Super Micro Computer (SMCI) stock experienced a 10% drop in value in just 24 hours due to the recent tech selloff. However, all eyes are on August 6th, when the company is set to announce its latest quarterly earnings, which could potentially lead to a rebound in stock prices.
SMCI’s stock performance has been closely tied to its partnership with Nvidia (NVDA), as the company sells Nvidia GPUs to data centers. While this relationship has been beneficial, SMCI’s stock price took a hit when quarter-to-quarter sales growth slowed to 5% earlier this year.
Analysts are optimistic about SMCI’s upcoming earnings report, with expectations of $7.63 per share in net income for the June quarter. Despite the recent drop in stock value, SMCI has shown strong growth over the past year, making it a favorable investment option for many.
In conclusion, while SMCI’s stock may have experienced a temporary setback, the company’s solid earnings performance and strategic partnerships position it well for future growth. Investors should keep a close eye on the upcoming earnings report on August 6th to gauge the company’s financial health and potential for stock price recovery.