Needham analyst N. Quinn Bolton raised the price target on the stock to $60.00 (from $39.00) while maintaining a Buy rating. The rating affirmation comes despite SMCI fourth-quarter fiscal 2025 results falling short of market expectations. The firm discussed the reason that led to the earnings miss. 'The miss was attributed to a lack of access to sufficient capital, which hindered the company's ability to accelerate to volume production. The limited access to capital was due to the prior delay of the company's 10-K filing, which has since been filed.' A financial analyst working on a projection screen and researching market trends. Besides capital constraints stemming from delayed 10-K filing, specification changes from a new key customer led to revenue recognition delays. 'Additionally, a new key customer had specification changes that further delayed the recognition of revenue. In the near term, NG gross margin is expected to be under pressure due to larger deals and tariff costs.' Regardless, the firm is still optimistic about the stock. 'However, we believe margins should improve in the upcoming quarters as the company ramps its DCBBS solutions and targets new growth markets.' Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide. While we acknowledge the potential of SMCI 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 . Disclosure: None. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
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
CNA
5 days ago
- Business
- CNA
Super Micro's quarterly revenue misses estimates
Super Micro missed Wall Street estimates for fourth-quarter revenue on Tuesday, hit by intense competition from larger server makers for high-performance computers used to train artificial-intelligence models. Shares of the San Jose, California-based firm fell 11 per cent in extended trading. The AI server market is becoming more competitive as many companies launch advanced servers and rack configurations.
Yahoo
6 days ago
- Business
- Yahoo
Phison and Supermicro Collaboration Delivers Unmatched Storage Density for AI and Hyperscale Workloads
SAN JOSE, August 05, 2025--(BUSINESS WIRE)--Phison Electronics (8299TT), a global leader in NAND flash controllers and storage solutions, is collaborating to showcase one of the most advanced server solutions in the market with Supermicro, a total IT solution provider for AI/ML, HPC, cloud, storage and 5G/edge, to address growing demand to support high-density workloads. Through this collaboration, customers using Supermicro's Petascale Storage Family will be able to leverage Phison's high-capacity 122.88 TB Pascari D205V SSD, featuring a unique E3.L form factor and Gen5 NVMe performance. The result is a purpose-built solution to redefine the possibilities of storage density, thermal efficiency, and scalability in enterprise infrastructure. As enterprises tackle infrastructure shifts to support data-intensive workloads such as AI and machine learning training, real-time analytics and cloud-scale storage, striking a balance between high-performance and scalable capacity is more critical than ever. Through this collaboration, Phison will deliver storage solutions to support Supermicro's Petascale Storage with unmatched capacity per slot, enabling users to reduce total rack space, lower operational costs and simplify infrastructure planning at scale, whether at the edge or in the data center. The E3.L form factor is part of the broader EDSFF family offered in the Pascari D-Series and is specifically engineered for high-density, high-performance environments and designed to be hot-pluggable and front-accessible. Compared to legacy U.2 and U.3 designs, E3.L offers a longer form factor which unlocks double the capacity compared to E3.S as well as improved airflow and thermal management, making it ideal for AI training clusters, hyperscale environments, and dense edge deployments where cooling and space are critical constraints. "This innovative collaboration with Supermicro sets a precedent to keep pace with the increasing storage demands of tomorrow," said Michael Wu, GM and President at Phison US. "Customers can expect their storage solutions to have built-in scalability and cost optimizing features from the drive to the rack architecture." The Pascari D205V and Supermicro solutions will be in Supermicro's display at FMS booth #846. To learn more visit the Pascari web page and Phison blog. About Phison Electronics Corporation Phison Electronics is a global leader in NAND flash controllers and storage solutions, powering more than one in every five SSDs shipped worldwide. Phison has grown into a multi-billion-dollar company with over 4,500 employees—70% of which are dedicated to R&D – and more than 2,000 patents. The company's innovations include aiDAPTIV+, an award-winning AI solution for affordable LLM training and inferencing on-premises, and Pascari, a portfolio of ultra-high-performance enterprise SSDs purpose-built for data-intensive workloads across AI, cloud, and hyperscale data centers. View source version on Contacts PHISON SpokespersonAntonio YuTEL:+886-37-586-896 #10019Mobile: +886-979-105-026Email: antonioyu@ PHISON Deputy SpokespersonKuo-Ting LuTEL: +886-37-586-896 #26022Mobile: +886-979-075-330Email: kuoting_lu@ PHISON and PASCARI enterprise product inquiries:sales@ Sales@ PHISON and PASCARI enterprise media inquiries:Lynn KellyLynn_kelly@ press_americas@
Yahoo
6 days ago
- Business
- Yahoo
Can Super Micro's AI Demand Outpace Profit Margin Fears?
