Charles Liang, CEO of Super Micro, speaks at the HumanX AI conference at in Las Vegas on March 10, 2025.Super Micro issued disappointing guidance on Tuesday, a week after the server maker provided preliminary results for the latest quarter that fell far shy of Wall Street's expectations. The stock slid about 4% in extended trading. Here's what the company reported in comparison with LSEG consensus:Earnings per share: 31 cents adjusted vs. 50 cents expectedRevenue: $4.60 billion vs. $5.42 billion expectedWhi ...

Financial Results Announcement - Super Micro Computer, Inc. announced preliminary unaudited financial results for the quarter ended March 31, 2025[5]. - The report was filed on April 29, 2025, indicating timely compliance with SEC regulations[2]. - The press release detailing financial results is attached as Exhibit 99.1[7]. - No specific financial figures or performance metrics were disclosed in the provided content[5]. Company Information - The company is listed on the NASDAQ Global Select Market under the symbol SMCI[3]. - The company operates from its headquarters located at 980 Rock Avenue, San Jose, California[2]. - The report was signed by Charles Liang, the President and CEO, affirming the authenticity of the information[11]. Compliance and Reporting - The company has not elected to use the extended transition period for new financial accounting standards[4]. - The financial results will not be deemed "filed" under the Exchange Act, ensuring clarity in reporting[6]. - The filing does not indicate any emerging growth company status[4].

Core Viewpoint - Super Micro Computer Inc. (SMCI) is set to report its third-quarter 2025 earnings, with Wall Street anticipating earnings per share of 50 cents on revenue of $5.42 billion, although investor confidence remains low due to significant stock declines and past issues [1][2]. Financial Performance - The stock has decreased by 60.99% over the past year and is down 1.85% in the last month, despite a year-to-date gain of 7.79% [1]. - Allegations of accounting irregularities and delayed financials have led to a loss of over 80% of its market cap from peak levels [2]. Technical Analysis - SMCI stock is currently priced at $32.33, below all major moving averages, indicating a bearish trend [3]. - The eight-day simple moving average is $34.07, the 20-day is $33.33, the 50-day is $36.55, and the 200-day is $41.03, all suggesting downward momentum [3]. - The Moving Average Convergence Divergence (MACD) is at a negative 0.82, and the Relative Strength Index (RSI) is at 45.38, indicating a lack of bullish conviction [4]. Analyst Ratings - Recent ratings from Barclays, JPMorgan, and Mizuho suggest a consensus price target of $34.67, representing a 7.49% upside from current levels, with a "Neutral" consensus rating due to governance concerns and margin pressures [5].

Market Overview - US stock index futures are all down, with Dow futures down 0.77%, S&P 500 futures down 0.93%, and Nasdaq futures down 1.21% [1] - European indices also show declines, with Germany's DAX down 0.89%, UK's FTSE 100 down 0.22%, France's CAC40 down 0.52%, and the Euro Stoxx 50 down 0.70% [2] - WTI crude oil increased by 2.15% to $58.36 per barrel, while Brent crude rose by 2.06% to $61.47 per barrel [2] Company News - Goldman Sachs indicates that recent earnings reports from major tech companies in the AI sector have boosted investor confidence, suggesting that recent pullbacks present a buying opportunity [3] - DoorDash reported Q1 revenue growth of 20.7% to $3.03 billion, with adjusted EBITDA of $590 million, exceeding market expectations [4] - Philips lowered its annual profit forecast due to the impact of US tariffs, estimating a net effect of €250 million to €300 million (approximately $283 million to $340 million) [5] - Palantir's Q1 revenue surged 39% to $884 million, leading to an upward revision of its 2025 revenue forecast to approximately $3.9 billion, a 36% year-over-year increase [5] - Ford's Q1 revenue fell 5% to $40.7 billion but exceeded analyst expectations, while the company withdrew its full-year profit guidance [6] - Apple is expected to launch AI features in China with support from Alibaba and Baidu, integrating local compliance mechanisms [7] - WeRide expanded its strategic partnership with Uber to deploy autonomous Robotaxi services in 15 cities over the next five years [8] - The US Department of Justice is pushing for the forced divestiture of Google's online advertising business, citing illegal monopoly practices [9]

Core Viewpoint - Super Micro Computer (Supermicro) is positioned as a potential investment opportunity in the AI sector, but its ability to deliver extraordinary returns is questioned due to competitive pressures and operational challenges [2][7][9]. Company Overview - Supermicro is valued at $19.2 billion and is involved in the AI computing power build-out, producing server racks for high-performance computing hardware [2][5]. - The company utilizes advanced technologies like direct liquid cooling (DLC), which can provide up to 40% energy savings and 80% space savings, enhancing operational efficiency [6]. Financial Performance - Supermicro generated $20 billion in revenue over the past 12 months and aims for a $50 billion revenue run rate, indicating strong growth potential [7]. - The stock is currently trading at 13.2 times forward earnings, significantly lower than the S&P 500 average of 21 times forward earnings, suggesting it is undervalued [9][11]. Market Position and Competition - The industry is highly competitive, with little differentiation among competitors, which contributes to the lack of a premium on Supermicro's stock [12]. - Allegations of accounting irregularities previously affected investor sentiment, although the company has been cleared of wrongdoing [12]. Operational Challenges - Recent preannounced results indicate a sales expectation of about $4.5 billion for the fiscal third quarter, down from an earlier projection of $5 billion to $6 billion, reflecting potential execution issues [13].

