With a market capitalization of $2.6 billionSuper Micro Computers, Inc. (SMCI) specializes in high-performance server and storage solutions. The company develops and manufactures energy-efficient, application-optimized systems based on a modular, open x86 architecture for data centers, cloud computing, AI and 5G markets. The San Jose, California-based company is expected to report its financial results Result Q1 Results on Wednesday November 6th.

Ahead of this event, analysts expect the AI ​​server maker to report Earnings of $0.51 per shareThis represents an increase of 82.1% from $0.28 per share in the year-ago quarter. The company has beaten Wall Street earnings estimates in two of the last four quarters, while failing to do so in two other quarters. Last quarter, SMCI missed the consensus EPS estimate by 27.6%.

For fiscal 2025, analysts forecast SMCI will report earnings per share of $2.85, up 41.8% $2.01 in fiscal year 2023.

In 2024 Super Micro Computer rose 60.7%outperforming the broader S&P 500 index ($SPX) 21.8% profit and the Technology Select Sector SPDR Fund (XLK) Increase of 19.4% on a YTD basis.

Super Micro Computer shares closed over 20% lower following the release of fourth quarter results on August 6, primarily due to a significant decline in gross marginwhich fell from 17% to 11.2%, indicating rising input costs that the company was unable to pass on to customers. Despite a 144% increase in revenue to $5.3 billion, in line with analyst estimates, SMCI reported weaker-than-expected adjusted earnings per share of $6.25. Additionally, while the company forecast strong revenue growth for fiscal 2025, its adjusted profit forecast was slightly below analyst expectations, further fueling investor skepticism.

However, the stock rose 15.8% on October 7 due to an update robust sales of its server systemsparticularly its liquid cooling solutions, with over 2,000 liquid-cooled server racks shipped since June and a planned deployment of more than 100,000 GPUs for AI applications.

Analysts Consensus opinion on Super Micro Computer stock is cautiously optimistic and receives an overall “Moderate Buy” rating. Of the 13 analysts covering the stock, four rate it as a “Strong Buy,” one as a “Moderate Buy,” seven as a “Hold” and one as a “Strong Sell.” This setup is less bullish than three months ago, with seven analysts suggesting a “Strong Buy.” At the time of writing, SMCI is trading below analysts' average price target of $72.81.

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At the time of publication, Sohini Mondal did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see Barchart's disclosure policy here.

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