Home Editor's Picks This is when Super Micro Computer could preannounce results: Wells Fargo

This is when Super Micro Computer could preannounce results: Wells Fargo

by

Super Micro Computer (NASDAQ:SMCI) could preannounce its Q2 earnings results late next week, Wells Fargo analysts said in a Wednesday note.

Historically, the AI server maker has either preannounced or published its earnings release date on average 19 days post-quarter close, with a range of 18 to 24 days.

Per the note, investor sentiment reflects expectations of a positive preannouncement. Analysts attribute this to signs of large-scale GPU cluster deployments by notable entities such as xAI, Meta (NASDAQ:META), and Tesla (NASDAQ:TSLA), along with the company’s emphasis on its direct-liquid cooling (DLC) rack-scale offerings.

Wells Fargo maintains an Equal Weight rating on SMCI, with a price target of $890. They noted that SMCI shares have experienced significant volatility surrounding previous earnings releases.

“As a reminder, shares of SMCI sold off 23% on 4/19 following the announced F3Q24 earnings release date without a positive pre-announcement,” analysts wrote. “SMCI shares pulled back 14% post the 4/30 F3Q24 print amid increased competitive / margin concerns,” they added.

Key questions for the upcoming earnings season include confidence in achieving a gross margin (GM) of over 14%, especially as the competitive landscape intensifies with NVIDIA (NASDAQ:NVDA)’s Blackwell cycle.

Analysts are also watching for updates on SMCI’s manufacturing capacity for DLC racks and the potential need for additional capital raises due to inventory expansion and purchase commitments.

Moreover, analysts will closely monitor SMCI’s participation in NVIDIA’s (NVDA) new GB200 NVL36 / 72 rack-scale platform as well as any comments on the company’s working capital needs and possible manufacturing expansion.

Related News