Financial Performance - Net sales for the three months ended December 31, 2025, reached $12.68 billion, a 123.4% increase compared to $5.68 billion in the same period of 2024[199][200]. - Gross profit for the same period was $798.57 million, with a gross margin decrease to 6.3% from 11.8% year-over-year, attributed to competitive pricing strategies[199][200]. - Net income increased to $400.6 million for the three months ended December 31, 2025, compared to $320.6 million in 2024, primarily driven by higher net sales[193][200]. - Operating expenses rose by 7.6% to $324.27 million, mainly due to increased headcount and higher salary and stock-based compensation costs[199][200]. - Net sales for the three months ended December 31, 2025, increased by $7,004.5 million or 123.4% year-over-year, reaching $12,682.5 million, driven by datacenter deployments and a large design win[216][217]. - AI GPU related products saw a significant increase in billings of $7,398.2 million or 169.7% year-over-year, contributing to the overall sales growth[217]. - Net income for the three months ended December 31, 2025, was $400.6 million, compared to $320.6 million in the same period of 2024, representing a 25.0% increase[216]. - The company experienced a decrease in sales across other product categories by $475.9 million or 42.5% as it focused on AI GPU platforms[217]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, totaled $324.3 million, a 7.6% increase from the previous year, with research and development expenses rising by 14.3%[224][226]. - Total operating expenses for the six months ended December 31, 2025, were $609.4 million, up 7.3% from $567.8 million in 2024[224]. - The gross margin for the six months ended December 31, 2025, decreased to 7.2% from 12.4% in the prior year, attributed to changes in product mix and increased costs[223]. - General and administrative expenses increased by $6.8 million or 10.7%, primarily due to a $6.4 million or 567.4% rise in excise and franchise tax expense related to increased sales[228]. - Research and development expenses rose by $63.6 million or 21.9%, driven by a $60.1 million or 22.1% increase in employee-related costs, including a $36.2 million or 21.8% increase in salaries[229]. - Sales and marketing expenses decreased by $27.4 million or 18.5%, mainly due to a $28.8 million or 268.3% increase in marketing development funds received from partners[230]. Cash Flow and Investments - Cash and cash equivalents decreased to $4.1 billion as of December 31, 2025, down from $5.2 billion as of June 30, 2025[245]. - Net cash used in operating activities was $(941.4) million for the six months ended December 31, 2025, a decrease of $1,110.5 million compared to the prior year[249]. - Net cash used in investing activities for the six months ended December 31, 2025, was $53.5 million for property, plant, and equipment purchases, and $25.0 million for equity securities[251]. - Net cash provided by financing activities during the same period was $115.4 million, primarily from lines of credit and term loans, offset by $71.1 million for withholding taxes related to equity awards[252]. - The increase in cash used in investing activities compared to the previous year was primarily due to higher property, plant, and equipment purchases[251]. Future Outlook and Strategy - The company plans to enhance its product capabilities and expand service offerings, particularly in the AI and data center markets, to capture greater market share[197]. - The company emphasizes the importance of rapidly introducing new products and integrating emerging technologies to maintain competitive advantage[195]. - The company recognizes the need to strengthen its network of sales partners and distribution channels to further expand market share[194]. - Future capital requirements will depend on growth rate, timing of investments for product development, and expansion of sales and marketing efforts[256]. - The company will continue to evaluate new business opportunities and markets, which may necessitate additional facilities and capital expenditures[255]. - Anticipated capital expenditures for the remainder of fiscal year 2026 are projected to be between $200.0 million and $220.0 million, focusing on global manufacturing capabilities and new product tooling[255]. Economic and Market Conditions - Macroeconomic factors such as inflation and supply chain constraints have impacted the company's operations and may continue to do so[198]. - The company has limited exposure to foreign exchange rate fluctuations as most sales and purchases are in U.S. dollars, with minimal historical impact from currency re-measurement[263]. - A 10% change in interest rates is not expected to significantly impact the results of operations based on current investment and borrowing levels[262]. - Interest rates for term loans and revolving lines of credit ranged from 1.3% to 5.9% as of December 31, 2025, with an outstanding principal indebtedness of $223.2 million[262]. Tax and Interest Expenses - Income tax provision increased by $42.1 million or 73.9%, driven by an increase in worldwide income before income tax provision[241]. - Interest income increased by $42.2 million or 479.5%, attributed to higher interest income from increased cash deposits funded by convertible notes issuance[235]. - Interest expense increased by $18.8 million or 289.2%, primarily due to a $22.7 million or 2012.3% rise in interest related to the amendment and issuance of convertible notes[236]. - The company reported a significant increase in tariff expenses by $184.2 million or 1151.3% due to new trade policies impacting cost of sales[222].

Super Micro Computer ( NASDAQ:SMCI ) reported robust artificial intelligence (AI) growth in its fiscal second-quarter results on Tuesday after the markets closed, with revenue surging 123% year-over-year to $12.7 billion, exceeding estimates around $10.4 billion. ...

