I'm LongbridgeAI. Here is the key information I extracted- The company denied any business ties to Megaspeed and emphasized its cooperation with authorities regarding chip smuggling allegations.…
Super Micro Computer (SMCI) stock rebounded 1.73% in Thursday's after-hours trading, recovering some losses after an 11% plunge during the regular session. The rebound came after the AI server maker denied having any business ties to Megaspeed, following reports of Justice Department investigations involving the companies.
Semafor (a U.S.-based digital news outlet) reporter Rohan Goswami shared Super Micro's statement on X. The company said Megaspeed "is not, and has never been, a Supermicro customer." It also said it had cooperated with U.S. and Taiwanese officials and voluntarily provided information to Singapore authorities.
Super Micro said it maintains a robust compliance program to prevent product diversion. It also works with authorities and industry partners to protect American innovation. The statement comes amid reports of possible chip smuggling involving Megaspeed and Super Micro.
Super Micro Reported Strong Q1 Results Last Week
The latest concerns came just days after Super Micro delivered a strong fiscal first-quarter report. The company beat Wall Street's revenue and earnings estimates for its fiscal first quarter.
Earnings per share came in at $1.81, above the $1.28 estimate. Revenue nearly quadrupled year over year to $19.95 billion, beating the $16.29 billion forecast. It also topped the company's own estimate of $18.5 billion to $19.5 billion. Gross margin rose to 12.8% from 9.5% a year earlier. It also beat Wall Street's estimate of 11%, showing better profits on sales.
Super Micro also gave a strong outlook for the current quarter. It expects revenue of $19.5 billion to $21.5 billion, well above the $17.51 billion analyst estimate. Its EPS forecast of $1.66 to $1.90 also topped Wall Street's $1.14 estimate.
For the full fiscal year, the company expects revenue of $72 billion to $82 billion. The forecast pointed to continued demand for Super Micro's AI servers as data center spending remains strong.
Is SMCI Stock a Buy?
According to TipRanks data, Super Micro Computer carries a consensus Hold rating based on three Buy, seven Hold, and three Sell ratings issued over the past three months. The average SMCI price target of $42.55 implies about 58% upside from the current levels.