Super Micro CEO Charles Liang.
Source: Super Micro
super microcomputerThe company, one of the best-performing tech stocks in years, soared 36% to a record on Friday after the data center hardware maker reported better-than-expected preliminary results.
company Said Sales for the fiscal second quarter ending Dec. 31 are expected to be between $3.6 billion and $3.65 billion, significantly higher than previously expected sales of $2.7 billion to $2.9 billion. Analysts’ average revenue estimate was $3.06 billion, according to LSEG (formerly Refinitiv).
Adjusted earnings were $5.40 to $5.55 per share, exceeding previous expectations of $4.40 to $4.48 per share.
The increase follows Supermicro’s stock price, which rose 246% last year and 87% in 2022. The stock price has increased almost 30 times since the end of 2018. So if you had bet $10 million on the company five years ago, you ended up with a stock worth almost $300 million today.
Super Micro manufactures and sells computers to businesses that use them as servers for applications such as websites, data storage, and artificial intelligence algorithms. Wedbush Securities analysts said in a note Friday that Supermicro’s sales are “primarily dependent on.” Nvidia’s Graphics processing unit allocation is at the heart of the AI boom.
A surge in demand from cloud and internet companies for Nvidia’s GPUs led to third-quarter revenue more than tripling from a year earlier. Analysts expect a similar increase in the fourth quarter.
Based on the midpoint of Supermicro’s guidance range, the 30-year-old company expects December quarter revenue to be double that of a year ago. Supermicro’s full earnings report is expected to be released later this month.
Wedbush analysts maintained a neutral rating on the stock, saying, “The magnitude of the good news really depends on the details.” “We would like to wait for SMCI’s report and earnings release to add additional color before reconsidering our future assumptions and the impact on our outlook.”
Supermicro shares rose to $423.36 as of Friday’s close, giving the company a market capitalization of more than $23 billion. The previous highest closing price was $353.29 in August last year.
clock: CNBC interview with Super Micro CEO Charles Liang
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