Earnings expectations for AI stocks are falling BofA GLOBAL RESEARCH Shares fell big after the report, however. The 14% decline on May 1, 2024, was the worst post-earnings day performance since August 2023. Looking ahead, the options market prices in a high 10.4% earnings-related stock price swing when assessing the at-the-money straddle pricing, according to data from Option Research & Technology Services. The survey shows operating EPS of $8.22 in the quarter that just finished up - that would be a 134% Y ...

A relatively unknown artificial intelligence enabled server seller not long ago, Super Micro Computer (NASDAQ:SMCI) is now a darling of the financial market. Some folks like to jump on the bandwagon and buy "superstar stocks." That's fine until the music stops and Super Micro Computer stock investors are left holding the proverbial bag. Don't get the wrong idea. Super Micro Computer's market capitalization could keep growing in this year's second half. However, it's a question of risk-versus-reward at this ...

While Nvidia's (NASDAQ: NVDA) performance has been impressive to start the year, it hasn't outperformed one stock in the S&P 500, Super Micro Computer (SMCI -1.35%). So far in 2024, Supermicro is up around 217%, while Nvidia trails it with a 172% rise. Regardless, you're incredibly happy if you've owned either of these stocks. But could Supermicro continue its outperformance to cap off an incredible rise in 2024? Super Micro Computer is another beneficiary of the artificial intelligence arms race But will t ...

Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. The server technology company's shares have seen an increase of 7.75% over the last month, surpassing the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78 ...

Shares of Super Micro Computer (NASDAQ:SMCI) stock opened in the green after Nasdaq announced that it had selected the company to join the Nasdaq-100 Index and the Nasdaq-100 Equal Weighted Index. Super Micro will replace Walgreens Boots Alliance (NASDAQ:WBA), which is down by over 50% year-to-date (YTD). The replacement will take place before the market opens on Monday, July 22. "This milestone is a testament to our relentless dedication, innovative spirit, and unwavering commitment to exceeding customer e ...

Group 1: Market Dynamics and Company Overview - Enthusiasm around artificial intelligence (AI) has significantly influenced market performance, with investors seeking less obvious AI opportunities beyond major tech stocks like Nvidia and Microsoft [1] - Supermicro specializes in IT infrastructure, designing architecture solutions such as storage clusters for high-performance GPUs, but is not a semiconductor company [3][19] - The company has seen its shares rise over 200% this year, reflecting heightened interest in AI-related stocks [10][18] Group 2: Financial Performance and Challenges - Supermicro's gross margin is currently plateauing, which may pose long-term challenges for the company [5][6] - Despite rising revenue due to increased demand for chips, Supermicro's capital expenditures (capex) have also surged, indicating rising operational costs [14][20] - The semiconductor industry is cyclical, and while current demand is strong, normalization of supply and demand trends is expected [15] Group 3: Valuation and Competitive Landscape - Supermicro's price-to-earnings (P/E) ratio is significantly higher than that of larger, more diversified competitors like IBM and Dell, suggesting potential overvaluation [17][23] - The company is viewed as a trade rather than a long-term investment opportunity, with better options available in the chip and AI sectors [24]

It's not necessarily a bad thing. But offering shares did cause it to slip from highs. Shares of computing company Super Micro Computer (SMCI 2.33%) had a super, massive 188.2% gain in the first half of 2024, according to data provided by S&P Global Market Intelligence. That's incredible enough. But by March, the stock was already up more than 300% year to date, which dwarfs its first-half returns by comparison. Put another way, Super Micro Computer stock is down more than 20% from its 2024 high. So, depend ...

It's holding a fair lead over its rival, but can Supermicro keep up this incredible run? Or is it set to be caught by the seemingly unstoppable engine known as Nvidia? The investment thesis driving Nvidia higher is the same one that is affecting Supermicro. Nvidia's primary products are graphics processing units (GPUs), which are used by the hundreds or thousands to create incredibly powerful computers used to train artificial intelligence (AI) models. However, connecting these GPUs together so that they ca ...

Although Super Micro Computer stock has rallied over the past month, rising 15% to $895 per share, shares of the premier provider of AI-optimized computers, servers, networks, storage solutions and data center workstations remains depressed. Super Micro Computer (NASDAQ:SMCI) has largely been trading sideways since its big drop began in March. Having hit an all-time high $1,229 per share, it really tumbled hard after full-year earnings suggested a slowdown was coming. Since then, the stock remains 3.5% belo ...

Super Micro Computer surges with 600% earnings boost, projects $5.5 billion in revenue amid AI boom 3,851 Source: Super Micro Computer presentation Finally, like any other technology company, Super Micro Computer could be threatened by economic cycles and heavy competition. However, specialization in hot niches like AI cooling solutions and customized server products protects the former from these disturbances. Thus, continuous innovation and flexibility to adjust according to market demand opens new opport ...