Super Micro Computer’s shares plummeted 20% despite a 143% revenue surge to $5.31 billion and a 10-for-1 stock split, as earnings per share of $6.25 fell short of expectations due to gross margin pressures. The company anticipates fiscal 2025 revenue between $26 billion and $30 billion, driven by strong demand for its AI infrastructure, although a component shortage delayed $800 million in revenue. Analysts suggest caution, noting the low-margin nature of the business despite its growth potential.
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Stock Futures Slip After Wall Street Snaps Three-Day Losing Streak
Stock futures fell after Wall Street ended a three-day decline. Super Micro Computer and Airbnb saw significant drops in after-hours trading. Despite a rebound, uncertainty remains as the market grapples with recession worries and ongoing volatility. Earnings reports from companies like Disney and CVS Health are awaited.
read moreSuper Micro Computer: AI Stock Competing with Nvidia in Growth
A new AI stock, Super Micro Computer, has outperformed Nvidia in the first half of the year and has been invited to join the S&P 500 and Nasdaq 100. With soaring earnings and a focus on AI data centers, the company’s growth potential looks promising, especially as it collaborates closely with top chip designers like Nvidia and anticipates significant growth in the AI market.
read moreStock Market Weekly Review: Tech Struggles, Earnings Winners, and Economic Indicators
The stock market rally diverged, with the Nasdaq and S&P 500 falling below their 50-day lines while small caps jumped. Tesla and Google-parent Alphabet tumbled on earnings, while there were growing concerns about AI investment fatigue. ServiceNow, IBM, RTX, and Tenet Healthcare were among the notable earnings winners. Inflation data showed mixed results, with the Fed expected to signal a shift toward near-term rate cuts at the next meeting. Tesla’s earnings missed views, while ServiceNow and SAP reported strong gains. Semiconductor and aerospace sectors experienced mixed results, with some companies beating expectations and others falling short.
read moreAethir’s Decentralized GPU Network Achieves $36M Revenue with 10% Monthly Growth
Aethir, a decentralized cloud infrastructure provider, has achieved $36 million in revenue with 10% monthly growth by offering GPU-as-a-service through its DePIN network. Utilizing tier 3 and tier 4 data centers, Aethir provides highly scalable and cost-effective GPU computing services, attracting clients for AI, cloud gaming, and edge computing needs. The company’s upcoming mainnet launch of the Aethir Network Protocol aims to integrate its software with Ethereum and Arbitrum contracts, further solidifying its position in the market.
read moreBig Analyst Moves in AI: Tesla Downgraded, Apple and Microsoft Upgraded
Microsoft’s leadership in GenAI is driving substantial incremental IT share gains, with 94% of CIOs planning to adopt Microsoft Generative AI products in the next 12 months. KeyBanc Capital Markets has lifted price targets for several major chipmakers, projecting AI servers to grow by 150% to approximately 450,000 units in 2024. UBS downgraded Tesla stock to Sell, citing a reassessment of its valuation amid market expectations for its growth, particularly in AI. Nomura research analysts downgraded Super Micro Computer stock from Buy to Neutral due to “limited share price upside” amid uncertainties surrounding procurement decisions and GPU transitions.
read moreUS Stock Futures Rise as Investors Await Fed Chair Powell’s Testimony
US stock futures rose as investors awaited Federal Reserve Chair Jerome Powell’s testimony on the economy and interest rate cuts. The S&P 500 and Nasdaq Composite were up, while the Dow Jones Industrial Average was down. Expectations of a potential rate cut in September have been supported by recent economic data, with Powell’s testimony expected to provide insight into the timing of any rate adjustments.
read moreStock Market Update: S&P 500 Gainers and Losers on Monday
Corning, Super Micro Computer, and Intel were the top gainers on the S&P 500, while Paramount Global, Etsy, and Chipotle Mexican Grill were the biggest losers. Corning surged to a three-year high, Super Micro stock jumped, and Intel leapt, with potential for AI laggards to gain ground in the second half. On the other hand, Paramount stock declined, Etsy hit a four-year low, and Chipotle tumbled, facing sharp sell-offs since reaching a record high in June.
read moreNvidia Stock Downgraded to Neutral Due to Valuation Concerns
Nvidia’s stock, which had seen a significant uptrend, has been downgraded by analyst Pierre Ferragu due to concerns about its valuation. Despite being a part of the artificial intelligence boom, the stock’s high valuation has led to a rare occurrence of analysts downgrading it. The chipmaker’s shares fell 1.9% on Friday’s trading session, while the Nasdaq 100 Index gained 1% as of Friday.
read moreWall Street Hits Record Highs on Optimism Over Inflation Data
Wall Street’s major indexes hit record highs as tepid U.S. Consumer Price Index data fueled hopes for Federal Reserve interest rate cuts. Technology stocks led the charge, with the S&P 500 and Nasdaq both advancing over 1%. The Dow Jones Industrial Average also neared the 40,000 milestone, while retail sales remained flat and megacap stocks like Nvidia and Microsoft made significant gains.
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