Technology
Friday, January 19th, 2024 6:54 pm EDT
Key Points
- Record-Breaking Stock Surge: Super Micro Computer, a standout performer among tech stocks in recent years, witnessed a surge of more than 30% to achieve a record high. This followed the release of preliminary financial results that exceeded estimates. The company’s fiscal second-quarter revenue, ending on December 31, is projected to be between $3.6 billion and $3.65 billion, surpassing earlier guidance of $2.7 billion to $2.9 billion. Adjusted earnings per share are expected to range from $5.40 to $5.55, exceeding previous guidance of $4.40 to $4.48.
- Exceptional Stock Performance: The robust financial figures add to the impressive stock performance of Super Micro, which experienced a 246% increase in its stock value last year and an 87% surge in 2022. Since the close of 2018, the stock has surged almost 30-fold, translating to significant returns for investors who bet on the company five years ago.
- Dependence on Nvidia’s GPUs: Super Micro, known for manufacturing computers used as servers for various applications, particularly artificial intelligence algorithms, has its sales closely tied to Nvidia’s allocation of graphics processing units (GPUs). Analysts note that the success of Super Micro is “mostly dependent” on Nvidia’s GPUs, which are crucial in the current AI boom. Nvidia experienced a substantial revenue increase in the third quarter, driven by high demand from cloud and internet companies for its GPUs, with a similar trend expected in the fourth quarter. The upcoming earnings report is eagerly anticipated for a more detailed assessment of Super Micro’s outlook and future implications.
Super Micro Computer, a notable tech stock, experienced a remarkable surge, soaring over 30% to reach a record high after the data center hardware manufacturer announced preliminary financial results that exceeded expectations. The company anticipates fiscal second-quarter revenue, concluding on December 31, to be between $3.6 billion and $3.65 billion, surpassing prior guidance of $2.7 billion to $2.9 billion. Analysts had projected an average revenue of $3.06 billion. Adjusted earnings per share are expected to be in the range of $5.40 to $5.55, compared to earlier guidance of $4.40 to $4.48. This positive performance follows a 246% increase in Super Micro’s stock last year and an 87% jump in 2022, contributing to its almost 30-fold surge since the end of 2018. The company, which manufactures computers used as servers for various applications, including artificial intelligence algorithms, has seen its sales linked to Nvidia’s allocation of graphics processing units (GPUs). Nvidia experienced a significant revenue boost in the third quarter due to heightened demand for its GPUs from cloud and internet companies, with analysts expecting a similar trend in the fourth quarter. While Super Micro’s strong performance is attributed to its reliance on Nvidia’s GPUs, analysts remain cautious, emphasizing the need for details in the upcoming earnings report to better assess the implications for the company’s outlook. Super Micro’s shares reached $411.14, marking a substantial increase and surpassing its previous record close of $353.29 in August of the previous year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/19/super-micro-smci-jumps-on-q2-preliminary-earnings.html