Super Micro Computer (NASDAQ:SMCI) is navigating a complex market landscape as it prepares to report its fiscal fourth-quarter earnings with a significant long-term growth narrative in the AI server space tempered by immediate concerns about market visibility and sustained pressure on profit margins. The company's heavy reliance on key suppliers and a competitive environment, where large-scale deals and component costs weigh on profitability, creates a cautious outlook despite its strong position as a leading beneficiary of rising AI infrastructure spending. Analyst Matt Bryson of Wedbush, in a note released on Monday, reiterated a Neutral rating on Super Micro with a $30 price forecast ahead of the company's earnings report scheduled for August the analyst acknowledged Super Micro's positioning as a key beneficiary of accelerating AI infrastructure spend, particularly in the server market, he expressed caution over near-term visibility and uncertainty around actual demand strength. Bryson noted that Super Micro stands to benefit from secular trends that align with its core strengths. Spending from neocloud providers, AI model builders, and sovereign buyers continues to grow, and these customers are increasingly turning to OEMs like Super Micro and Dell Technologies (NYSE:DELL) to meet their AI server requirements. He added that Nvidia's (NASDAQ:NVDA) apparent prioritization of GB200 deliveries to OEMs, rather than directly to hyperscalers, could serve as a tailwind for Super Micro. Peer company Gigabyte, for example, recently reported a 50% quarter-over-quarter sales surge, a result Bryson attributed to increased AI server shipments. If current market dynamics hold, Bryson sees a long-term path for Super Micro to potentially reach $10 billion in quarterly sales, echoing targets previously laid out by Super Micro CEO Charles Liang. This would be a significant leap from the $5.9 billion revenue consensus for fiscal fourth quarter and the $6.4 billion projection for calendar first quarter. However, Bryson underscored that visibility into Super Micro's actual build and demand trends remains limited. The company's heavy reliance on related parties for component sourcing and manufacturing complicates tracking real-time activity. Additionally, data from third-party sources has yet to reflect the level of demand surge expected from recent AI server trends. While strength in Taiwan-based suppliers like Wistron suggests a robust upstream environment, Bryson's team has not been able to confirm that Super Micro is directly seeing similar momentum in its own sales funnel. Margins also remain a key concern. Gross margins are expected to stay under pressure in the near term due to an increasing share of Nvidia (NASDAQ:NVDA) content in Super Micro's bill of materials. According to conversations with ODMs and OEMs, GB200-based designs leave little room for differentiation, further compressing vendor margins. Management has guided fiscal fourth-quarter gross margins to remain around 10%, roughly in line with the 9.7% margin reported in the previous quarter. The analyst characterized this conservatism as prudent, citing the lower-margin profile of large-scale deals, rising Nvidia component costs, and a lack of meaningful relief in memory pricing. For the fiscal fourth quarter, Super Micro management projected revenue in the range of $5.6 billion to $6.4 billion and adjusted earnings per share between 40 cents and 50 cents. Operating expenses are expected to reach $245 million, with an adjusted tax rate of 16.5%. The fully diluted share count is projected at 642 million, and capital expenditures are guided between $45 million and $55 million. Despite Super Micro's significant share price appreciation over the past few months, Bryson remains on the sidelines. Price Action: SMCI shares were trading higher by 3.88% to $58.84 at last check Monday. Image via Shutterstock Latest Ratings for SMCI 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 Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report This article Can Super Micro's AI Demand Outpace Profit Margin Fears? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
