Latest news with #Supermicro
Yahoo
a day ago
- Business
- Yahoo
1 Troubling Number Super Micro Computer Investors Can't Afford to Ignore
Key Points Super Micro's narrowing gross profit margin has been negating the company's sales growth. Low margins can be a sign of underlying problems. The stock has fallen since its latest earnings report and appears modestly valued, based on its expected future earnings. 10 stocks we like better than Super Micro Computer › Shares of Super Micro Computer (NASDAQ: SMCI) plunged last week after the company reported its latest earnings numbers. The business, also known as Supermicro, has benefited from strong growth in tech by providing servers, storage systems, and other necessary infrastructure for companies that are investing in artificial intelligence (AI) and upgrading their computing capabilities. In recent years, Supermicro has seen its sales explode due to the soaring demand it has experienced for its servers and AI infrastructure. And in just five years, this once-small stock with a market cap of about $1 billion in 2020, has grown to be worth nearly $30 billion today. At its peak, its valuation was nearly $70 billion. The company has been struggling of late, but the big problem isn't a new one. And its lack of earnings growth stems from one number that investors simply can't afford to ignore: its gross profit. Gross profit declined last quarter On Aug. 5, Supermicro reported its fiscal fourth-quarter numbers for the period ended June 30, and sales rose by 8% to $5.8 billion. The company's slowing growth is a problem, but a bigger one is that its gross profit declined, from $546 million to $544 million. Gross profit is what a company has left from revenue after accounting for cost of sales. Although it wasn't a huge drop in gross profit this past quarter, this is not the type of trend you expect from a growth stock. A decline in gross profit is concerning because it can mean a company is relying heavily on discounted prices to move products, perhaps due to intense competition or limited demand. Either way, it's not a great situation to be in. And in Supermicro's case, its narrowing gross margin negated the revenue growth the company achieved in the latest quarter. If that trend continues, that means even if its sales take off, that may not necessarily lead to a big increase in the bottom line. Supermicro is forecasting more growth in the year ahead For the full fiscal year, net sales totaled $22 billion, up 47% year over year. For the current fiscal year, it is projecting net sales of $33 billion, implying a faster growth rate, at 50%. That appears to be optimistic, given the uncertainty in the markets these days due to tariffs and rapidly changing macroeconomic conditions. But even if that growth materializes, it may not necessarily result in positive earnings growth. Consider that while sales rose at a high rate in the past fiscal year, net income fell by 9%. It all comes back to those thin gross profit margins. If the company's margins were wider than the 11% it has been averaging, there would have been more in gross profit to help cover its rising operating expenses. And that's why until its margins improve, the business may face an uphill battle in growing its earnings. Investors should tread carefully with Supermicro Supermicro does have a lot of long-term potential due to AI, but the tech stock is by no means a slam-dunk buy, even though it appears cheap, trading at a forward price-to-earnings multiple of only 16 (based on analyst estimates). Unless you have a high risk tolerance, I think you may be better off taking a wait-and-see approach with Supermicro. Should you invest $1,000 in Super Micro Computer right now? 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 Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Troubling Number Super Micro Computer Investors Can't Afford to Ignore was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
08-08-2025
- Business
- Globe and Mail
Supermicro Announces Participation in Upcoming Investor Events
Super Micro Computer, Inc. (Nasdaq: SMCI) ('Supermicro' or the 'Company'), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced its participation in the upcoming investor conferences: Event: Keybanc Tech Leadership Forum Date: August 11, 2025 Fireside Chat: 11:30am MT Location: Park City, UT Event: Citi Global TMT Conference Date: September 4, 2025 Fireside Chat: 9:30am ET Location: New York, NY Event: Goldman Sachs Communacopia + Technology Conference Date: September 8-9, 2025 1x1 meetings only Location: San Francisco, CA About Super Micro Computer, Inc. Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling). Supermicro, Server Building Block Solution, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
Business Wire
08-08-2025
- Business
- Business Wire
Supermicro Announces Participation in Upcoming Investor Events
SAN JOSE, Calif.--(BUSINESS WIRE)-- Super Micro Computer, Inc. (Nasdaq: SMCI) ('Supermicro' or the 'Company'), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced its participation in the upcoming investor conferences: Event: Keybanc Tech Leadership Forum Date: August 11, 2025 Fireside Chat: 11:30am MT Location: Park City, UT Event: Citi Global TMT Conference Date: September 4, 2025 Fireside Chat: 9:30am ET Location: New York, NY Event: Goldman Sachs Communacopia + Technology Conference Date: September 8-9, 2025 1x1 meetings only Location: San Francisco, CA About Super Micro Computer, Inc. Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling). Supermicro, Server Building Block Solution, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
Yahoo
08-08-2025
- Business
- Yahoo
As Super Micro Computer Stock Absolutely Plunges, Should You Buy the SMCI Dip?
