Super Micro Computer $SMCI Stock Analysis
Supermicro provides high-performance, high-efficiency servers for data centers.
Supermicro Computer released Q4 FY23 financial results:
- Revenue: $2.18B,+34% y/y, +70% q/q
- Q1 FY24 Guide: $1.9 to $2.2B, +3% to +19% y/y
- FY24 Guide: $9.5B to $10.5B, +33% to +47% y/y
- Net Income: $194M, up from $141M y/y
- Continued record demand for AI-related systems
- Key component shortages continue but improvement is in progress.
CEO Charles Liang:
“our strong growth has been driven by the demand for our leading AI platforms in plug-and-play rack-scale, especially for the large language model-optimized NVIDIA HGX-based Delta Next solution.”
“As the only U.S. -based scale AI platform designer and manufacturer, we have been shipping our winning products in volume to our partners for more than a quarter.”
“We have the best and broadest application-optimized GPU solutions on the market.”
“ Due to the current key components supply shortages, we forecast revenue in the range of $1.9 billion to $2.2 billion for the September quarter. However, given the record high backlog, we see fiscal year 2024 revenue between $9.5 billion to $10.5 billion with room to deliver more depending on availability of supply”
Bullish Opinions
- Growth: impressive 34% y/y growth with solid balance sheet.
- Profitability: Is already profitable
- Demand: The backlog is high. Growing demand for AI in software, storage, cloud, and services.
- Monopoly: “Only US-based scale AI platform designer and manufacturer.”
Bearish Opinions
- Growth: The revenue guide of an 11% median growth rate for the next quarter is too slow.
- Supply: Component shortages and supply chain bottlenecks can slow down production.
Conclusion (Not Financial Advice)
- At 266 price level, SMCI is a BUY.
