Super Micro Computer, Inc. (NASDAQ:SMCI) posted a significant 32% weekly gain to reach $47.91, driven by investor optimism over its long-term business outlook. The company expects revenue for the second quarter of fiscal year 2025 to increase by 54% year-over-year, with diluted net income per share projected between 50 cents and 52 cents.
SMCI’s growth prospects are tied to the integration of DLC technology, which is expected to be adopted by around 30% of new data centers over the next 12 months. The company has set a revenue target of $40 billion for fiscal year 2026, significantly higher than analyst consensus.
With a market capitalization of at least $2 billion and daily trading volume of $5 million, SMCI ranks 7th on our list of top gainers last week. However, we note that AI stocks may hold greater promise for delivering higher returns in a shorter timeframe, making it essential to consider alternative options.
Source: https://finance.yahoo.com/news/why-super-micro-computer-inc-125154320.html