Super Microcomputer (SMCI) stock rose further ahead of Friday's closing bell, rising more than 35% after the company raised its revenue and profit guidance for the second quarter of fiscal 2024. Yahoo Finance's Josh Lipton and Jared Breichle monitor supermicrocomputers and analyze new earnings forecasts. Micro stock price and annual growth rate following AI trends.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor's note: This article was written by luke carberry morgan.
video transcript
Josh Lipton: Now, let's check out some trend tickers in today's trade. Here we count down to the closing bell. Let's start with Supermicro Computer's stock price. Shares rose today after the company raised its second-quarter earnings estimates. The company now expects to report revenue of more than $3.6 billion. This was significantly higher than the previous estimate of approximately $2.9 billion.
Jared, I made a pretty good profit on today's trade. These are preliminary financial results, and investors clearly like what they see above expectations. The computer hardware maker said it expects sales to beat previous expectations. Now they're saying preliminary adjusted EPS was 540 to 555, consensus, consensus was closer to 455.
Jared Breichle: Yeah. Well, another bullish victory for the AI industry here. If there's anything negative, it's that if you calculate the gross margin for the updated EPS guidance, it may actually be down. However, this is a company that is experiencing incredible growth. Take a look at last year's graph for Wi-Fi Interactive here.
As you can see, we've been consolidating here since last August, and we broke out in just one day. Huge upwards. And given the length of this integration, you have to think there's more to come. If you look at the last three years, this is a company that really took off in his year of AI, and that's the story there. Mr. Barclays, let me quote you for a moment. They rate the stock's price target as Overweight.
They increased from 335 to 396, and Supermicro is likely to ship 9,000 AI servers to help businesses in the December quarter, building computers equipped with these chips that perform all AI work. Possibly, and says this is thanks to an improved supply of GPU graphics processing units. Strong demand for AI. They expect full-year 2024 guidance to increase further when the company reports its results at the end of the month. It's very hard to find anything negative here, but maybe there's a little about the gross profit department.
Josh Lipton: Yeah. So there may be more technical suggestions–
Jared Breichle: Well, you're technically strong.
Josh Lipton: Technically strong. Jared, the analysts have seen this commentary and like the name. In other words, it is already showing good performance, with 10 buys, 1 hold, and 1 sell.
