John Deo

Supermicro (NASDAQ:SMCI) Slumps Ahead of Key Earnings Update

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    Posted by John Deo Feb 25 - Filed in General - #financialmodelingprep  - 27 views

    Supermicro's (NASDAQMCI) stock fell nearly 8% on Monday, as investors brace for its upcoming financial update on February 25, 2025. The AI server company is expected to file its delayed 10-K and 10-Q reports by this date, addressing investor concerns over its financial disclosures.

    Why Investors Are Watching Supermicro Closely

    \ud83d\udcc5 Upcoming Financial Filings:

    • Supermicro aims to file its Annual Report (10-K) for FY 2024 and its Quarterly Reports (10-Q) for Q3 & Q4 2024 by February 25.
    • The delays stem from corporate governance concerns raised in 2024, leading to the resignation of its auditor.

    \ud83d\udcc8 Strong Revenue Forecast for FY 2026:

    • The company projects $40 billion in revenue for fiscal 2026, implying up to 70% growth from 2025.
    • CEO Charles Liang even suggested this figure might be conservative, driven by NVIDIA's Blackwell AI server demand.
    • Since announcing this guidance, Supermicro's stock has surged 34%.

    \ud83d\udcc9 Short Covering & Market Volatility:

    • Short sellers have targeted Supermicro due to Hindenburg Research’s allegations of accounting manipulation.
    • However, recent gains indicate short covering, fueling a rally despite regulatory scrutiny.

    \ud83d\udd0d NVIDIA Earnings as a Key Catalyst:

    • Supermicro’s fate is closely tied to NVIDIA's (NASDAQ:NVDA) earnings report on February 26, which could further impact its stock price.

    Investor Outlook & Key Metrics

    \ud83d\udd39 Financial Transparency: Investors want reassurance that corporate governance issues are resolved.
    \ud83d\udd39 Revenue Growth Confirmation: The $40B target for FY 2026 must be supported by strong AI server demand.
    \ud83d\udd39 NVIDIA's Performance: If NVIDIA delivers strong AI-related results, Supermicro could see further upside.

    For more insights into Supermicro’s financials, check out its 10-K Annual Reports and full financial statements.

    \ud83d\udcca Bottom Line: Supermicro remains one of the most volatile AI plays, with significant upside potential but regulatory and market risks that cannot be ignored.