Super Micro Computer (SMCI 33.18%) stock has continued to post big gains this week. The company's share price was up 12.3% from last week's market close before the market opened this Friday, according to data from S&P Global Market Intelligence.
On the heels of the explosive upward quarterly guidance revisions it issued last week, Super Micro Computer's bullish momentum has continued in this week's trading. The company's share price has also gotten a lift from ASML's better-than-expected fourth-quarter report.
NASDAQ: SMCI
Key Data Points
Super Micro Computer is showing impressive momentum
Last Friday, Super Micro Computer updated its guidance for the second quarter of its current fiscal year, which ended Dec. 31. The table below compares the company's previous targets to the new guidance ranges that it issued last week.
| Metric | Previous Guidance Range | Updated Guidance Range |
|---|---|---|
| Revenue | $2.7 billion to $2.9 billion | $3.6 billion to $3.65 billion |
| Earnings per share | $3.75 to $4.24 | $4.90 to $5.05 |
| Adjusted earnings per share | $4.40 to $4.88 | $5.40 to $5.55 |
Data source: Super Micro Computer.
Super Micro stock saw explosive gains following the dramatic upward guidance revisions, and bullish sentiment has carried over to this week's trading. In addition to that catalyst, the sales and earnings beats that ASML delivered with its Q4 report also helped send the server specialist's share price higher.
ASML is the leading manufacturer of advanced lithography machines used in semiconductor fabrication, and its performance is often viewed as a bellwether for the broader chip industry. The semiconductor equipment specialist posted net income of 2 billion euros on revenue of 7.2 billion euros, beating Wall Street's target for a profit of 1.87 billion euros on sales of 6.9 billion euros.
While ASML guided for its 2024 revenue to be roughly in line with the 27.56 billion euros it recorded last year, the company is seeing some AI-related demand tailwinds. Investors are viewing that as a positive indicator for Super Micro Computer, which has been benefiting from surging demand for artificial intelligence (AI) services.
What comes next for Super Micro stock?
Super Micro Computer stock is already up roughly 67% in 2024. On the other hand, the company's shares don't look exorbitantly valued in the context of recent business momentum.
SMCI PE Ratio (Forward) data by YCharts
Trading at roughly 25 times this year's expected earnings, Super Micro stock could still have room to run above current pricing levels. The business's growth could be uneven, but AI trends could continue powering strong sales and earnings results. Investors should get more details on the performance outlook when the company publishes its fiscal Q2 results on Jan. 29.
