Key Points
- Super Micro Computer (NASDAQ: SMCI) shares surged nearly 20% on July 22, 2023, after the company pre-announced strong preliminary results, estimating second-quarter revenue between $11 billion and $12.5 billion, about double from the previous year.
- The projected gross margin rose significantly to a range of 15% to 17%, compared to prior guidance of 8.2% to 8.4%.
- Despite the positive news, Supermicro’s past controversies, including a recent raid of its Taiwan offices for suspected smuggling, raise concerns regarding its investment appeal compared to Nvidia (NASDAQ: NVDA), which remains favored for its stronger market position and margins.
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