Super Micro Computer (SMCI)

SMCI guided higher again, even after doing so already very recently. It is riding a wave of spending, and remains cheap on most metrics and in comparison to peers. The party may not last forever, but it was a solid quarter with a solid outlook, and things look very good right now. The stock is up about 6% after market and is now up about 80% in 2024 alone. 
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Last year, it gained more than Nvidia, up 246%, and up 74% this year so far after it pre-announced much much better than expected sales on Jan. 18. Today, they released strong guidance for the next quarter and raised their full-year forecast substantially. Shares soared after hours today.

They raised guidance today, and shares jumped 3%, largely due to institutional buying. Tech analysis says shares built a base from September to this month till it caught up to its 200-day moving average. A great uptrend that saw shares break $300 recently with higher highs and higher lows. This could reach $487, based on data (last fall's pullback). Wait for a better entry point, not now.

SMCI is set to release earnings on January 30th but the company did release its updated guidance today for Q2. Net sales are expected to come in between $3.6B to $3.65B from what was previously expected at $2.7B to $2.9B. Adjusted EPS is expected to come in at $5.40 to $5.50, upped from the previous projection of $4.40 to $4.88. We continue to like SMCI and the upped guidance has added more fuel to a stock with already strong momentum. There is some concern than margins are being squeezed with higher demand, but the demand is clearly there. Even with today's move it is only 22X earnings. It has excess cash, strong cash flow and EPS could rise 70% this year. We like it a lot. 
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High-performance servers and storage solutions. Competes with Dell and HP, but is smaller, more nimble, and faster to market. Targets enterprise data centres, AI, 5G, cloud, and edge. Nice runway. Buy in thirds here, at $270, and $260.

Is driven by gen-AI popularity which will only continue.

Is second to Nvidia as the way to play AI and he's very bullish AI.