Super Micro Computer (SMCI +0.41%) stock is posting another day of big gains in Friday's trading. The server specialist's share price was up 9.5% as of 1:40 p.m. ET and had been up as much as 12.3% earlier today.
NASDAQ: SMCI
Key Data Points
Supermicro's valuation is surging as investors continue to bet that the company will emerge from accounting controversies that have depressed its valuation over the last year. In addition to sustained momentum from other positive catalysts, the company's valuation is getting a boost from news that Meta Platforms plans to invest heavily in humanoid robots.
Supermicro stock soars on Meta's robot news
According to a report from Bloomberg today, Meta is on track to make big investments to develop humanoid robots. While they would likely have onboard computational systems, they will likely also use cloud-based artificial intelligence (AI) software. That could be a very positive demand indicator for Supermicro.
Meta Platforms is a Supermicro customer that has purchased large servers. To support its new robotics programs, the company will likely continue spending heavily to build its AI data center infrastructure. That could mean Supermicro will see more large orders from the tech giant in the not-too-distant future.
What comes next for Supermicro?
For the full fiscal year, the company expects sales between $23.5 billion and $25 billion, down from its previous guidance of between $26 billion and $30 billion. With Supermicro significantly reducing its sales guidance for the year, it might be surprising to see the stock rallying this week -- but there's another major catalyst on the near horizon.
With its preliminary Q2 update, Supermicro confirmed it was on track to submit its delayed 10-K report to the Securities and Exchange Commission by Feb. 25. If it delivers a report absent of meaningful downward sales and earnings revisions for results it already published in the last fiscal year, the stock could rise far above current pricing levels -- but it's still risky.
