Super Micro shares soar 36% to record on uplifting preliminary results

Sunday, 21 January 2024

 Super Micro shares reached an all-time high, soaring 36% on Friday after reporting better-than-expected revenue in a preliminary earnings report.

The company's revenue for the fiscal second quarter (ending Dec. 31) is projected to be between $3.6 billion and $3.65 billion, exceeding analyst expectations of $3.06 billion.

Adjusted earnings for the same quarter are estimated to be between $5.40 and $5.55 per share, surpassing previous guidance of $4.40 to $4.48 per share.

 Super Micro's stock witnessed a remarkable 246% increase in the previous year and an 87% jump in 2022.

 Since the end of 2018, Super Micro's stock has climbed almost 30-fold, resulting in substantial gains for early investors.

The company manufactures computers used as servers for websites, data storage, and AI applications.

Super Micro's sales are noted to be "mostly dependent" on Nvidia's allocation of graphics processing units (GPUs), central to the AI boom.

Nvidia's revenue tripled in the third quarter, driven by high demand from cloud and internet companies for its GPUs.

Analysts anticipate a similar increase in Nvidia's revenue for the fourth quarter.

 Super Micro's market cap surpassed $23 billion, reaching a closing stock price of $423.36, a new record high.