Super Micro Computer’s shares have surged 59% in the past five trading days, driven by capital spending forecasts from top US tech companies. The company’s central role in the booming artificial intelligence market is seen as a key factor behind its recent rally.
Revenue has more than doubled in three straight quarters due to soaring demand for AI infrastructure. Meta, Amazon, Alphabet and Microsoft are planning to spend over $320 billion combined on AI technologies and data center buildouts this year.
Analysts expect Super Micro’s revenue to increase by 60% in the December quarter, but some are skeptical about the company’s ability to deliver. The stock still lags behind its record high from March due to governance concerns and delayed investor reports.
The recent appointment of a new auditor, BDO, has also been seen as a positive move for the company. However, analysts remain cautious due to substantial uncertainties surrounding Super Micro’s financials and sales expectations.
The earnings report on Tuesday is expected to be a key test for Super Micro, with analysts predicting an 18% downside on the stock. The company faces pressure to perform, having already faced several challenges in recent months, including a potential delisting from the Nasdaq and a probe by the Department of Justice.
Source: https://www.cnbc.com/2025/02/11/super-micro-roller-coaster-has-stock-soaring-ahead-of-q2-2025-earnings.html