Supermicro stock continues to soar; is there more upside?

Published 19/02/2025, 18:20
© Reuters.

Investing.com -- Shares of Supermicro (NASDAQ:SMCI) surged 9.2% today, marking a significant uptrend for the sixth consecutive day following the company’s optimistic revenue guidance for FY 2026, announced on February 11th. The stock has seen an impressive 83% increase since the beginning of the year.

The company’s forecast for FY 2026 projects a revenue of $40 billion, which represents a potential 70% jump from its fiscal year 2025 figures. This robust guidance has surpassed analyst expectations, and SMCI CEO Charles Liang has suggested that even this forecast might be "conservative."

Supermicro’s bullish outlook is partly attributed to the commencement of the NVIDIA (NASDAQ:NVDA) Blackwell ramp. On February 5th, the company announced the full production availability of its AI data center Building Block Solutions, powered by the NVIDIA Blackwell platform. This comprehensive portfolio, including a range of air-cooled and liquid-cooled systems, aims to streamline the deployment of Blackwell solutions with its advanced thermal designs and extensive data center management software suite.

Despite the positive revenue guidance and the launch of new products, Supermicro has faced challenges, including accusations from short-sellers, governance concerns that led to the resignation of its previous auditor, and delays in updating its financial statements. The company is actively working on filing its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and its Quarterly Report on Form 10-Q for the period ended September 30, 2024, with a target date of February 25, 2025. Supermicro has also filed a Form 12b-25 for its second fiscal quarter and anticipates filing its Quarterly Report for the period ended December 31, 2024, by the same date.

Investors appear to be focusing on the positive future revenue prospects and product developments, overlooking the company’s recent governance and financial reporting issues. The stock’s substantial gain reflects a market that is responsive to Supermicro’s strategic initiatives and potential growth in the AI data center market.

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