Super Micro Computer Inc (SMCI) is set to report its fiscal first-quarter earnings on February 3, 2025. Analysts expect a non-GAAP earnings per share (EPS) of $0.75, representing a more than doubling increase from $0.34 in the same quarter last year.
The company’s performance in the artificial intelligence (AI) sector will be closely watched, particularly its strategic partnership with NVIDIA. Investors are looking for commentary on customer adoption rates and any new partnerships or initiatives in the AI space. The sustainability of AI-related revenue growth will be a crucial factor in assessing the company’s long-term prospects.
Super Micro Computer also faces concerns about its financial reporting practices, which have led to worries about potential Nasdaq 100 delisting. The company needs to demonstrate improved financial controls and transparency to reassure stakeholders about its governance practices.
Margin analysis is also key, as recent pressures on gross margins due to competitive pricing and liquid-cooling component costs have impacted profitability. Investors will scrutinize any signs of margin recovery or further compression in the quarterly results.
Analysts rate SMCI as a ‘hold’ with 3 ‘buy’, 7 ‘hold’, and 2 ‘sell’. The company’s TipRanks Smart Score is ‘6 Neutral’, indicating that it is neither strongly bullish nor bearish. The technical outlook of the SMCI share price suggests a long-term downtrend, with possible downside targets at $23.51-$22.66 and resistance areas at $48.00-$50.61.
Investors are advised to research the company and semiconductor sector thoroughly before making any decisions. Trading around major market events can be volatile, so risk management tools should be used accordingly.
Source: https://www.ig.com/uk/news-and-trade-ideas/super-micro-computer-earnings-preview–q1-2025-expectations-250130