Super Micro Computer (SMCI) is set to announce its first-quarter Fiscal 2025 earnings on November 5, with analysts projecting strong results, TipRanks reports.
Wall Street anticipates that the company, known for its contributions to artificial intelligence (AI) infrastructure, will report earnings per share (EPS) of $0.73, a 115% increase from last year, alongside a revenue surge of 205% to $6.46 billion, according to TipRanks data.
Despite these optimistic forecasts, SMCI’s stock has faced a significant decline, falling over 60% in the last six months. This downturn follows a series of setbacks, including recent concerns about financial transparency and reporting practices. Key events affecting investor sentiment include the resignation of Ernst & Young LLP, SMCI’s auditor, which cited concerns over the reliability of the company’s financial disclosures. Additionally, in August, Hindenburg Research raised accusations of accounting irregularities, and Nasdaq issued a 60-day notice to SMCI after delays in filing its annual report.
While some analysts remain cautious due to ongoing internal control issues and the delayed 10-K filing, others see potential for growth as demand for AI infrastructure rises. SMCI’s product offerings position it well to capture market share in this sector, according to bullish perspectives from TipRanks analysts.
On TipRanks, SMCI holds a “Moderate Buy” consensus rating, with a target share price of $69, implying a 137% upside.
