$Super Micro Computer(SMCI.US)Context: Super Micro Computer (SMCI) stock rebounded 1.73% in Thursday's after-hours t…

$Super Micro Computer(SMCI.US)

Context: 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.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.

My Trade: Was waiting for a further drop to buy more as the steep decline is an overreaction in my opinion.

Takeaway: 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. @Captain's Treasure