Super Micro Surges 25%, Boosted by Raised Gross Margin Expectations
7x24h News
Super Micro Surges 25%, Boosted by Raised Gross Margin Expectations
On Wednesday, Super Micro Computer (SMCI.O) shares surged 25% after the AI server company projected that gross margin for the fourth fiscal quarter would reach 15% to 17%, nearly double its previous target of 8.2%-8.4%. JPMorgan analysts stated that this unexpected gross margin expansion implies Super Micro Computer's earnings per share for the fourth fiscal quarter are expected to be at least 80% higher than current Wall Street expectations. However, investors may question the sustainability of this high gross margin in the coming weeks. JPMorgan analysts pointed out that the company secured over $60 billion in new orders this fiscal quarter, exceeding its own expectations, which is a signal of strong demand and is also positive for competitors Dell and HPE. The stock prices of both companies rose accordingly. (Jin10)
Navigating Web3 tides with focused insightsTechFlow news, Wednesday, July 22, Super Micro Computer (SMCI.O) shares surged 25%, after the AI server company projected that gross margin for the fourth fiscal quarter would reach 15% to 17%, nearly double its previous target of 8.2%-8.4%. JPMorgan analysts stated that this unexpected gross margin expansion means Super Micro Computer's earnings per share for the fourth fiscal quarter are expected to be at least 80% higher than current Wall Street expectations.
However, investors may question the sustainability of such high gross margins in the coming weeks. JPMorgan analysts pointed out that the company secured over $60 billion in new orders this fiscal quarter, exceeding its own expectations, which is a signal of strong demand and is also positive for competitors Dell and Hewlett Packard Enterprise. The share prices of both companies also rose accordingly. (Jin10)
