(Reuters) – Supermicrocomputer shares rose 11% before the bell on Tuesday after the artificial intelligence server maker reported stunning quarterly results and gave full-year revenue estimates that significantly beat Wall Street expectations. It rose recently.
The company, whose customers include NASA and Japan’s NEC, raised its fiscal 2024 revenue forecast range to $14.3 billion to $14.7 billion from $10 billion to $11 billion, compared to analysts’ expectations of $11.51 billion, according to LSEG data. It exceeded $1,000.
The forecast comes after the San Jose, Calif.-based company’s market capitalization rose $10 billion to $27.53 billion, following raised third-quarter guidance announced earlier this month, and other AI-related companies. pushed up.
Shares of Nvidia, the biggest beneficiary of the AI hype, rose 1% on Tuesday, while shares of Microsoft, which is scheduled to report earnings after the market close, rose 0.8%.
“There is renewed optimism about the potential size and length of this AI boom,” said Joshua Mahoney, chief market analyst at Scope Markets.
“Microsoft shareholders will be hoping that the company’s initial investments in AI continue to pay off, with record revenue expected to be $61 billion.”
Supermicro’s stock price has more than tripled since May last year, when CEO Charles Liang said “AI momentum has been a huge benefit to Super Micro.”
The stock, which closed at a record high on Monday, was last up at $548.49 and was on track to hit a new all-time high when the market opened.
Supermicro reported third-quarter net sales of $3.66 billion, up 17% year-over-year, and adjusted earnings per share (EPS) of $5.59, both for the second quarter. This exceeded the latest forecast just a short while ago.
Analysts’ average estimate was for revenue of $2.87 billion and EPS of $4.55.
Supermicro’s 24.9 times expected earnings for the next 12 months is lower than Nvidia’s 30.5 times, according to LSEG data. A low multiple indicates that the stock is trading at a discount relative to its earnings potential.
(Reporting by Medha Singh in Bengaluru; Editing by Shinjini Ganguly)
