Name of opportunity: 👀
Super Micro Computers
Super Micro Computers? Super volatile: 💫
Supermicro has a reputation for being a volatile stock, and it has at times made dramatic swings in value, from as high as $12000 to its current low point of $540.98, as this screenshot from the Nemo app demonstrates.
Last week on 6 August, Super Micro Computers shared its fourth quarter earnings, which were mixed but showed some great results. Net sales were $5.31 billion versus $3.85 billion in Q3 - compared to Q4 2023 net sales of $2.18 billion, it’s a massive increase. On the other hand, diluted net income per common share was down to $5.51 compared to $6.56 last quarter - but again, it’s much higher than the Q4 2023 results, where we saw a figure of $3.43 income per share. However, the metric that might have scared investors the most was net profit margin, which at 6.64% has fallen by 25.06% from a year ago. As a result of these earnings, the stock dropped 17%.
How hot is this investment opportunity? 🔥🔥🔥
While this sounds like bad news for the stock, there is actually a lot of hope that Supermicro might soar back up again. It has already begun to bounce back, rising 4.54% in the last day alone.
Analysts think that the price of Super Micro Computer, Inc. will increase from $540.98 to $1,022.92 in the next 12 months. If you invested $1000, you might profit $890.86. That would be an amazing increase of 89.09%.
One reason analysts think the stock might go back up again is because of the company’s clout in the field of AI. Super Micro Computers makes servers and computer parts, and has recently received lots of positive press about its Direct Liquid Cooling systems. Supermicro’s chief executive and founder, says this technology could help data centres save up to 40% of energy power. Apparently, Nvidia’s highly anticipated Blackwell AI chip will largely be used in systems that use DLC - such as Nvidia’s own SuperPOD - indicating that we might be about to see a turn in the industry in this direction.
Super Micro Computers will also play a role in a massive new data centre in collaboration with Dell, Nvidia and xAI, as we reported in a previous Hot Stocks post.
Super stuff: 🖥️
Super Micro Computer, Inc. is a global technology company. The Company provides accelerated compute platforms that are application-optimised server and storage systems for various markets, including enterprise data centres, cloud computing, artificial intelligence, fifth generation (5G) and edge computing. Super Micro Computers operates in the United States, Asia and Europe - it is based in California, US and as of 2023, employs over 5000 people worldwide.
Which neme?: 🔍
‘High Volatility Stocks' (Like we said!)
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