AI (artificial intelligence) player Super Micro Computer (SMCI) is set to release its Q2 FY25 results on February 11. SMCI stock has gained over 56% over the past three months, fueled by technological advancements and strategic partnerships, including its collaboration with Nvidia (NVDA). Wall Street analysts anticipate the company will report earnings of $0.61 per share, reflecting a 9% year-over-year increase.
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Meanwhile, revenues are expected to rise by 172% from the same quarter last year, reaching $5.77 billion, according to data from the TipRanks Forecast page.
It is important to highlight that SMCI’s accounting troubles have persisted for months. After the delay in the filing of financial reports, Nasdaq warned it must submit financials by February 25 or face delisting. With growing regulatory pressure, the key question is whether SMCI can overcome these challenges, deliver strong earnings, and sustain its share price rally.
Analysts’ Views on SMCI Ahead of Q2 Results
Ahead of SMCI’s Q2 results, Loop Capital Markets analyst Ananda Baruah has increased its price target for Super Micro from $35 to $40 while maintaining a Buy rating. The five-star analyst considers SMCI an “important company in an important space,” benefiting from growth drivers, such as resolving its SEC filing delays, and strong fundamentals. The firm cited the anticipated ramp-up of Nvidia’s (NVDA) next-generation Blackwell AI chips as a notable catalyst that could further accelerate Super Micro’s growth.
Analyst Baruah highlighted that Super Micro Computer’s two largest customers have ambitious plans for 2025, which should significantly benefit SMCI. One key example is CoreWeave, which plans to double its data centers from 30 at the end of 2024 to 60 in 2025.
Meanwhile, a few other analysts remain skeptical about SMCI stock due to multiple uncertainties, including the timely filing of financial reports and continued listing on Nasdaq. In December, analysts at Goldman Sachs and Wedbush reiterated a Hold rating on Super Micro stock.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 20.12% move in either direction.
Is SMCI Stock a Buy?
The stock of Super Micro Computer has a consensus Hold rating among five Wall Street analysts. That rating is based on one Buy, three Holds, and one Sell recommendation issued in the past three months. The average SMCI price target of $29.75 implies an 18% downside risk from current levels.