BTC crash today is part of a wider market move seen across global stocks and digital assets. Bitcoin dropped sharply during Asian trading hours as technology shares fell across major markets. Investor mood turned cautious after comments from US officials and ongoing pressure on high priced tech stocks. The sell off pushed Bitcoin to its lowest level since November 2024. Global equities also showed mixed trends as oil prices fell and precious metals moved in different directions. Market participants are now ...

Group 1 - The analyst team has a proven track record of outperforming across all market conditions, achieving an annualized return of almost 40% over the past decade with a long-only model portfolio return of over 23x [1] - The focus is on income-oriented investments, particularly in lower-risk firms that provide steady dividend payouts [1] - The company specializes in providing research in the energy, shipping, and offshore markets [1] Group 2 - The article serves as an update on Super Micro Computer, Inc. (SMCI), indicating prior coverage of the company [2] - The analyst has a historical focus on tech stocks but has expanded coverage to include offshore drilling, supply industry, and shipping [3] - The analyst has significant experience, having worked as an auditor for PricewaterhouseCoopers before transitioning to day trading [3]

4 February 2026 | 3:47AM EST Equity Research Super Micro Computer Inc. (SMCI): F2Q26 Review: Beat & raise on broad-based AI demand, though margins remain under pressure SMCI F2Q26 EPS of $0.69 beat (v. GSe/ FactSet consensus $0.50/$0.49) driven by revenue outperformance ($12.7 bn v. GSe/consensus $10.5/$10.4 bn and guidance for $10-11 bn). First, gross margins remain under pressure, but EBIT margins benefited from operating leverage. Gross margins in the quarter were slightly softer than expected (6.4% v. G ...

Market Overview - U.S. stocks ended lower, with notable declines in technology companies such as Advanced Micro Devices and Palantir, as investors expressed concerns over high valuations and the sustainability of the AI rally [1][2] - The S&P 500 declined by 0.51% to 6,882.72 points, while the Nasdaq fell by 1.51% to 22,904.58 points, contrasting with a 0.53% rise in the Dow Jones Industrial Average to 49,501.30 points [4] Company Performance - Advanced Micro Devices saw a significant drop of 17% after forecasting disappointing quarterly revenue, indicating challenges in competing with Nvidia [2] - Palantir's shares fell nearly 12%, reversing previous gains attributed to strong quarterly sales [2] - Super Micro Computer's shares surged by 13.8% following an increase in its annual revenue forecast due to sustained demand for AI-optimized servers [5] - Eli Lilly's shares rose about 10% after the company projected 2026 profits exceeding Wall Street expectations [5] Sector Performance - The S&P 500 value index gained for the fifth consecutive session, while the growth index declined, indicating a shift in investor sentiment towards less expensive companies [4] - Seven of the 11 S&P 500 sector indexes rose, with energy leading at a 2.25% increase, followed by a 1.8% gain in materials [4] Employment Data - The ADP national employment report indicated that U.S. private payrolls increased less than expected in January, with job losses in the professional and business services and manufacturing sectors [6]

Super Micro Computer (NASDAQ:SMCI), high-performance server and storage solutions maker, closed Wednesday at $33.76, up 13.78% as investors responded to a blowout fiscal Q2 driven by AI infrastructure demand and raised revenue guidance while continuing to weigh ongoing margin pressures and risk factors. Commentary pointed to “blockbuster” AI-server results and a higher full-year outlook as key drivers, and investors are watching how management executes on aggressive growth plans while stabilizing gross ma ...

Market Overview - Technology stocks continued to decline, impacting Wall Street, with the S&P 500 falling 0.5% for its fifth loss in six days, while the Dow Jones Industrial Average rose 260 points, or 0.5%, and the Nasdaq composite dropped 1.5% [1] - Despite more stocks rising than falling within the S&P 500, the decline in technology stocks weighed heavily on the index for a second consecutive day [1] Company Performance - Advanced Micro Devices (AMD) saw a significant drop of 17.3% despite reporting stronger-than-expected profits and a positive revenue forecast for early 2026, indicating investor concerns after a 100% stock price increase over the past year [2] - Uber Technologies' stock fell 5.1% after reporting quarterly results that missed analysts' expectations and providing a profit forecast below expectations, alongside the announcement of a new CFO [4] - Super Micro Computer's stock rose 13.8% after exceeding profit expectations for the latest quarter, benefiting from its focus on AI servers [5] - Eli Lilly's stock increased by 10.3% after surpassing profit expectations, driven by growth from its diabetes and weight loss products [5] - Match Group's stock climbed 5.9% following better-than-expected results and an increased dividend, attributing success to new user verification features [6] Retail Sector - Walmart's stock edged up by 0.2% after its market value surpassed $1 trillion for the first time, joining a select group of companies valued over $4 trillion [7] Commodity Market - Gold prices rose by 0.3% to settle at $4,950.80 per ounce after fluctuating significantly, while silver prices increased by 1.3% [8]

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market ...

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market ...