Super Micro Computer (SMCI) saw a significant rise in their shares after they raised the guidance for their second-quarter fiscal 2024. The company now anticipates reporting revenue exceeding $3.6 billion, surpassing the previous forecast of up to $2.9 billion. Adjusted earnings are also expected to be higher, ranging between $5.40 to $5.55 per share compared to the previous guidance of $4.40 to $4.88 per share.
Madison Mills from Yahoo Finance reported this development live from the New York Stock Exchange. She emphasized that the rise in SMCI shares is due to the hyperscaler allocation, driven by huge tech companies like Microsoft and Apple needing additional storage for the data they store in their massive data centers.
Mills also highlighted that SMCI is expected to benefit from the growing push into AI, projecting a revenue increase of over 100%. The stock is predicted to continue its upward trend and is considered an attractive investment opportunity due to its more moderate valuation compared to other high-profile tech stocks.
– Super Micro Computer (SMCI) raised guidance for its second-quarter fiscal 2024, expecting over $3.6 billion in revenue and adjusted earnings of $5.40 to $5.55 per share.
– The company’s shares are up 11% following the news, with a 20% increase year-to-date.
– The company is benefitting from the push into AI and is seen as a stock to watch for investors interested in tech and AI.
– Some analysts suggest that SMCI may be a better play than AMD for those who do not want to invest in stocks tied to what’s going on in China.