Super Micro Computer (SMCI) late Tuesday missed expectations with its preliminary results for its fiscal second quarter ended Dec. 31. It also slashed its sales outlook for the full fiscal 2025. However, it set a revenue target for fiscal 2026 that is much higher than current estimates. SMCI stock rose on the news.
The San Jose, Calif.-based company, better known as Supermicro, makes data center computers for artificial intelligence and other applications. The company is a total information technology systems provider encompassing servers, storage, networking and other gear, as well as support services. Supermicro is a key partner of AI chip leader Nvidia (NVDA).
↑
X
Will The Market Rise Or Fall In 2025? This Barometer May Tell.
Supermicro expects fiscal Q2 adjusted earnings of 59 cents a share on sales of $5.65 billion, based on the midpoint of its estimates. Analysts polled by FactSet were expecting earnings of 61 cents a share on sales of $5.77 billion in the December quarter. Supermicro’s preliminary results translate to year-over-year growth of 5% in earnings and 54% in revenue.
Supermicro also lowered its revenue guidance for fiscal 2025 to a range of $23.5 billion to $25 billion from its previous outlook for $26 billion to $30 billion. Analysts already were looking for $24.1 billion in fiscal 2025 sales.
However, in a press release, Chief Executive Charles Liang predicted fiscal 2026 revenue of $40 billion. Analysts were modeling $29.2 billion.
“With our leading direct-liquid cooling technology and over 30% of new data centers expected to adopt it in the next 12 months, Supermicro is well positioned to grow AI infrastructure design wins based on Nvidia Blackwell and more,” Liang said.
SMCI Stock Rises Late
In after-hours trading on the stock market today, SMCI stock climbed more than 3% to 40. During the regular session Tuesday, SMCI stock fell 9.5% to close at 38.61.
Supermicro stock was trading at record highs until early 2024 when it disclosed accounting issues that have delayed the release of its quarterly and annual reports. It notched an all-time high of 122.90 in March 2024.
Supermicro has until Feb. 25 to regain compliance with Nasdaq’s listing requirements. By then, it must file its annual report on Form 10-K for the fiscal year ended June 30, its quarterly report on Form 10-Q for the period ended Sept. 30, and any other required filings to stay current with the U.S. Securities and Exchange Commission.
On Monday, CFRA Research analyst Shreya Gheewala upgraded SMCI stock to buy from hold. She also raised her 12-month price target to 48 from 39.
“However, there are critical risks,” Gheewala said in a client note. “Upcoming results could require financial restatements, potential customer erosion from reputational damage, and December rumors of privatization add uncertainty. While strong guidance could offset concerns, this high-risk/reward opportunity requires careful investor consideration.”
On Feb. 5, Supermicro announced that it was at full production availability for Nvidia’s Blackwell rack-scale AI computing systems.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Astera Labs Stock Falls As Investors Nitpick Q4 Report
Apple Reportedly Picks Alibaba As China AI Partner
See Stocks On The List Of Leaders Near A Buy Point
Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens
