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BullDigest's May 13 Pre-Market Summary of Super Micro Computer, Inc.

  • 13.05.2025 15:11
  • bulldigest.com
  • Keywords: Pre-Market, Summary, Super Micro Computer, Inc.

Check out BullDigest's May 13 Pre-Market Summary of Super Micro Computer, Inc.. We provide a summary of the key news before the market opens.

Pre-Market SummaryRJF/PBsentiment_satisfied

Estimated market influence

Yahoo

Positivesentiment_satisfied
Analyst rating: N/A

Yahoo is part of the Yahoo family of brands which includes several other properties. The company provides sites and apps, authenticates users, applies security measures, and prevents spam and abuse.

Raymond James

Positivesentiment_satisfied
Analyst rating: —

Raymond James initiated coverage on Super Micro Computer (SMCI) with an Outperform rating and a $41 price target, citing its leadership in AI-optimized infrastructure. They estimate FY26 revenue at $29.8B and EPS of $3.03, a CAGR exceeding 25%.

Super Micro Computer (SMCI)

Positivesentiment_satisfied
Analyst rating: N/A

SMCI is considered a key AI stock with strong revenue growth (385% in the last decade) and net income increase (1,085%). The company provides GPU server solutions for AI implementation, which account for 70% of their revenue. They are expanding manufacturing capacity globally and have a significant market position in direct liquid cooling servers.

Context

Business Insights and Market Implications Summary

Yahoo Brands

  • Provides aggregate data on visitors, devices (iOS/Android), browsers, and visit duration across its family of brands including Yahoo, AOL, Engadget, Rivals, In The Know, and Makers.
  • Focuses on user authentication, security measures, spam prevention, and abuse detection.

Raymond James Analysis of Super Micro Computer (SMCI)

  • Rating: Outperform with a $41 price target.
  • Revenue Growth: FY26 revenue projected at $29.8B, EPS of $3.03, CAGR >25%.
  • Market Position: Leader in AI-optimized infrastructure, combining scale manufacturing with customized engineering.
  • Valuation: Blended multiple approach (11x P/E to 2026 earnings), bull case fair value at $88.
  • Margins: Gross margins expected to improve with Nvidia Blackwell GPU ramp.
  • Risks: Customer concentration (one customer accounts for 20% of FY24 sales) and limited enterprise services/financing.

24/7 Wall St. Analysis of Super Micro Computer (SMCI)

  • Revenue Growth: 385% increase over the last decade, net income up by 1,085%.
  • Stock Volatility: High volatility with 21% short interest.
  • Tariffs Impact: Affecting revenue guidance.
  • Key Drivers: Industry growth in IT services and shrinking margins to boost AI production capacity.
  • GPU Server Solutions: Contribute 70% of total revenue.
  • Market Growth: Direct liquid cooling (DLC) servers market expected to grow from $5B in 2024 to $21B by 2029.
  • Manufacturing Expansion: SMCI expanding capacity in the U.S., Taiwan, and Europe.
  • Price Targets:
    • Consensus median one-year price target: $43.67.
    • 24/7 Wall St. projection: $68.34 by end of 2025.
    • Five-year forecast (2025–2030): $68.34, $79.87, $86.13, $101.40, $118.86, $138.61.

Bid Price and Ask Price

  • Definition:
    • Bid price: Highest amount a buyer is willing to pay for a stock.
    • Ask price: Lowest amount a seller is willing to sell it for.
  • Liquidity Indicator: The difference between bid and ask prices reflects a stock’s liquidity (ease of buying/selling in the marketplace).