Supermicro announces strong growth in Q2 with $5.6B sales. SAN JOSE, Calif. – Super Micro Computer, Inc., a global provider of IT solutions and a major player in the Technology Hardware sector, released its preliminary financial results for the second quarter of its fiscal year 2025, ending on 31 December 2024. The company expects to report net sales of between $5.6 billion and $5.7 billion. This would represent a 54% increase in revenue from the previous year at its midpoint. The company continues its impressive growth trajectory, with revenues growing by 109.77% in the past twelve months. According to InvestingPro, the stock trades are above its fair value, following a 46.26% increase in the last week.
Supermicro announces strong growth in Q2 with $5.6B sales.
The company’s historic gross profit margin was 14.13 percent. GAAP diluted earnings per share are expected to remain flat from the previous year, ranging between $0.50 and $0.52. Non-GAAP diluted income per share is expected to grow modestly, from $0.58 to $0.60, representing a 5% increase year over year. InvestingPro members have access to 16+ more investment tips and comprehensive financial metrics, giving them a deeper insight into SMCI’s growth and valuation potential.
Supermicro expects total cash and cash equivalents of approximately $1.4 billion and total debts of around $1.9 Billion by 31 December 2024, including bank debts of roughly $0.2 billion and convertible notes worth about $1.7 billion. The company has a healthy ratio of current assets to short-term liabilities of 3.77, which indicates strong liquidity.
Charles Liang, the CEO of Supermicro, highlighted Supermicro’s position as a strategic company with its direct liquid cooling technology and the anticipated growth in AI Infrastructure designs. Liang aims to build a solid foundation in the future of Supermicro, setting revenue goals for fiscal year 2025 between $23.5 and $25 billion. He also seeks to earn $40 billion for the fiscal year 2020. SMCI is trading at a fair valuation compared to its growth prospects. Access the Pro Research Report for a detailed analysis of SMCI’s growth trajectory and AI Market Positioning. This report is available exclusively through InvestingPro.
Supermicro expects that in the third quarter of fiscal year 2025 (ending 31 March 2025, net sales will be between $5.0 billion and $6.0 billion. The company anticipates GAAP net profit per diluted share to range between $0.36 and $0.53 and non-GAAP net profit per diluted share to range between $0.46 and $0.62.
Financial information is subject to change and is preliminary. Due to ongoing closing procedures and possible adjustments, the final financial results of this period could differ from those reported in this press release.
Supermicro expects to file its quarterly and annual reports by the 25 February 2025 deadline. The company also announced a $700 million private placement of new Convertible Senior notes due 2028 at 2.25% and an amendment of existing notes.
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Supermicro received subpoenas in response to a report on short sellers published in August 2024. The Department of Justice and the Securities and Exchange Commission issued the subpoenas. The company has cooperated with the requests for documents and maintains that it is not responsible for the derivative and securities litigation filed against it.
Super Micro Computer, Inc., was in the news recently for several reasons. The company is expected to report earnings of around $5,9 billion. Wedbush analyst Matt Bryson expressed concern about the company’s capacity to meet sales expectations and comply with Nasdaq filing requirements.
Super Micro began full production of NVIDIA Blackwell Rack Scale Solutions (NASDAQ: NVDA). The company’s CEO, Charles Liang, highlighted the importance of these solutions for meeting the increasing demands for AI workloads.
Super Micro has also announced that it will be hosting a webcast and conference call for its business update for the second quarter of fiscal 2025. The company moved after BDO USA, P.C. was appointed its new independent auditor in November 2024. This move comes after the company’s appointment of BDO USA, P.C.
Cantor analyst C.J. Cantor’s research suggests that despite concerns raised by Cantor analyst C.J.
Loop Capital Markets reaffirmed its Buy rating for Super Micro Computer and raised the price target from $35.00 per share to $40.00. The analyst at the firm cited Super Micro Computer’s position in a crucial industry and the potential impact from special situation catalysts for his optimistic outlook.
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