Shares of Super Micro Computer Inc (NASDAQ:SMCI) are rallying on Wednesday, reversing a slight decline from the previous session as investors position themselves ahead of the company’s highly anticipated fourth-quarter earnings report next Tuesday.
What To Know: The server manufacturer’s upcoming results are seen as a critical barometer of its ability to navigate a challenging landscape for AI hardware suppliers. For the fourth quarter, Wall Street analysts are forecasting earnings per share (EPS) of 44 cents on revenue of $5.88 billion.
These figures will be closely watched after SMCI missed expectations in the third quarter, delivering an EPS of 31 cents on revenue of $4.6 billion, which CEO Charles Liang attributed to “economic uncertainty and tariff impacts.”
Investor caution has been amplified by recent headwinds, including news of a potential slowdown in the large-scale “Stargate” AI supercomputer project involving SoftBank and OpenAI, which has created uncertainty for the entire hardware sector.
Reflecting this cautious atmosphere, recent analyst ratings have been mixed. While firms like JP Morgan and Mizuho have maintained Neutral ratings on the stock in July, Bank of America initiated its coverage with an “Underperform” rating.
Next week's earnings release and subsequent management commentary will be pivotal in providing clarity on the company’s trajectory for the remainder of the year.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which measure a stock’s investment appeal across four key metrics, SMCI demonstrates a particularly strong profile in fundamentals and expansion. The company boasts an exceptional Quality score of 95.36, suggesting it is a financially healthy and well-managed enterprise.
This is complemented by a very high Growth score of 87.60, reflecting its rapid expansion and strong performance in the market. The stock also carries significant Momentum with a score of 78.85.
Its Value score is more moderate at 60.20, indicating that while not considered a deep bargain, the stock is not seen as excessively overvalued based on its current fundamentals.
Price Action: According to data from Benzinga Pro, SMCI shares are trading higher by 4.59% to $60.72 Wednesday morning. The stock has a 52-week high of $72.44 and a 52-week low of $17.25.
Read Also: Super Micro Computer’s Options Frenzy: What You Need to Know
How To Buy SMCI Stock
By now you're likely curious about how to participate in the market for Super Micro Computer – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Super Micro Computer, which is trading at $61.32 as of publishing time, $100 would buy you 1.63 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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