Despite the turmoil in the stock market caused by persistent inflation, shares of Super Micro Computer (SMCI+5.44%) rose Wednesday morning as the chipmaker’s earnings report highlighted a positive outlook regarding its delayed annual report and announced an ambitious goal for 2026.
The AI hardware company is working to avoid delisting by Nasdaq, with a deadline of February 25 to submit its delayed annual report to the Securities and Exchange Commission (SEC). CEO Charles Liang is confident that it will be submitted on time. The company expects to reach $40 billion in revenue by fiscal 2026, while analysts anticipated $30 billion for that period.
However, the company lowered its fiscal 2025 revenue guidance, now expecting between $23.5 billion and $25 billion. This marks a decline from its previous forecast of $26 billion to $30 billion, while analysts had projected $24.9 billion. Moreover, the company reported net sales between $5.6 billion and $5.7 billion, reflecting a 54% year-over-year growth, although analysts had expected $5.89 billion.
Super Micro makes hardware that supports AI applications. Last year, the San-Joes-based company went through many ups and downs.
The SMCI stock thrived for much of 2024 and entered the Fortune 500 at No. 498 as part of a frenzy over AI and related tools.
As a key partner and reseller of Nvidia’s (NVDA-1.07%) GPUs and other components, Super Micro integrates the technology into its servers to support AI workloads. Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang are both Taiwanese immigrants and have a long-standing relationship.
Super Micro Computer went through a rough phase in September 2024 when a short seller, Hindenburg Research, published a scathing report accusing the company of accounting red flags and questionable business dealings, including alleged sanctions evasion from exports to Russian and Chinese firms. Following that, its auditor, Ernst & Young, resigned, citing disagreement over Super Micro Computer’s governance practices and board independence.
Looking forward to a fresh start in 2025, SMCI stock has risen 37% year-to-date and is currently trading at $41 per share.
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