Super Micro Earnings Guidance and Margin Headwinds

3 months ago

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"Super Micro here, a breakout quarter for them. We saw the stock was down roughly 11%. Bullish sense, they have a really strong guidance for quarter 2, 10 to 11 billion. Massive, massive growth thanks to the GB300 driven by a last minute GB300 upgrade. For the full year, they're expecting about $36 billion and securing about a 13 billion backlog on GB300 products. The big critical headwinds in my opinion are that margins plunged like crazy, with a 6.5% decline of 300 basis points—the lowest level in recent company history."

The commentary outlines Super Micro's strong earnings guidance amid significant headwinds from margin compression due to larger, lower-margin sales, leaving investors divided on its near-term outlook.

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