Super Micro Computer TodaySMCISuper Micro Computer$33.71 +0.98 (+2.99%) 52-Week Range$17.25▼$101.40P/E Ratio16.92Price Target$48.73Add to WatchlistShares of Super Micro Computer Inc. NASDAQ: SMCI have been on a roller coaster of a ride over the past 12 months, swinging by triple-digit percentage points due to company-specific speculation and industry-wide uncertainties impacting future expectations of the business fundamentals. Some of these uncertainties have been cleared, while others seem to still have ...

Core Viewpoint - Super Micro Computer (SMCI) has experienced significant volatility, with its stock losing about two-thirds of its value over the past year due to disappointing earnings and various operational challenges [1][2]. Company Performance - Supermicro's fiscal Q3 earnings are expected to be disappointing, with revenue forecasts lowered from $5 billion to $6 billion to a new range of $4.5 billion to $4.6 billion [9][10]. - The adjusted earnings per share (EPS) forecast has also been reduced from a range of $0.46 to $0.62 to $0.29 to $0.31, indicating a decline from the previous year's adjusted EPS of $0.66 [10][11]. - The company's gross margin has been under pressure, dropping from 17% a year ago to 11.3% in fiscal Q4, and further declining to an expected 9.7% in the most recent quarter [7][8]. Market Dynamics - Supermicro operates in a highly competitive and commoditized market, primarily integrating systems around Nvidia's GPUs, which has led to low gross margins [6][5]. - Customers are delaying decisions on platform purchases, opting to wait for Nvidia's new Blackwell chip instead of purchasing older Hopper chip-based servers, which may lead to inventory issues [11][12]. Investment Considerations - Despite a forward price-to-earnings ratio of under 12x, Supermicro's low gross margin and the nature of its business have historically resulted in a lower valuation multiple [15]. - The company is positioned to benefit from the AI infrastructure buildout, but it must address its inventory and margin challenges to capitalize on this opportunity [16].

Group 1: AI Market Overview - The AI market was valued at $189 billion in 2023 and is expected to surpass $4 trillion by 2032 [1] Group 2: Company Profiles - Nvidia and Super Micro Computer are both positioned to benefit from rising AI demand, but they have different strategies [2][3] - Super Micro Computer specializes in selling custom servers designed for AI applications, while Nvidia supplies GPUs that are integral to these systems [4] Group 3: Financial Performance - Both companies are projected to achieve over 50% sales growth this year due to increased AI infrastructure spending [5] - Nvidia's gross margins are over six times higher than those of Super Micro Computer, and its price-to-earnings (P/E) ratio is more than double [5] Group 4: Competitive Position - Nvidia controls 70% to 95% of the AI GPU market, while Super Micro Computer holds only 8% of the AI server market, indicating Nvidia's stronger competitive position [8] - Nvidia's business model is harder to replicate compared to Super Micro Computer's, which is more susceptible to commoditization [7] Group 5: Future Outlook - Super Micro Computer's revenues are expected to grow with rising AI infrastructure investments, but its gross margins are not anticipated to expand significantly due to the commoditized nature of its business [9] - Nvidia is expected to maintain its industry-leading margins and is considered a fair investment at 25 times forward earnings, given its dominant market position and growth potential [9]

Core Viewpoint - Super Micro Computer Inc. (NASDAQ: SMCI) experienced a significant decline in stock price, dropping 12% following the release of disappointing preliminary results for its second financial quarter [1] Company Summary - The stock price of Super Micro Computer Inc. fell sharply, indicating investor reaction to the company's underperformance in its latest financial results [1]

Group 1 - The analyst focuses on macroeconomic trends with a global perspective, emphasizing sectors such as technology, semiconductors, AI, and energy [1] - The investment strategy is centered on a long-only, unleveraged portfolio aimed at capital preservation and capturing asymmetric upside during market dislocations [1] - The Nasdaq High-Alpha Black Swan Portfolio is a key component of the analyst's work, designed for resilience and long-term outperformance [1] Group 2 - The analyst has disclosed a beneficial long position in shares of NVDA and AMD, indicating a personal investment interest in these companies [2] - The article expresses the analyst's own opinions without any compensation from the companies mentioned, ensuring an independent viewpoint [2]