Super Micro Computer (SMCI) rebounded strongly on Tuesday, countering a two-day sell-off that had caused a 20% decline in the company’s valuation. The AI server company’s shares surged over 7% in late morning trading, becoming the top gainer in the S&P 500. The rebound followed Super Micro Computer’s announcement on Friday that it would release its fiscal third-quarter results on April 30. In recent quarters, the company has provided pre-announced results, including an 11-day advance notice of its earnings call in January. A consensus of analysts expects the company to report quarterly revenue of $3.92B and earnings per share of $5.72. Loop Capital recently set a price target of $1,500 on the stock, citing the company’s leadership in the generative AI server industry and its growing advantage over competitors.
The rebound in AI stocks, including Super Micro Computer, comes after a turbulent Friday trading session. Concerns surrounding Super Micro Computer and AI had caused a downturn in semiconductor stocks. However, investors appear optimistic about Super Micro Computer’s prospects, particularly in light of its strong position in the growing generative AI server market.
