Super Micro Computer’s SMCI third-quarter fiscal 2024 results, scheduled to be released on Apr 30, are likely to reflect strength in its Server and Storage Systems segment.
The segment has been the key catalyst for the company backed by its robust storage systems offerings.
Revenues from the segment were $3.44 billion in the second quarter of fiscal 2024. The figure accounted for 94% of total revenues and exhibited year-over-year growth of 107%.
The Zacks Consensus Estimate for third-quarter fiscal 2024 Server and Storage Systems revenues is pegged at $3.6 billion, indicating a significant jump from the year-ago quarter’s reported figure of $1.2 billion.
Click here to know how SMCI’s overall fiscal third-quarter performance is likely to be.
Super Micro Computer, Inc. Price and Consensus
Super Micro Computer, Inc. price-consensus-chart | Super Micro Computer, Inc. Quote
Factors to Note
Increasing demand for the company’s AI servers due to growing OEM component orders is likely to have driven the segment’s top-line growth in the fiscal third quarter.
SMCI’s diversified AI portfolio is expected to have strengthened its footprint across enterprise customers, which is likely to have boosted standard server sales. This, in turn, is expected to have bolstered the Server and Storage Systems’ revenues.
The company’s robust portfolio of infrastructure solutions for 5G and telecom workloads, on the back of its continuing partnership with NVIDIA NVDA, is likely to have been beneficial for the segment’s sales during the fiscal third quarter. Moreover, strong momentum across its NVIDIA GPU product lines is likely to have contributed well.
SMCI’s robust building block architecture and operation/production automation systems, offering optimized rack-scale solutions with time-to-market and quality advantages to its customers, are expected to have further boosted the segment’s performance in the quarter under review.
Zacks Rank & Stocks to Consider
Currently, SMCI has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET and Dell Technologies DELL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 4.2% in the year-to-date period. The long-term earnings growth rate for ANET is 17.48%.
Shares of Dell Technologies have gained 52.3% in the year-to-date period. The long-term earnings growth rate for DELL is currently projected at 12%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
