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Super Micro Computer (NASDAQ:SMCI) saw a nearly 5% surge in stock price during trading on Friday, contributing to approximately a 35% increase over the past month. This rise has been fueled by several factors, including a $20 billion partnership with Saudi data firm DataVolt and notable analyst upgrades. As of May 2025, about 20% of SMCI’s available shares were shorted, presenting the potential for a short squeeze.
Nvidia’s recent Q1 results, indicating strong sales of its new Blackwell GPUs—which accounted for 70% of its data center revenue—are also beneficial for SMCI, which supplies custom GPU servers integral to Nvidia’s infrastructure. The company reported a revenue increase from $9.3 billion to $21 billion over the last 12 months, demonstrating a 68.1% average annual growth rate over the last three years, outperforming the S&P 500’s 5.5% growth during the same period.
Despite strong revenue growth, SMCI’s profit margins are considerably lower than the industry average. The company reported an operating margin of 6.1% compared to the S&P 500 average of 13.2%. Furthermore, SMCI’s balance sheet is strong, with a debt-to-equity ratio of 9.7% and a cash-to-assets ratio of 23.6%, which indicates good financial stability.
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