Analysts Expect Continued Growth Momentum for Super Micro Computer

Super Micro Computer (NASDAQ: SMCI) has been granted an extension by Nasdaq to delay filing its annual report for fiscal 2024 and its first-quarter report for 2025 until February 25, 2025. The delay follows a tumultuous period for the company triggered by a short-seller report in August, which dented investor confidence and weighed on the share price.

Despite these setbacks, Super Micro ended the fiscal year 2024 with year-on-year revenue growth of +110%, on the back of surging demand in artificial intelligence (AI). Visible Alpha consensus forecasts project a +69% year-on-year increase in net sales for 2025, reaching $25.2 billion, driven by investments in generative AI, large language models, and expanding cloud infrastructure needs. Earnings per share are also forecast to improve, rising from $2.01 in 2024 to $2.86 in 2025. Free cash flow, which is anticipated to recover from a $2.6 billion deficit in 2024 to a positive $1.1 billion next year, reflects a potential turnaround.

Super Micro continues to enhance its product offerings by incorporating advanced chips from Intel (NASDAQ: INTC), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA) into its SuperServer and GPU server lines. The company’s core server and storage systems segment, which generates the bulk of its revenue, is expected to grow by +70% year-on-year, and its subsystems and accessories segment is estimated to see revenues grow by +36%.