Super Micro Computer Inc. (SMCI, Financials), a key supplier of AI server infrastructure for NVIDIA Corp. (NVDA, Financials), reported preliminary second-quarter fiscal 2025 results, posting net sales between $5.6 billion and $5.7 billion, a 54% year-over-year increase at the midpoint.
Shares of Supermicro rose 4.06% to $40.18 as of 10:51 a.m. ET on Feb. 12, driven by strong AI-related demand and continued expansion in data center solutions.
Though non-GAAP EPS is expected at $0.58 to $0.60, showing a 5% yearly increase, the business predicts GAAP diluted earnings per share of $0.50 to $0.52, unchanged from the preceding year. The anticipated range of gross margin is 11.8% to 11.9%.
With GAAP EPS of $0.36 to $0.53 and non-GAAP EPS of $0.46 to $0.62 Supermicro projects sales between $5.0 billion and $6.0 billion for the third quarter ending March 31. From the past $26 billion to $30 billion prediction, the corporation reduced its full-year fiscal 2025 sales expectation to $23.5 billion to $25 billion.
Stressing the need for direct-liquid cooling technologies and AI-optimized servers as well as the company’s developing relationship with NVIDIA, Chairman Charles Liang claims that DLC is expected to be adopted in over 30% of new data centers in the next year, thereby boosting Supermicro’s leadership in artificial intelligence infrastructure.
With a total debt of $1.9 billionincluding $1.7 billion in convertible notesSupermicro had $1.4 billion in cash and cash equivalents as of December 31, 2024.
The business also announced revisions to current notes due 2029 and a $700 million private sale of new 2.25% convertible senior notes due 2028.
Supermicro also acknowledged continuous regulatory investigations by the Securities and Exchange Commission and the U.S. Department of Justice in response to claims made in an August 2024 short-seller report. The corporation is working with document demands and feels linked securities lawsuit has little value.
This article first appeared on GuruFocus.
