SMCI Stock: Super Micro Rises After Q2 Beat

Data center specialist Super Micro Computer (SMCI), better known as Supermicro, late Monday easily beat expectations for its fiscal second quarter. It also raised its sales guidance for the full year thanks to red-hot demand for AI computer systems. SMCI stock rose in extended trading.


The San Jose, Calif.-based company earned an adjusted $5.59 a share on sales of $3.66 billion in the quarter ended Dec. 31. Analysts polled by FactSet had expected Supermicro earnings of $5.05 a share on sales of $2.8 billion. On a year-over-year basis, Supermicro earnings surged 71% while sales rocketed 103%.

Supermicro preannounced better-than-expected results for the December quarter on Jan. 18. That news sent SMCI stock soaring 35.9% in the next trading session. SMCI stock hit a regular-session all-time high of 496.78 on Jan. 24.

For the current quarter, Supermicro predicted adjusted earnings of $5.61 a share on sales of $3.9 billion. That’s based on the midpoint of its guidance.

Analysts had been looking for earnings of $4.61 a share on sales of $2.91 billion in the March quarter. In the year-earlier period, Supermicro earned an adjusted $1.63 a share on sales of $1.28 billion.

SMCI Stock Rises On Beat-And-Raise Report

“We continued to demonstrate our market leadership in fiscal Q2,” Chief Executive Charles Liang said in a news release. “While we continue to win new partners, our current end customers continue to demand more (of) Supermicro’s optimized AI computer platforms and rack-scale Total IT Solutions.”

For its fiscal year ending June 30, Supermicro now expects revenue of $14.3 billion to $14.7 billion. It previously guided to sales of $10 billion to $11 billion.

The current midpoint of its sales outlook of $14.5 billion is well above Wall Street’s target of $11.3 billion. In its fiscal 2023, Supermicro reported sales of $7.1 billion.

In after-hours trading on the stock market today, SMCI stock jumped 9% to 540.50. During the regular session Monday, SMCI stock advanced 4.5% to close at 495.67.

Supermicro sales have gotten a lift from major cloud service providers investing in systems for generative artificial intelligence. The computer systems maker works closely with AI chip providers including Advanced Micro Devices (AMD), Intel (INTC) and Nvidia (NVDA).

SMCI stock is on the IBD 50 and Tech Leaders stock lists.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


Logitech’s New Chief Executive Targets Return To Growth

Arm Elbows Into New Arenas As Chip Designer Takes On AI, Auto, Cloud, Other Markets

Intel Stock Flashes Sell Signals After Chipmaker’s Outlook Badly Misses

See Stocks On The List Of Leaders Near A Buy Point

Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens

Leave a Comment