Shares of Super Micro Computer Inc. (NASDAQ:SMCI) are up 7% in premarket trading, building on last week's robust performance, which saw the stock climb 32% following an earnings report that included optimistic revenue guidance for fiscal year 2026.
The company, known for its AI servers, had a mixed earnings report earlier in the week, with second quarter preliminary results falling short of Wall Street expectations and fiscal year 2025 guidance also disappointing investors. Despite this, Super Micro's fiscal year 2026 revenue forecast was strikingly positive, projecting a potential 70% increase to $40 billion compared to its fiscal year 2025, which covers July 2025 to June 2026. This outlook significantly surpassed analyst predictions.
This optimism is partly fueled by the company's commencement of the NVIDIA (NASDAQ:NVDA) Blackwell ramp, a key growth driver.
The company's forward-looking stance is further supported by a successful $700 million convertible senior notes offering, which addresses concerns about Super Micro's cash flow needed to fund the Blackwell ramp.
Investors seem to be looking past the short-term earnings miss, focusing instead on Super Micro's long-term financial prospects and strategic initiatives.
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