2024-04-19 12:58:55 ET
Super Micro Computer Inc (NASDAQ: SMCI) is down close to 20% on Friday after revealing the date on which it plans on reporting its financial results for the third quarter.
What’s happening with Supermicro stock today?
The artificial intelligence servers company will publish its quarterly earnings report on April 30 th .
Supermicro stock is down sharply at writing because investors may have read a lack of guidance this morning as in fact a “negative”, as per Aaron Rakers – a Wells Fargo analyst.
The investment firm currently rates $SMCI at “equal weight”.
It’s worth mentioning, however, that Super Micro Computer is expected to report a significant increase in its per-share earnings to $5.67 in Q3 related primarily to a continued focus on AI. The Nasdaq-listed firm earned $1.42 per share in the same quarter last year.
Watch here: https://www.youtube.com/embed/vnpwB8poXII?feature=oembedIs $SMCI worth buying on the weakness?
The recent hit to Supermicro stock may be related to its semiconductor peer ASML that topped Street estimates for its first quarter this week but issued a rather muted guidance for the future.
ASML now forecasts its sales to come in at $6.33 billion in Q2 versus analysts at $6.89 billion and $7.72 billion that it reported for the same quarter last year.
Still, the weakness in $SMCI may be an opportunity to buy a quality name at a deep discount considering Aaron Rakers of Wells Fargo continues to see upside in the AI stock to $960.
That suggests a more than 25% upside in Supermicro shares from here.
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