Core Insights - Super Micro Computer (Supermicro) has experienced significant growth due to rising demand for data center servers driven by the AI trend, generating over $21 billion in sales over the past four quarters, compared to less than $6 billion a few years ago [1] - The company is expected to continue growing as spending on AI hardware remains strong, with a current market cap below $20 billion, making it an attractive option for AI investors [2] - However, Supermicro's gross profit margin is projected to be around 7.5% this year, down from more than 15% in 2022, which poses a challenge for profitability [4][5] Financial Metrics - Nearly 93% of Supermicro's revenues are allocated to cover the cost of goods sold, leaving little for overhead and operating expenses, indicating a need for high sales volume to achieve meaningful profitability [5] - The low gross margin suggests that even with significant top-line growth, the bottom line may not improve substantially [6] - Supermicro's forward price-to-earnings multiple is less than 17, which may appear attractive, but this is contingent on estimated profits and could rise if AI server spending slows or if margins do not improve [7]

Core Insights - Super Micro Computer shares fell 15% in extended trading after disappointing fiscal fourth-quarter results and weak earnings guidance [1] - The company reported a 7.5% increase in revenue for the quarter ending June 30, 2023 [1] Financial Performance - For the current quarter, Super Micro expects adjusted earnings per share between $0.40 and $0.52, with revenue projected at $6 billion to $7 billion, while analysts anticipated $0.59 per share and $6.6 billion in revenue [2] - The company reported adjusted earnings per share of $0.41, which was below the expected $0.44, and revenue of $5.76 billion, also below the expected $5.89 billion [4] Future Outlook - For the fiscal year 2026, Super Micro anticipates at least $33 billion in revenue, exceeding the LSEG consensus of $29.94 billion [2] - Demand for Super Micro's data center servers, particularly those equipped with Nvidia technology for AI workloads, surged in 2023 but has since slowed [3] Market Performance - As of the latest close, Super Micro shares have increased approximately 88% in 2025, significantly outperforming the S&P 500 index, which gained 7% [3] - The company managed to avoid delisting from Nasdaq despite delays in quarterly financial filings and the departure of its auditor [3]

Core Viewpoint - The current market downturn presents buying opportunities for investors in tech stocks, particularly ASML, TSMC, and Supermicro, despite the challenges posed by tariffs and geopolitical tensions [1][2]. Group 1: ASML - ASML is the leading producer of lithography systems essential for chip manufacturing, particularly the only supplier of extreme ultraviolet (EUV) systems [3][4]. - The stock has declined nearly 40% over the past year due to export curbs and tariffs, but the exclusion of semiconductors from tariffs and growth in the AI market are expected to support its EUV business [4][5]. - Analysts project ASML's revenue and earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 12% and 22% from 2024 to 2027, respectively, making its stock appear historically cheap at 20 times next year's earnings [5][6]. Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the largest contract chipmaker globally, producing chips for major companies like Apple and Nvidia, with operations in multiple countries [7]. - The stock has seen a 3% increase over the past year but has dropped 27% year to date due to tariffs and geopolitical tensions, although a $165 billion investment in U.S. fabs over the next four years may mitigate these impacts [8][9]. - Analysts expect TSMC's revenue and EPS to grow at a CAGR of 22% and 24% from 2024 to 2027, driven largely by the AI market expansion, with the stock trading at 13 times next year's earnings [9]. Group 3: Supermicro - Supermicro specializes in building servers for data centers, focusing on dedicated AI servers, and has a strong partnership with Nvidia for GPU access [10][11]. - The stock has plummeted nearly 70% over the past year due to various setbacks, including allegations of inflated revenue and regulatory scrutiny, but has recently made improvements by hiring a new auditor and submitting its 10-K filing [11][12]. - Analysts forecast Supermicro's revenue and EPS to grow at a CAGR of 38% and 22% from 2024 to 2027, respectively, with the stock trading at 9 times next year's earnings, indicating potential for a higher valuation if the company stabilizes and expands its U.S. manufacturing [12].