Data center infrastructure company Super Micro (SMCI) will report its fiscal first quarter earnings after the bell on Tuesday as the AI trade attempts a comeback following sharp declines driven by renewed fears of an AI bubble.
Super Micro stock fell a staggering 27% over the last month after Gartner issued a report saying that 80% of neocloud companies would cease operations by 2030 due to a lack of a return on invested capital.
Neoclouds CoreWeave (CRWV) and Nebius (NBIS) plunged on the news and are down 40% and 37%, respectively, in the last month. CoreWeave is a Super Micro customer.
Super Micro stock has had a rough year, plummeting 38% over the last 12 months on questions about its profitability.
31.43 +0.98 (+3.24%)
As of 3:57:01 PM EST. Market Open.
For the quarter, Wall Street is projecting earnings per share of $1.06 on revenue of $14.98 billion, according to Bloomberg consensus estimates.
That would amount to a 203% year-over-year jump in EPS and a 198% increase in revenue. Analysts are predicting gross margins of 10.55%.
Last week, however, the company provided preliminary results, raising its Q1 revenue range to $18.5 billion to $19.5 billion from $14.5 billion to $15.5 billion, citing increased demand for its AI servers.
Super Micro also raised its gross margin estimates to 12%-12.5% from 10.4%-10.8%. The company attributed the improvement to customer and product mix.
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