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Amid AI Headwinds, Super Micro's Growth Strategy Is Put To The Test
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Amid AI Headwinds, Super Micro's Growth Strategy Is Put To The Test
Jul 29, 2025 12:18 PM

Shares of Super Micro Computer Inc ( SMCI ) are trading marginally lower Tuesday afternoon as the market anticipates the company’s fourth-quarter earnings report, scheduled for release after the closing bell next Tuesday.

Investors are cautiously awaiting the results, which will be a key indicator of the company’s performance amid recent industry-wide challenges.

What To Know: The upcoming report follows a period of volatility for the server manufacturer. In recent weeks, the stock has been impacted by news of a slowdown in the massive “Stargate” AI supercomputer project, a joint venture involving SoftBank and OpenAI, which has created uncertainty for hardware suppliers.

This adds to headwinds from the company’s third quarter, where it missed analyst expectations, reporting an EPS of 31 cents on revenue of $4.6 billion. At the time, CEO Charles Liang cited “economic uncertainty and tariff impacts” as short-term challenges.

For the upcoming fourth quarter, analysts are forecasting an EPS of 44 cents and revenue of $5.88 billion. Analyst ratings in July have meanwhile been mixed, with firms like JP Morgan and Mizuho maintaining Neutral ratings, while Bank of America initiated coverage with an ‘Underperform’ rating.

Benzinga Edge Rankings: Based on Benzinga Edge stock rankings, which generate four critical scores to help investors, Super Micro Computer ( SMCI ) exhibits exceptional fundamental characteristics. The company earns an outstanding Quality score of 95.36, indicating a robust balance sheet and strong profitability.

This is complemented by a very strong Growth score of 87.60 and a solid Momentum score of 78.85, reflecting its significant expansion and recent positive price performance.

The stock’s Value score is more moderate at 60.20, suggesting that its primary strengths lie in its quality and growth profile rather than being a deep value opportunity at its current price.

Price Action: According to data from Benzinga Pro, SMCI shares are trading lower by 0.85% to $59.54 Tuesday afternoon. The stock has a 52-week high of $73.00 and a 52-week low of $17.25.

Read Also: AMD Rises To 1-Year Highs, Crude Eyes $68: What’s Moving Markets Tuesday?

How To Buy SMCI Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Super Micro Computer’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock

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