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SAN JOSE, Calif. - Super Micro Computer, Inc. (NASDAQ:SMCI), a global IT solution provider and prominent player in the Technology Hardware industry, has released preliminary financial results for its second quarter of fiscal year 2025, which ended on December 31, 2024. The company expects to report net sales between $5.6 billion and $5.7 billion, indicating a significant 54% year-over-year growth at the midpoint. This continues the company’s impressive growth trajectory, with revenue growing 109.77% over the last twelve months. According to InvestingPro analysis, the stock is currently trading above its Fair Value, following a remarkable 46.26% surge in the past week.
The anticipated GAAP and non-GAAP gross margins are reported to be between 11.8% and 11.9%, consistent with the company’s historical gross profit margin of 14.13%. GAAP diluted net income per common share is projected to be in the range of $0.50 to $0.52, remaining flat compared to the previous year. However, non-GAAP diluted net income per common share is estimated to show a modest increase, ranging from $0.58 to $0.60, reflecting a 5% year-over-year growth. InvestingPro subscribers have access to 16+ additional investment tips and comprehensive financial metrics that provide deeper insights into SMCI’s valuation and growth potential.
Supermicro also expects to report total cash and cash equivalents of approximately $1.4 billion and total debt of around $1.9 billion, with bank debt comprising approximately $0.2 billion and convertible notes of about $1.7 billion, as of December 31, 2024. The company maintains a healthy current ratio of 3.77, indicating strong liquidity with assets well exceeding short-term obligations.
The company’s CEO, Charles Liang, emphasized Supermicro’s strategic positioning with its direct-liquid cooling technology and anticipated growth in AI infrastructure designs. Liang projects a solid foundation for the company’s future, setting revenue targets for fiscal year 2025 between $23.5 billion to $25 billion and aiming for $40 billion in fiscal year 2026. With a PEG ratio of 0.23, SMCI trades at an attractive valuation relative to its growth prospects. For detailed analysis of SMCI’s growth trajectory and AI market positioning, access the comprehensive Pro Research Report available exclusively on InvestingPro.
Looking ahead, Supermicro forecasts net sales for the third quarter of fiscal year 2025, ending March 31, 2025, to be in the range of $5.0 billion to $6.0 billion. The company expects GAAP net income per diluted share to be between $0.36 and $0.53, and non-GAAP net income per diluted share to be between $0.46 and $0.62.
The financial information presented is preliminary and subject to change. Final financial results for this period may differ from those reported in this release due to ongoing financial closing procedures and potential adjustments.
Supermicro is working towards filing its overdue annual and quarterly reports and expects to meet the filing deadline by February 25, 2025. The company has also announced a private placement of $700 million of new 2.25% Convertible Senior Notes due 2028 and an amendment to existing notes.
In response to a short seller report published in August 2024, Supermicro has received subpoenas from the Department of Justice and the Securities and Exchange Commission. The company is cooperating with the document requests and contends that the securities litigation complaints and derivative suits filed against it are without merit.
This news is based on a press release statement from Super Micro Computer, Inc.
In other recent news, Super Micro Computer, Inc. has been in the spotlight due to a variety of developments. The company’s earnings report is highly anticipated, with expectations for sales around $5.9 billion. Analyst Matt Bryson from Wedbush has expressed concerns about the company’s ability to meet sales expectations and comply with Nasdaq’s filing requirements.
In parallel, Super Micro has begun full production of its NVIDIA (NASDAQ:NVDA) Blackwell Rack-Scale Solutions. The company’s CEO, Charles Liang, underscored the significance of these solutions in meeting the growing demands for AI workloads.
Super Micro also announced a conference call and webcast for its second quarter fiscal 2025 business update. This move comes after the company’s appointment of BDO USA, P.C. as its new independent auditor in November 2024.
Despite concerns raised by Cantor analyst C.J. Muse about the legitimacy of DeepSeek’s AI model claims, Cantor’s analysis suggests that the advancements implied by DeepSeek’s model are a bullish sign for the AI industry.
Lastly, Loop Capital Markets increased the price target for Super Micro Computer shares from $35.00 to $40.00, while reaffirming a Buy rating on the stock. The firm’s analyst cited Super Micro’s role in a critical industry and the potential impact of special situation catalysts as reasons for the optimistic outlook.
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