Super microcomputer (NASDAQ: SMCI) The shares are posting big gains in Thursday’s trading. The company’s stock price was up 10% as of 12:45 p.m. ET, according to data from S&P Global Market Intelligence.
While there was no company-specific news for the company, there were strong earnings numbers Broadcom (NASDAQ:AVGO)promising developments Oracleand continued momentum for artificial intelligence (AI) stocks are driving big gains for Super Micro’s share price today. This powerful server specialist’s stock is now up more than 200% this year.
Broadcom’s big quarter provides buy signals for Super Micro stock
High-profile AI stocks have often traded together this year. When a company delivers better-than-expected earnings results or wins a major new contract or partnership, that’s often enough to generate substantial profits for other players in the space. After Broadcom’s better-than-expected quarterly results, Super Micro Computer shares appear to be benefiting from this dynamic.
Broadcom, a connectivity semiconductor and software company, posted better-than-expected quarterly revenue and earnings performance after the market closed yesterday. The technology specialist reported non-GAAP (adjusted) earnings per share of $10.96 on revenue of $12.49 billion for the second quarter of the current fiscal year, which ended May 5. Sales increased by approximately 43% year-on-year during this period, with numbers rising. demand for AI-related technologies that will help drive growth. Meanwhile, the average analyst estimate should have seen the company post adjusted earnings per share of $10.84 on revenue of $12.01 billion. In addition to publishing revenue and profit figures, the company also raised its full-year performance outlook.
Oracle’s promising guidance provides a new buy signal
Broadcom’s beat-and-raise quarter followed a promising report from Oracle earlier this week. Although Oracle’s quarterly revenue and earnings numbers actually came in lower than Wall Street expected, the company’s management issued very encouraging guidance.
In particular, Oracle appears to be making significant wins in AI and the cloud infrastructure market. Because Super Micro is a supplier of high-end rack servers used for artificial intelligence, data centers and other accelerated computing applications, good news for Broadcom and Oracle this week also bodes well for Super Micro stock.
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Keith Noonan has no positions in the stocks mentioned. The Motley Fool holds positions in and recommends Oracle. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Why Super Micro Computer Stock is Rising Today was originally published by The Motley Fool
