Core Viewpoint - Super Micro Computer's stock dropped 15% after the announcement of preliminary third-quarter adjusted EPS data, which ranged from $0.29 to $0.31, significantly below analysts' expectations of $0.53 [1] Summary by Category Financial Performance - The preliminary adjusted EPS for Super Micro Computer's third quarter is projected to be between $0.29 and $0.31 [1] - Analysts had anticipated an EPS of $0.53, indicating a substantial shortfall in expected earnings [1] Market Reaction - Following the earnings announcement, Super Micro Computer's stock experienced a decline of 15% in after-hours trading [1]

Market Reaction - Semiconductor stocks experienced significant declines, with Wolfspeed dropping 14.6%, NXP Semiconductors down 6.6%, and Rambus falling 4.7% [1] - Other notable declines include ON Semiconductor at 2.4%, Supermicro at 2.3%, and Micron Technology at 1.67% [1] Government Policy Impact - The Trump administration is reportedly working on modifying a rule from the Biden era that restricts most countries from accessing U.S.-designed AI chips [1] - The proposed changes may involve replacing the current tiered system with intergovernmental agreements [1]

Core Viewpoint - Super Micro Computer, Inc. (SMCI) is set to report strong revenue growth in its third-quarter fiscal 2025 results, driven by the booming demand for AI infrastructure [1] Group 1: Revenue Growth - The Server and Storage Systems segment is projected to generate revenues of $5.08 billion in the third quarter, reflecting a 37.4% increase year-over-year [2] - The anticipated growth is primarily fueled by the rising demand for GPU-optimized servers designed for AI workloads [3] - The company's early availability of systems based on NVIDIA's new Blackwell GPU architecture has contributed to this momentum [4] Group 2: Competitive Advantages - Super Micro Computer's leadership in direct liquid cooling (DLC) technology has provided a significant competitive edge, as data centers increasingly adopt these solutions for energy efficiency [5] - The expansion of the company's Datacenter Building Block Solutions has likely enhanced adoption among enterprises and hyperscalers [4] Group 3: Financial Outlook - Despite expected pressure on margins due to customer mix and investments in next-generation platforms, strong revenue growth in the Server and Storage Systems segment is anticipated to mitigate earnings challenges [6]

Group 1: Market Overview - Wall Street has experienced significant volatility in 2025 due to fears of a potential recession and new tariff wars, presenting opportunities for long-term wealth compounding [1][2] Group 2: Nvidia - Nvidia's shares are down nearly 31% from their January peak, yet the business remains strong [3] - The recently launched Blackwell chips significantly enhance AI computing capabilities, generating over $11 billion in revenue during the most recent quarter [4] - Nvidia has transitioned from a gaming-focused company to a full-stack AI infrastructure giant, with a potential addressable AI infrastructure market of around $2 trillion [5] Group 3: Microsoft - Microsoft is a dominant player in AI, with its Azure cloud computing platform driving major growth [6] - The AI-powered Copilot assistant is attracting new customers and increasing usage among large enterprises [7] - Microsoft is trading at 25.9 times forward earnings, below its five-year average of 33 times, presenting a buying opportunity [8] Group 4: Super Micro Computer - Super Micro Computer leads the AI server market and is a beneficiary of the global AI infrastructure market, projected to exceed $200 billion by 2028 [9] - The company anticipates reaching $40 billion in revenues for fiscal 2026, implying around 65% year-over-year growth [9] - Manufacturing capacity is expected to increase, with current utilization rates at 55% in the U.S., 60% in Taiwan, and only 1% in Malaysia [10] Group 5: ServiceNow - ServiceNow's Now platform automates digital workflows, benefiting from the growing digitization trend across various industries [12] - Subscription revenues rose 20% year-over-year, with current remaining performance obligations growing 22% year-over-year [13] - The number of ServiceNow Pro Plus deals quadrupled year-over-year, indicating strong momentum in AI initiatives [14]

Super Micro Computer, Inc. (SMCI) is set to report its third-quarter fiscal 2025 on April 29.For the fiscal third quarter, the company expects revenues between $5 billion and $6 billion. The Zacks Consensus Estimate is pegged at $5.34 billion, indicating growth of 38.6% from the year-ago quarter’s reported value.Super Micro Computer expects non-GAAP earnings per share between 46 cents and 62 cents. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share, suggesting a decline of 22.4% from ...

