Key Stats for Super Micro Computer Stock
- Pre-market price change for Super Micro Computer stock: 15%
- $SMCI Share Price as of May. 5: $28
- 52-Week High: $62
- $SMCI Stock Price Target: $33
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Super Micro Computer (SMCI) stock is surging in pre-market trading after the company posted earnings that crushed Wall Street expectations, even though revenue fell short.
- Adjusted EPS came in at $0.84, well above the $0.62 expected by analysts.
- Revenue was $10.24 billion, up 123% year over year, but missed the $12.33 billion estimate.
- The shortfall came down to timing. CEO Charles Liang explained that several customers weren’t yet set up with the power and networking their data centers needed. That revenue just shifted to future quarters.
- Gross margins also recovered sharply. They came in at 10.1% for Q3, up from a painful 6.4% the prior quarter. That 58% improvement was driven by a better product mix, fewer rush-order costs, and lower tariff headwinds.
The guidance is what really moved Super Micro Computer stock.
- For Q4, the company is targeting $11 billion to $12.5 billion in revenue and $0.65 to $0.79 in adjusted EPS.
- Both figures beat analysts’ expectations.
- For the full fiscal year, management is targeting up to $40.4 billion in revenue.
There’s an ongoing legal overhang worth noting.
- A U.S. Department of Justice indictment earlier this year named individuals connected to the alleged diversion of Nvidia-powered servers to China.
- The indictment did not name Super Micro, but the company said one defendant was a co-founder and executive, another was a manager, and the third was a contractor.
- The co-founder and executive described in the indictment no longer has any relationship with the company and has left the board.
- Executives said they don’t expect to restate earnings, and Liang was direct on the call: “Most customers are solidly committed to and growing business with Super Micro.”
Supply constraints remain a challenge. Memory prices have spiked, and there are shortages of Nvidia GPUs and Intel processors.
Super Micro Computer stock has navigated this by diversifying its customer base and expanding its Data Center Building Block Solutions business, which is growing fast and carries significantly higher margins than standard server hardware.
See analysts’ growth forecasts and price targets for Super Micro Computer stock (It’s free) >>>
What the Market Is Telling Us About Super Micro Computer Stock
Super Micro Computer stock has been under pressure all year, down about 10% while the S&P 500 was marginally up. Tonight’s print changes that narrative, at least temporarily.
The combination of strong EPS, better margins, and guidance above consensus gives investors something real to work with.
The legal issues still need to be resolved, but the business momentum is clearly intact.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Super Micro Computer Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
