Super Micro Computer Inc. reports fiscal first-quarter earnings Tuesday after market close. The San Jose-based AI server maker pre-announced on October 20 that revenue would reach $18.5 billion to $19.5 billion for the quarter ended September 30, far exceeding prior guidance of $14.5 billion to $15.5 billion. Gross margins are expected at 12.0% to 12.5%, well above the prior forecast range of 10.4% to 10.8%. Management attributed the revenue surge to increased demand for AI platforms and margin expansion to favorable customer and product mix.
The stock trades at 9.1 times trailing earnings and 6.0 times forward earnings. Analysts rate the stock a hold with a mean price target of $43.27, implying 42% upside from the current $30.44 share price. EPS estimates have climbed 19% over the past 60 days, while revenue estimates rose 8.6% over the same period.
Investors are watching three key areas Tuesday. First, whether Super Micro delivers on the pre-announced numbers. Second, the state of the company's backlog. Last quarter, Super Micro reported more than $60 billion in orders, and analysts are watching for updates on next-generation AI system ramps including platforms based on newer GPU architectures. Rosenblatt analyst Sajal Dogra noted that "with the September-quarter raise and the Vera Rubin volume ramp still ahead," the firm raised its full-year estimates significantly. Third, investors want clarity on ongoing export-control investigations, which have not derailed momentum so far.
The earnings call marks the first under new CFO Mark Long, and his guidance will be closely parsed. In the prior quarter, Super Micro delivered an EPS surprise of 139%, with earnings of $1.70 crushing the $0.71 consensus, though revenue of $11.12 billion came in slightly below expectations.