Supermicro's Earnings Surge, Despite Scandals and Margin Woes

Supermicros earnings soared, with revenue doubling to $10.2 billion and adjusted EPS surging to $0.84, though sales and EPS missed estimates. Gross margins rebounded to 9.9% after hitting a low of 6.3%. Despite U.S. Justice Department indictments and margin squeezes, investors are excited about Supermicros AI data center position, trading at under 10.5x forward earnings estimates. The company guides fiscal Q4 revenue between $11-12.5 billion and full-year sales of $38.9-40.4 billion, citing supply shortages. However, ongoing scandals, thin margins, and competition from Nvidia and AMD may not make this a perfect AI bet. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/853234ee339dee79