Fans of Super Micro Computer (NASDAQ:SMCI) stock are feeling hopeful ahead of the company’s fiscal third-quarter earnings results due tomorrow, April 30. Indeed, SMCI stock has regained more than 20% of its value in just the past five trading sessions.
What do you need to know about SMCI stock today?
Well, since reaching its all-time high back in early March, SMCI has been somewhat topsy turvy. Indeed, the chipmaker lost as much as 45% of its value in the past two months as some investors decided to capitalize on their profits. However, it appears investors are back ahead of the company’s earnings tomorrow.
Super Micro Computer is expected to post net sales of $3.99 billion in fiscal Q3, reflecting stunning revenue growth of 212% year-over-year (YOY) and a 9% jump from Q2. The company is also expected to announced EPS of $5.83, more than three times larger than the EPS of $1.63 seen in Q3 2023.
Investors Continue to Build Momentum for SMCI Stock
Investors are keeping high hopes for SMCI stock. Indeed, some analysts believe SMCI represents the closest thing to the next Nvidia (NASDAQ:NVDA).
This includes KeyBanc analyst Tom Blakey, who recently shared that he believes SMCI stock can reach as high as $1,173 over the next 12 months. That said, Blakey remains cautious of SMCI, arguing that competition from other chipmakers stands to eat away at its market share, which he estimates could reach past 23% this year.
Not for nothing, as artificial intelligence (AI) continues to facilitate further demand for chips, companies like Super Micro Computer stand to benefit tremendously.
Semiconductors have been one the highest-growing sectors this year as the AI wave continues to push up demand for microchips. As such, Super Micro Computer is part of a growing cast of chipmakers eager to claim their share of the high-growth market.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