Core Viewpoint - U.S. stock markets are experiencing high volatility due to tariffs imposed by the Trump administration, leading to significant price drops in several stocks, making them attractive investment opportunities in the short term [1]. Group 1: Recommended Stocks - Affirm Holdings Inc. (AFRM), Marvell Technology Inc. (MRVL), Super Micro Computer Inc. (SMCI), QUALCOMM Inc. (QCOM), and Edison International (EIX) are identified as stocks with strong revenue and earnings potential for 2025, supported by positive earnings estimate revisions in the last 60 days [2]. Group 2: Affirm Holdings Inc. (AFRM) - Affirm Holdings has diverse income streams, expecting revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [3][4]. - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for AFRM's expansion, which has also entered the UK market [4]. - AFRM has an expected revenue growth rate of 37.1% and earnings growth rate of 96.4% for the current year, with a Zacks Consensus Estimate for earnings improving by 53.8% in the last 30 days [5]. - The stock is trading at a 40.5% discount from its 52-week high, with a potential upside of 75.2% based on brokerage target prices [6]. Group 3: Marvell Technology Inc. (MRVL) - Marvell Technology is experiencing strong demand in the data center market, with revenues increasing by 98% year-over-year, driven by AI-related products [7][9]. - MRVL has an expected revenue growth rate of 43.8% and earnings growth rate of 75.8% for the current year, with a slight improvement in earnings estimates [11]. - The stock is trading at a 53.7% discount from its 52-week high, with a potential upside of 219.1% based on brokerage target prices [12]. Group 4: Super Micro Computer Inc. (SMCI) - Super Micro Computer manufactures IT solutions for AI, Cloud, and 5G technologies, with its products gaining traction in the market [13][14]. - SMCI has an expected revenue growth rate of 59.2% and earnings growth rate of 14% for the current year [16]. - The stock is trading at a 64% discount from its 52-week high, with a potential upside of 174.2% based on brokerage target prices [18]. Group 5: QUALCOMM Inc. (QCOM) - QUALCOMM is transitioning to a connected processor firm, benefiting from 5G technology and strategic collaborations, including one with Google for AI solutions [19][20]. - The company has an expected revenue growth rate of 11.9% and earnings growth rate of 16% for the current year, with a slight improvement in earnings estimates [22]. - The stock is trading at a 35.6% discount from its 52-week high, with a potential upside of 68.3% based on brokerage target prices [24]. Group 6: Edison International (EIX) - Edison International plans to invest $26.6 billion to $31.5 billion from 2025 to 2028 to enhance its infrastructure and expand its renewable energy portfolio [25]. - The company has an expected revenue growth rate of 2.8% and earnings growth rate of 19.7% for the current year, with a slight improvement in earnings estimates [28]. - The stock is trading at a 34.6% discount from its 52-week high, with a potential upside of 48.3% based on brokerage target prices [30].

Group 1 - Super Micro Computer (SMCI) closed at $36.43, with a +1.73% increase, outperforming the S&P 500's gain of 0.74% [1] - Over the last month, SMCI shares increased by 3.14%, while the Computer and Technology sector lost 6.23% and the S&P 500 lost 4.77% [1] Group 2 - The upcoming earnings release is expected to show an EPS of $0.52, a 22.39% decrease from the same quarter last year, with projected revenue of $5.34 billion, up 38.58% year-over-year [2] - For the entire fiscal year, earnings are estimated at $2.52 per share and revenue at $23.78 billion, reflecting increases of +14.03% and +59.17% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for Super Micro Computer are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Super Micro Computer as 1 (Strong Buy) [6] Group 4 - Super Micro Computer has a Forward P/E ratio of 14.21, which is higher than the industry's average Forward P/E of 12.2 [7] - The Computer-Storage Devices industry is ranked 167 in the Zacks Industry Rank, placing it in the bottom 33% of over 250 industries [7]

Super Micro Computer, Inc. (SMCI) shares have plunged 19.1% in the past month, underperforming the broader tech sector’s decline of 12.2%.Super Micro Computer’s recent decline stems from a mix of broader market weakness. A widespread sell-off in tech stocks, triggered by fears of rising trade tensions and slowing economic growth concerns, has put pressure on the entire sector, including Super Micro Computer.This decline in the share price of this semiconductor leader raises the question: Should investors ta ...

Core Insights - The generative AI industry continues to produce increasingly advanced models at a rapid pace, despite theoretical limitations [1] - OpenAI has recently released new reasoning AI models, o3 and o4-mini, showcasing the advancements in the field [1] Industry Developments - The pace of innovation in generative AI is accelerating, with new models being developed and deployed quickly [1] - The expertise in AI and machine learning is growing among professionals, as evidenced by the pursuit of advanced certifications in the field [1] Market Position - The article highlights the author's position as a knowledgeable contributor in the AI and machine learning space, indicating a strong understanding of the market dynamics [1]

Kubernetes storage is becoming increasingly popular as it facilitates greater agility and scalability. This has bolstered the deployment of high-capacity mass storage products, a positive for industry players. Super Micro Computer Inc. Super Micro Computer is a total IT solution manufacturer for AI/ML (machine language), Cloud, HPC, Storage and 5G/Edge technologies. SMCI's rack-scale plug-and-play Total AI and IT Solutions (especially the Deep- Learning and LLM-optimized ones based on NVDA's HGX-H100) are g ...