Super Micro Computer's mixed Q4 FY2024 report has triggered a double-digit sell-off in its stock, exacerbating a painful drawdown. While SMCI's bottom-line performance is disappointing, current and forward revenue growth rates are exhilarating. In recent weeks, Super Micro's long-term risk/reward has improved significantly. Given SMCI's 5-year expected CAGR return now exceeds my investment hurdle rate of 15%, I rate Super Micro a "Buy".
For several months in 2024, the server company Super Micro Computer (NASDAQ: SMCI) was the absolute star of the stock market as it, between January and March, managed a rise from about $285 to above $1,000.
Super Micro Computer stock was falling amid an increasingly volatile environment for artificial-intelligence stocks.
Super Micro Computer, Inc. SMCI, which manufactures servers for artificial intelligence applications and processes, reported its fiscal fourth-quarter results Tuesday after the market closed and its stock reacted to the report with a sharp move to the downside.
Super Micro Computer shares tumbled 12.3% in premarket trading on Wednesday as concerns over the high cost of producing AI server chips weighing on its profit forecast, eclipsing upbeat sales forecasts.
The demand for AI servers continues to grow.
Shares of Super Micro Computer Inc (NASDAQ:SMCI) ended a bloody after-hours session down 13% after the company reported financial fourth-quarter earnings below analyst expectations. The company also announced a 10-for-1 stock split.
Super Micro Computer (SMCI) shares slumped more than 13% in extended trading on Tuesday after the server company reported quarterly earnings that fell short of expectations, issued a light profit forecast and disclosed a surprise drop in adjusted gross margin, as the cost of transitioning to more expensive artificial intelligence chips weighed on the bottom line. The company also announced a 10-for-1 stock split that takes effect from Oct. 1.
Supermicro's performance in recent years has fueled blistering stock price gains. Management announced a 10-for-1 stock split, which will take place in late September.
Super Micro Computer Inc. is still seeing fantastic revenue growth, thanks to the AI boom, and will now mirror Nvidia Corp. with its own stock split — but investors are clearly starting to worry about margins and competition.
Super Micro Computer (SMCI) reported fiscal fourth-quarter earnings that missed analysts' estimates, sending shares lower in extended trading Tuesday. The company also announced a 10-for-1 stock split.
Super Micro Computer (SMCI) came out with quarterly earnings of $6.25 per share, missing the Zacks Consensus Estimate of $8.03 per share. This compares to earnings of $3.51 per share a year ago.