Super Micro Computer (SMCI) experienced significant gains in trading on Friday, with the server specialist’s stock price increasing by 9.5% as of 1:40 p.m. ET, following a peak rise of 12.3% earlier in the day.
Investors continue to show confidence in Supermicro, buoyed by expectations that the company will overcome accounting issues that have previously affected its valuation. The company’s stock is also benefiting from recent developments involving Meta Platforms’ investment in humanoid robots, which are seen as a potential positive demand driver for Supermicro.
According to a Bloomberg report, Meta is planning substantial investments in the development of humanoid robots, which may utilize both onboard computational systems and cloud-based artificial intelligence (AI) software. This development is viewed as a potential demand signal for Supermicro, as Meta, a Supermicro customer, has historically purchased large servers from the company. As Meta Platforms expands its AI data center infrastructure to support its robotics initiatives, Supermicro could see increased orders from the tech giant.
Supermicro has adjusted its sales expectations for the full fiscal year to a range between $23.5 billion and $25 billion, down from the previously anticipated $26 billion to $30 billion. Despite this lowered guidance, optimism regarding another significant catalyst on the horizon has been driving stock performance. The company has indicated in its preliminary Q2 update that it plans to file its delayed 10-K report with the Securities and Exchange Commission by February 25. Should this report reflect stable sales and earnings figures, with no major downward revisions from previous results, Supermicro’s stock may see substantial appreciation, although some risks remain.
