Super Micro Computer (NASDAQ: SMCI) shares soared 11.1% to $53.23 as of 12:03 p.m. ET on Tuesday, just one week before the company’s February 25 deadline to file its 2024 annual report and quarterly reports for the September and December 2024 periods. This sharp increase reflects renewed investor interest as the company prepares to release crucial financial data.
Strong Preliminary Financial Results
Supermicro reported forecasted net sales between $5.6 billion and $5.7 billion for its fiscal second quarter ending December 31, 2024, representing a 54% year-over-year midpoint increase. The company also projected diluted net income per share between $0.50 and $0.52, staying consistent with the previous year. Additionally, GAAP gross margins were estimated between 11.8% and 11.9%.
However, the company revised its full-year fiscal 2025 sales projections downward, adjusting its expected range from $26 billion – $30 billion to $23.5 billion – $25 billion. For its fiscal third quarter ending March 31, 2025, Supermicro estimates net revenues between $5 billion and $6 billion, with GAAP net income per diluted share expected to fall between $0.36 and $0.53.
AI Infrastructure Expansion & Market Positioning
Despite the revision in forecasts, CEO Charles Liang remains optimistic about Supermicro’s market positioning. The company’s advancements in direct-liquid cooling technology and partnerships with major chipmakers like Nvidia (NASDAQ: NVDA) position it as a key player in AI infrastructure solutions. Liang noted that more than 30% of new data centers expected to be deployed by Supermicro in the coming year will feature its advanced cooling technologies.
Regulatory Scrutiny and Financial Adjustments
Supermicro also addressed regulatory concerns following allegations in an August 2024 short seller report. The company disclosed that it had received subpoenas from both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). However, the company assured investors that no restatements of previous financial statements were necessary and that it is fully cooperating with authorities.
In addition, Supermicro announced changes to its financial structure, including modifications to existing convertible notes due in 2029 and a $700 million private sale of new convertible senior notes due in 2028.
With its financial reports due next week, investors are closely monitoring Supermicro’s performance, regulatory developments, and strategic direction. The upcoming filings will provide further clarity on the company’s financial health and long-term growth prospects.
