2024-04-19 17:29:00
Shares of Super Micro, which entered the S&P 500 in March, are still up about 168% this year after climbing 246% in 2023. It currently trades at a market cap of $44.4 billion. The server and computer infrastructure company, as mentioned, is the main supplier of Nvidia, whose technology is the backbone of most companies that use models based on artificial intelligence.
Super Micro is expected to publish its financial reports for the first quarter of this year on April 30, and analysts expect adjusted profit of $5.84 per share on revenue of $4.01 billion. While Super Micro got a big boost from its ties to Nvidia, the market remains shaky as rivals including Dell and Hewlett Packard Enterprise plan to build systems using the latest and greatest Blackwell graphics processing units. Nvidia innovation.
In fact, the drop in Super Micro stock can be attributed to the fact that the company has deviated from its tradition in seven of the last eight quarters in which it has published preliminary results about a week or two before the publication of official results. Last January, for example, the company significantly increased its sales and profit forecast, just 11 days before the publication of the official reports. The non-publication of the preliminary results, as mentioned, contrary to what has been done so far, causes investors to question whether the company is expected to present lukewarm results or worse, without meeting the expectations of the analyzed.
For the quarter, Super Micro had previously forecast sales of $3.7 billion to $4.1 billion, with adjusted earnings of $5.20 to $6.01 per share. For the fiscal year ending June 2024, the company forecast revenue between $14.3 billion and $14.7 billion. For the full year, analysts expect sales of $14.6 billion and adjusted earnings of $21.95 per share.
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