Supermicro (SMCI) shares tanked more than 20% on Wednesday morning after the AI server firm reported disappointing earnings for its fiscal fourth quarter (Q4). The company's financial release blamed tariffs for the quarterly weakness, although chief executive Charles Liang confirmed on the conference call that SMCI has 'taken measures to reduce impact' of tariffs. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Can SoundHound's Q2 Results Send the Stock Soaring on August 7? Palantir's Free Cash Flow Margins and Forecasts Rise - Where This Leaves PLTR Stock Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Including the post-earnings plunge, Super Micro stock is down nearly 25% versus its recent high. SMCI Stock Crashes on Downbeat Guidance Despite the management's seemingly positive remarks on the tariff front, its outlook for the current quarter isn't particularly inspiring either. Supermicro sees its per-share earnings (EPS) falling between $0.40 and $0.52 in its fiscal Q1 on $6.5 billion in revenue. Analysts, in comparison, were at $0.59 a share and $6.6 billion, respectively. According to the company's chief executive, 'specification changes from a major new customer' and a 'lack of working capital' resulted in a revenue shortfall in June, which renders SMCI shares even more unattractive to own on the post-earnings decline. BofA Warns of a Further Decline in Supermicro Shares Bank of America analyst Ruplu Bhattacharya reiterated his 'Underperform' rating on SMCI stock today, quoting another hit to gross margins as customers continued to prefer waiting for Nvidia's (NVDA) next-gen chips. More importantly, inventory reserves for older generation products will remain a notable headwind for Super Micro shares in future quarters 'as Nvidia and AMD will continue to launch new GPUs with step function changes in functionality,' he told clients in a research note on Wednesday. BofA currently has a $37 price target on Supermicro stock, which indicates potential for another 15% downside from current levels. Wall Street Isn't Positive on Super Micro Stock Either While not as bearish as the Bank of America, other Wall Street firms also caution against buying the post-earnings dip in SMCI stock on Wednesday. According to Barchart, the consensus rating on Super Micro Computer currently sits at 'Hold' only, with the mean target of about $43 suggesting the company's share price could decline another 5% from here. On the date of publication, Wajeeh Khan 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 Sign in to access your portfolio
Yahoo
07-08-2025
- Business
- Yahoo
Super Micro Computer and AMD stock prices tumble as AI growth fears overshadow earnings
Two of the tech industry's AI hardware companies are seeing their share prices drop after they reported their most recent quarterly earnings after the closing bell yesterday. AT&T to pay $177 million in data breach settlement. Here's how to claim up to $5,000 Wells Fargo is rolling out company wide AI. It says everyone from branch tellers to investment bankers will benefit New research shows the 10 jobs most at risk of being replaced by AI—and 10 jobs that are safe The stock prices of Super Micro Computer, Inc. (Nasdaq: SMCI) and Advanced Micro Devices, Inc. (Nasdaq: AMD) are down significantly over investor fears that artificial intelligence-related growth is lagging expectations. Here's what you need to know. Supermicro misses expectations Shares in Super Micro Computer (aka Supermicro) are trading sharply lower in premarket as of the time of this writing. Currently, SMCI shares are down more than 16.2% to $47.95. The reason for this dramatic stock price drop has everything to do with the company's just-announced Q4 2025 results. The server maker announced Q4 net sales of $5.8 billion, which was up significantly from the $4.6 billion it posted in Q3. Net income for the quarter was $195 million, which was also up from Q3, when the company posted $109 million in net income. Finally, its Q4 earnings per share (EPS) were 41 cents, up from 31 cents in Q3. So if Supermicro's results were up over the last quarter, why is the stock falling? It's a combination of expectations and sales that fall short of past quarters. While Supermicro posted net income of $195 million—around $86 million more than the previous quarter—that was down from its $297 million in net income during the same quarter a year earlier. As noted by CNBC, the year-over-year Q4 net income decline is partially attributable to Supermicro's costs from President Trump's tariffs. However, costs aren't the only thing bugging Super Micro Computer investors. The company's results also didn't meet investor expectations. LSEG consensus estimates for the quarter were an EPS of 44 cents, three cents short of what Supermicro delivered. Investors also expected revenue of $5.89 billion—more than the $5.76 billion that Supermicro reported. As Reuters notes, many attribute the company's lower-than-estimated revenue to Supermicro losing out on AI server sales to its bigger competitors, including Dell and HP. Finally, Super Micro Computer also disappointed investors by forecasting full-year fiscal 2026 net sales to total at least $33 billion. Previously, the company had said it expected net sales of around $40 billion in 2026. All this has led to growth fears: While the AI revolution may mean high demand for servers that are needed for artificial intelligence, Supermicro isn't benefiting from that demand as much as hoped. AMD missed expectations, too AI chipmaker AMD is also facing stock price declines this morning—though not as severe as Super Micro's. The company posted its Q2 2025 results after the bell yesterday, and since then its shares are down nearly 7% to $162.16 in premarket trading as of the time of this writing. AMD posted a Q2 revenue of $7.7 billion and net income of $781 million. Its earnings per share (EPS) for the quarter was 48 cents. However, as with Supermicro, AMD's EPS was below expectations. As noted by CNBC, the LSEG consensus was that AMD would report an EPS of 49 cents. The company also suffered hundreds of millions in lost sales after the Trump administration banned sales of its MI308 chips to China. However, this ban may soon be reversed. As Reuters notes, AMD did post a 14% revenue rise in its important data center unit, yet this sum of $3.2 billion was also slightly below expectations, suggesting investors fear that AMD isn't benefiting to the maximum degree that it can from the AI chip boom. Stock price history and future challenges Before today's premarket decline for Supermicro and AMD, shares in both companies have had a good run in 2025. As of yesterday's close of market, AMD shares had risen 44% in 2025. SMCI shares surged 87% in the same period. Looking back over the past 12 months, AMD shares were up nearly 30% as of yesterday's close. SMCI shares were down nearly 6% for the same period. However, the company had been plagued last year and earlier this year by an accounting crisis that had risked its delisting from the Nasdaq. It eventually filed delinquent forms with the Securities and Exchange Commission (SEC) in February. This post originally appeared at to get the Fast Company newsletter: 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
