Super Micro Computer surged 25%, boosted by an increase in gross margin outlook

robot
Abstract generation in progress

Deep Tide TechFlow news: On July 22, Wednesday, the stock price of Super Micro Computer (SMCI.O) surged 25%. Previously, the AI server company had forecast that its gross margin for the fourth fiscal quarter would reach 15% to 17%, nearly twice its earlier target of 8.2% to 8.4%. A JPMorgan analyst said that this unexpected gross margin expansion suggests that Super Micro Computer’s earnings per share for the fourth fiscal quarter could be at least 80% higher than current Wall Street expectations.

However, in the coming weeks, investors may question the sustainability of such high gross margins. The JPMorgan analyst noted that the company received more than $60 billion in new orders this fiscal quarter, exceeding its own expectations—an indication of strong demand, which is also positive for competitors Dell and Inspur. The stocks of both companies rose as well. (Jin10)

SMCI21.67%
HPE3.44%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned