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Key Updates
- Supermicro shares plummeted by 13% on Tuesday, 6 August 2024, following the release of their fiscal fourth-quarter earnings, which fell short of analysts’ predictions.
- The company reported a decrease in gross margin to 11.2%, compared to 17% in the same quarter last year and 15.5% in the previous quarter.
- Supermicro announced a 10-for-1 stock split, with trading on a split-adjusted basis scheduled to commence on 1 October.
Recent Developments That Could Affect Supermicro’s Share Price
SMCI declines due to concerns over high chip production costs [1]
Supermicro stocks fell by 12.3% in premarket trading on Wednesday, 7 August 2024, driven by worries about the high costs of AI server chip production impacting its profit outlook, overshadowing positive sales projections.
For the fourth quarter, the company reported an adjusted gross margin of 11.3%, which was below the 14.1% average estimate from analysts, according to LSEG data. This discrepancy was due to rising supply chain costs and a shortage of essential components.
Nonetheless, CEO Charles Liang reassured investors that margins are expected to stabilise within the normal range by the end of fiscal 2025 and affirmed the company’s target gross margin of 14% to 17%.
Supermicro announces first-ever stock split [2]
Supermicro has disclosed in a regulatory filing that its board of directors has approved a 10-for-1 forward stock split. This change will be implemented through an amendment to the company’s Amended and Restated Certificate of Incorporation, which will proportionally increase the number of authorised common shares.
Following this stock split, shareholders will receive nine extra shares for every share they currently own, with the adjustment taking effect after the market closes on Monday, 30 September. The stock is anticipated to start trading on a split-adjusted basis on Tuesday, 1 October.
Supermicro indicates delay of Nvidia’s Blackwell until early 2025 [3]
During the earnings call, Supermicro’s CEO Charles Liang announced that significant volumes of Nvidia’s Blackwell GPUs are not expected until the quarter ending March 2025, with only a few units possibly arriving by December.
This delay led Supermicro to forecast revenue of “only $26B to $30B” for fiscal year 2025, which started in July 2024.
History [4]
Super Micro Computer Inc., commonly known as Supermicro, was founded on 1 November 1993. The company started as a small operation with just five employees and has grown into a major player in the information technology industry, specialising in high-performance and high-efficiency servers involving AI.
In 1995, Supermicro made its mark by introducing the world’s first x86 DP server boards based on the Orion chipset. Four years later, the company achieved another milestone with the launch of the industry’s first redundant cooling power supply.
Supermicro has maintained a long-standing partnership with NVIDIA, collaborating on numerous initiatives over the years. A significant recent collaboration was announced on 21 May, 2023, when Supermicro unveiled the industry’s first NVIDIA HGX H100 8-GPU and 4-GPU servers with liquid cooling. This partnership is designed to enhance data centre efficiency and performance.
In an industry notorious for high energy consumption, Supermicro has positioned itself as a leader in green computing. Their trademarked slogan, “We Keep IT Green®,” underscores their commitment to energy-efficient technologies aimed at reducing environmental impact.
Over the years, Supermicro has diversified its product portfolio to include server management software and storage systems, addressing the needs of various markets such as enterprise data centres, cloud computing, artificial intelligence, 5G, and edge computing.
Super Micro Computer Share Price 2024
Here is how Super Micro Computer Inc has been performing on the stock market for the past 52 weeks:
Supermicro’s stock has experienced significant volatility over the past year, driven by its strategic emphasis on AI and green computing.
In January, the stock climbed from less than $300 to more than $1,000 in a couple of months, likely in response to the preliminary results for its fiscal Q2. The company substantially raised its performance targets, with updated revenue and earnings projections significantly surpassing prior guidance. This led to a surge in investor confidence and aggressive stock buying [5].
As a result, the stock climbed 381.48% within two months, reaching its peak at $1,188.07 on 13 March, 2024.
However, the stock has been on a downward trend since then. In April 2024, Supermicro’s stock dropped 23% after announcing the date of its Q3 earnings release. Wall Street was disappointed by the absence of a preannouncement, which had been made the previous year, leading to a sharp decline [6].
In July, SMCI continued to decline as concerns over the sustainability of the AI growth trend intensified, contributing to a broader market pullback in tech stocks [7].
| Super Micro’s Stock Price History (Annual) [8] | ||||||
| Year | Average Stock Price | Year Open | Year High | Year Low | Year Close | Annual % Change |
| 2023 | 204.0410 | 83.8600 | 353.2900 | 70.8600 | 284.2600 | 246.24% |
| 2022 | 55.1197 | 45.6200 | 93.8700 | 34.8300 | 82.1000 | 86.80% |
| 2021 | 36.9322 | 31.0500 | 46.9700 | 31.0000 | 43.9500 | 38.82% |
| 2020 | 26.2283 | 15.6500 | 32.3100 | 15.6500 | 31.6600 | 102.30% |
| 2019 | 15.6500 | 15.6500 | 15.6500 | 15.6500 | 15.6500 | 0.00% |
| 2018 | 19.2213 | 21.4500 | 27.0000 | 15.6500 | 15.6500 | -25.21% |
| 2017 | 24.4696 | 28.4500 | 28.8500 | 19.5500 | 20.9250 | -25.40% |
| 2016 | 26.1572 | 23.6500 | 34.4900 | 19.0200 | 28.0500 | 14.44% |
| 2015 | 30.5198 | 34.7300 | 41.1300 | 22.3200 | 24.5100 | -29.73% |
| 2014 | 24.4177 | 16.4400 | 36.5300 | 16.4400 | 34.8800 | 103.26% |
| 2013 | 12.4237 | 10.5000 | 17.1800 | 9.4100 | 17.1600 | 68.24% |
When Was Super Micro Computer Inc Listed?
Super Micro Computer Inc made its initial public offering (IPO) on the NASDAQ Stock Market on 8 March 2007.
About the stock: Super Micro Computer
Super Micro Computer Inc Trading Information
- Primary exchange: NASDAQ
- Super Micro Stock Symbol: SMCI
- Country: US
- Currency: USD
- Trading hours:
- Main: 9.30am to 4pm ET, Mon to Fri
- Pre-market: 4am to 9.30am
- After-market: 4pm to 8pm
Business Segment [9]
| Sector | Industry | Market Cap (As of 8 August 2024) | Revenue (2023) |
| Computer and Technology | Computer Storage Devices | $34.508B | $14.943B |
Table 2: Super Micro’s business segment
Based on IDC data, Supermicro ranked as the fourth-largest server vendor worldwide in the second quarter of 2023. The company has been expanding at a pace surpassing the overall server market, which only experienced a slight growth of 0.5% in the third quarter of 2023 [10].
Stock Split History [11]
The server specialist has recently announced that its board of directors has approved a 10-for-1 forward stock split. The stock is expected to begin trading on a split-adjusted basis on Tuesday, October 1.
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References:
- “Super Micro slides after margin, profit forecasts disappoint – The Star”. https://www.thestar.com.my/tech/tech-news/2024/08/07/super-micro-slides-after-margin-profit-forecasts-disappoint. Accessed 8 August 2024.
- “Super Micro Computer Announces 10-for-1 Stock Split. Here’s What Investors Need to Know. – The Motley Fool”. https://www.fool.com/investing/2024/08/06/supermicro-10-for-1-stock-split-generative-ai/. Accessed 8 August 2024.
- “Super Micro CEO indicates Nvidia’s Blackwell likely delayed until early 2025 – Seeking Alpha”. https://seekingalpha.com/news/4136020-smci-ceo-indicates-nvidias-blackwell-likely-delayed-until-early-2025. Accessed 8 August 2024.
- “Company Profile – Supermicro”. https://www.supermicro.com/en/about. Accessed 8 August 2024.
- “Why Super Micro Computer Stock Is Skyrocketing Today – The Motley Fool”. https://www.fool.com/investing/2024/01/19/why-super-micro-computer-stock-is-skyrocketing-tod/. Accessed 8 August 2024.
- “Super Micro Computer stock crashes 23%, drags down AI darling Nvidia after it doesn’t preannounce earnings – Market insider”. https://markets.businessinsider.com/news/stocks/super-micro-computer-smci-stock-crash-drags-ai-darling-nvidia-earnings-2024-4. Accessed 8 August 2024.
- “SMCI Alert: Why it’s Time to Buy Super Micro Computer Stock – Investor Place”. https://investorplace.com/market360/2024/07/smci-alert-why-its-time-to-buy-super-micro-computer-stock/. Accessed 8 August 2024.
- “Super Micro Computer – 17 Year Stock Price History | SMCI – Macrotrends”. https://www.macrotrends.net/stocks/charts/SMCI/super-micro-computer/stock-price-history. Accessed 8 August 2024.
- “Super Micro Computer Revenue 2010-2024 | SMCI – Macrotrends”. https://www.macrotrends.net/stocks/charts/SMCI/super-micro-computer/revenue. Accessed 8 August 2024.
- “Why Supermicro is mopping up the floor with the competition – Morning Star”. https://www.morningstar.com/news/marketwatch/20240122785/why-supermicro-is-mopping-up-the-floor-with-the-competition. Accessed 8 August 2024.
- “Super Micro Computer Announces 10-for-1 Stock Split. Here’s What Investors Need to Know – The Motley Fool”. https://www.fool.com/investing/2024/08/06/supermicro-10-for-1-stock-split-generative-ai/. Accessed 8 August 2024.
