Data Center
Super Micro Q3 Pre-Earnings: Puts and Takes for the AI Bullet Train
In our last write-up, we called Super Micro the “AI Bullet Train” due to neck-breaking growth rates. Last quarter, the company reported a notable 103% year-over-year growth, with revenues surging to $3.66 billion. Management's projections are for nearly double the growth, anticipating Q3 revenues to range between $3.7 billion and $4.1 billion, or growth of 204.7% year-over-year at the midpoint. Consensus estimates of $3.92 billion for growth of 206.3% are expected in tomorrow’s print. Super Micro’s bullet train-like price action is based on upward revisions, which is unique from earnings beat/raise or simply strong estimates. In fact, the stock was down (-12%) following its last earnings report and is now up 80% since that call with gains as high as 135%. This is a stock that does not rely on earnings pops, like most growth stocks, and rather, it requires a bit of tenacity as the intra-quarter changes have been quite profitable.
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