Analysis: Should You Invest in Super Micro Computer Stock Before Earnings Report?

Should You Buy Super Micro Computer Stock Before Tuesday?

The AI rockstar is poised to report earnings on Tuesday. Will the stock rally even higher? Super Micro Computer (NASDAQ: SMCI), also called Supermicro, provides high-performance servers built to withstand the rigors of artificial intelligence (AI) processing. The company has become a poster child of the AI boom and is scheduled to report the results for its fiscal 2024 third quarter (ended March 31) after the market close on Tuesday. AI investors will be sitting on the edge of their seats, as Supermicro could provide insight into the overall state of demand for AI.

What's in the cards for Supermicro on Tuesday

Demand for Super Micro's AI-focused server solutions has been unprecedented, leaving Wall Street scrambling to keep up with its soaring stock price and the accelerating demand for its products. Helping fuel that demand is Super Micro's partnerships with chip makers, including Nvidia, Advanced Micro Devices, and Intel, among others, giving the company nearly unfettered access to the chips needed for AI processing.

• Analysts expect revenue to surge 211% to $3.99 billion for the third quarter.
• Earnings per share (EPS) expected to increase by 263% to $5.84.
• Supermicro’s revenue more than doubled to $3.66 billion for the fiscal second quarter.

Should you buy Super Micro stock now or wait until after earnings?

For investors looking to own a piece of a company, trying to time the daily machinations of the stock market is a fool's errand. There are plenty of reasons to be optimistic over the long term. Supermicro is on the cutting edge of server design and has built strong relationships with chipmakers, assuring the company of a steady supply of AI-centric processors.