Supermicro TOPS S & P 500 supplies fuel by increasing AI demand.
AI stocks have completed this week with the biggest profit of 27%from S & P 500.
It was a rough state Super microcomputer (NASDAQ: SMCI) Stocks have ups and downs. Ultimately, however, AI stocks have achieved the highest results in S & P 500.
The Super Micro Computer, also called Supermicro, has risen 27% this week, leading all shares of S & P 500. It rose 9% on Friday and ended a week at $ 46 per share.
There’s a lot of work in this company, so let’s look at the catalyst.
Returning to the track
In addition to the many fluctuations of Supermicro, a major manufacturer of AI support server for data centers, it has been crazy for the last few months.
As we wrote before, Supermicro had a problem with internal control and governance last year, which did not submit an annual report for fiscal year by June 30, 2024.
The internal investigation continued and the company ultimately hired a new auditor, BDO. However, the survey failed to submit a 1Q earnings report in the quarter, which ended on September 30. As a result, NASDAQ threatened to resolve Supermicro in exchange unless the import report was submitted.
NASDAQ has agreed to extend the deadline to submit a report when the internal investigation proceeds. Ultimately, in December, the company found that there was no evidence of fraud or illegal acts. In the meantime, stock prices have fallen by about 46% over the last 12 months.
Therefore, SUPERMICRO is reintroducing the situation by checking the launch of the 2024 annual report on February 25.
However, this week’s volatility was the launch of preliminary income in the second quarter, which included mixed results.
Mixed Q2 income and $ 700 million liquidity
In the second quarter of the second quarter, the income was strong, but it was under the analyst’s estimates.
SUPERMICRO will increase 54% year -on -year in the mid -term in order to reach $ 5.6 billion to $ 5.7 billion in quarter. But it was slightly lower than the estimated $ 5.8 billion. In addition, GAAP income requires 50 cents to 52 cents per share, which will be semen every year. The adjusted income increases by 5% from 58 cents per share to 60 cents, but is lower than the estimated 61 cents per share.
Therefore, since the release on February 11, stocks decreased by about 9%, but more news emerged.
On February 12, Supermicro announced that it will issue $ 700 million convertible notes, which are personally negotiated with the agency buyers scheduled for 2028. The new convertible memo is about 50%of the initial conversion price of about $ 61.06 per share of the company’s shares compared to $ 40.70 per February 12.The company uses additional liquidity for general company purposes and grows to grow and business expansion. It will support funds.
More importantly, investors showed that institutional buyers have the ability to continue to grow beyond the confidence and regulation of Supermicro.
AI growth engine
But in the short term, import profit seems to be mute, as Supermicro summarizes in a preliminary import release.
By March 31, the outlook for the third quarter of the accounting requires net sales from $ 5 billion to $ 6 billion, which is lower than the second quarter of predictions in the middle. In addition, GAAP revenues are subject to 36 cents per share to 53 cents and adjustment income is fixed from 46 cents to 62 cents. These two estimates are under the Q2 prediction at the middle point.
During the fiscal year in 2025, the company lowered its sales guidelines from $ 26 billion to $ 30 billion to $ 25 billion.
But investors look like a long -term opportunity to get this stock in a cheap place. Currently, P/E is 21 and P/E has 12 in the future, so it is a relative deal among AI stocks.
And it is well arranged for growing long -term growth. The company expects that the demand for NVIDIA’s new Blackwell Chips, which Supermicro uses in the data center server, will increase.
Charles Liang said, “With more than 30% of new data centers that are expected to adopt this within 12 months of DLC (Direct-Requid Cooling) technology, Supermicro can grow AI infrastructure based on NVIDIA BLACKWELL. there is. The founder of Supermicro, president and CEO said.
Liang is a data center infrastructure provider that will expand Supermicro’s leadership.
Investors should not expect a short -term growth in Supermicro stocks because the company may be super simple even after the launch of the expired report. However, investors are banking for long -term growth and buy low.
