Erik Isakson Investment Thesis Super Micro Computer (NASDAQ:SMCI), one of the fastest-growing technology vendors of data center racks and server cooling solutions, has seen the value of its market capitalization sliced in half, currently lingering at ~$43 billion from a high of $86.3 billion in March this year. Part of the reason for Super Micro Computer's underperformance in the past few months is the cooling sentiment in the broader level of AI enthusiasm that was aggravated in the last 2-3 weeks by the u ...

Super Micro Computers (NASDAQ:SMCI) stock was among the names that skyrocketed on artificial intelligence (AI) hype. In March, SMCI stock touched all-time highs of $1,229. There has been a deep correction from those levels for the AI-driven infrastructure solutions provider. Currently, SMCI stock trades at $540.98. However, I would prefer to stay away from SMCI stock since better investment options are available in AI. True, a forward P/E of 14.8 looks attractive. Yet, the markets have ignored the P/E metri ...

Does the AI server maker's recent pullback represent a buying opportunity? Super Micro Computer (SMCI 6.33%), more commonly known as Supermicro, has been one of the market's hottest artificial intelligence (AI) stocks. Its close relationship with Nvidia granted it access to the chipmaker's top-tier data center GPUs before many of its competitors, and its sales of AI servers skyrocketed as more companies upgraded their data centers to process complex AI tasks. But over the past few months, Supermicro stock h ...

Key Takeaways Super Micro Technology stock posted solid gains on Monday, clawing back some of the losses posted after last week's earnings report. Declining margins contributed to the pressure on the stock, but Supermicro said it sees a path to margin improvement through manufacturing efficiencies. A report published over the weekend highlighted the potential of Supermicro's direct liquid cooling technology. Super Micro Computer (SMCI) shares jumped more than 6% on Monday, recovering a portion of the steep ...

After last week's post-earnings sell-off, news around liquid cooling demand is helping the stock to bounce back strongly today. Shares of artificial intelligence (AI) server specialist Super Micro Computer (SMCI 6.28%) were rallying in Monday trading, up 7.2% as of 12:04 p.m. ET. The server maker plunged last week after the company's fiscal fourth-quarter earnings report, which showed booming revenue growth but also a decline in margins. But after last week's drubbing, along with the recent sell-off in AI-r ...

After reporting earnings last week, investors in Super Micro Computer (NASDAQ:SMCI) certainly appear to be questioning the company's gross margins and what this could mean for the company long-term. Indeed, SMCI stock remains well off its pre-report levels, still trading roughly 12% below pre-report levels. That said, SMCI stock is making a comeback today, with Super Micro investors appearing to digest recent commentary around demand for the company's direct liquid cooling technology. Shares of the server a ...

Investment Rating - The report maintains a rating of "Buy" for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [11]. Core Insights - The company reported a record revenue of $5.308 billion for Q4 FY2024, representing a year-over-year growth of 142.95% and a quarter-over-quarter growth of 37.87%. The full-year revenue for FY2024 reached $14.943 billion, up 109.77% year-over-year [1][2]. - The company is experiencing strong demand for its next-generation air-cooled and direct liquid-cooled AI GPU platforms, although some key component shortages have delayed approximately $800 million in orders to July [2]. - The company is expanding its product matrix in AI and enhancing its liquid cooling product delivery capabilities, with plans to increase liquid cooling rack production capacity from 1,500 units per month to 3,000 units by the end of FY2025 [2][4]. - The company expects to see a gradual improvement in gross and operating profit margins in FY2025, driven by changes in product and customer mix, improved manufacturing efficiency, and new platform launches [2][4]. Financial Summary - For FY2023, the company achieved a revenue of $7.123 billion, with a projected revenue of $14.943 billion for FY2024, and estimates of $28 billion, $36.653 billion, and $42.315 billion for FY2025, FY2026, and FY2027 respectively [1][6]. - The net profit for FY2023 was $640 million, with projections of $1.208 billion for FY2024, $1.998 billion for FY2025, $2.950 billion for FY2026, and $4.130 billion for FY2027 [1][6]. - The company’s ROE is projected to be 32.5% for FY2023, decreasing to 22.1% in FY2024, and then gradually increasing to 28.4% by FY2027 [1][7]. - The EPS is expected to rise from $10.64 in FY2023 to $68.68 by FY2027, reflecting strong earnings growth [1][7]. Industry Overview - The company operates in the high-performance server and storage systems market, focusing on enterprise data centers, cloud computing, AI, 5G, and edge computing [4]. - The company has launched several innovative products in FY2024, enhancing its product delivery capabilities and expanding its application range [4].

7 August 2024 | 3:15AM EDT Super Micro Computer Inc. (SMCI): F4Q24 review: Gross margin weakness offsets better revenue outlook SMCI's F4Q24 EPS missed ($6.25 v. $7.62-$8.42 guidance) as in-line revenue of $5.3 bn (v. $5.1-$5.5 bn guidance) was more than offset by a gross margin miss at 11.3% (v. consensus 14.2%). Weaker than expected gross margins of 11.3% were impacted by SMCI's focus on strategic new design wins with competitive pricing to win market share, customer mix (e.g., emerging hyperscalers) and ...

This fast-growing company could turn out to be a solid long-term investment thanks to a huge end-market opportunity. Super Micro Computer (SMCI -0.23%) has been one of the hottest stocks on the market this year, clocking tremendous gains of 73% as of this writing, but a closer look at the stock's more recent performance tells us that its bull run has come to an end. In fact, shares of Supermicro (as the company is known) are down 58% since hitting a 52-week high on March 8. However, the company, which manuf ...

Super Micro Computer Today SMCI Super Micro Computer $508.76 -1.18 (-0.23%) 52-Week Range $226.59 ▼ $1,229.00 P/E Ratio 28.52 Price Target $911.85 Add to Watchlist Super Micro Computer NASDAQ: SMCI has been an extremely hot stock in 2024, with a total return of nearly 80%. The technology company has vastly outperformed the market and its sector. The Technology Select Sector SPDR Fund NYSEARCA: XLK has returned only 7%. The company made the news recently when it announced a 10-for-1 stock split, which will g ...