5 Analysts Discussing SMCI Stock After Earnings ReleaseBy Investing.com

Super Micro Computer Corp. (NASDAQ: ) shares plummeted after the earnings report, attracting the attention of analysts and investors.

As the market digests the financial results and guidance provided by the company, five analysts offer their insights and views on SMCI stock movement, assess key metrics and provide insights into the company's future growth prospects.

Supermicro first quarter results details

SMCI reported third-quarter earnings of $6.65 per share, $0.85 above analysts' expectations of $5.80. However, revenue for the quarter was $3.85 billion, missing the consensus estimate of $3.99 billion.

Looking ahead, the company expects fourth-quarter 2024 earnings per share to be in a range of $7.62 to $8.42, compared with consensus expectations of $7.14; revenue for the quarter is expected to be between $5.1 billion and $5.5 billion, compared with consensus expectations of $48.9 One hundred million U.S. dollars.

For the full year, SMCI expects earnings per share of US$23.29 to US$24.09, compared with market expectations of US$21.99; revenue of US$14.3 billion to US$14.7 billion, compared with market expectations of US$14.6 billion.

Analyst Forecasts for SMCI Stock Outlook

Following the report, Barclays analysts noted the strong guidance for the June quarter and raised their price target on SMCI stock to $1,000 from $961 per share. The bank said SMCI issued strong revenue guidance for the June quarter, consistent with their checks.

They also said they expect quarter-on-quarter growth in the September and December quarters due to improved supply and a boost from artificial intelligence.

“Even taking into account the impending product transition, hopper demand remains much stronger than expected,” said Barclays, which maintained an overweight rating on the stock.

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Wells Fargo analysts maintained an equal-weight rating on SMCI and lowered their price target on the stock to $890 from $960. The bank believes the stock sell-off reflects increased valuation sensitivity as gross margin reviews take center stage.

Rosenblatt reiterated SMCI's Buy rating and $1,300 target on the stock. “Supermicro experienced above-the-line sales in the March quarter due to component constraints, largely related to the transition to faster and larger liquid-cooled rack-scale AI,” the company said. In our models , General Motors Co.'s profit rose 15.6%, better than expected.

Rosenblatt calls SMCI the “Switzerland of AI,” explaining that his bullish view on SMCI stock is based on the company's AI dynamics, which are “the company's building block architecture, green computing, rapid The sweet spot of broad platform deployment and must-have artificial intelligence dynamics.” Liquid cooling capability. “

Loop Capital analysts maintained a buy rating and $1,500 price target on SMCI. The company said SMCI's June quarter guidance and subsequent quarter-over-quarter revenue growth commentary were fully consistent with their thesis.

“At the heart of our thesis is our net bullish stance (LT) on the Gen AI server industry and SMCI's role as a growing leader in complexity and scale requirements (we note that SMCI discussed on the EPS conference call that it is becoming a continued share growers),” Loop Capital wrote.

KeyBanc Capital reiterated its Sector Weight rating on SMCI stock. “Supermicro hinted that first-quarter seasonality may be reduced, which brought about a record strong backlog, which led us to raise our forecasts,” KeyBanc said. “That said, even in line with the new, higher forecast , we also believe SMCI stock offers balanced risk/reward at current levels.”

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