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The market likes the vibe shift
Super Micro Computer is having one of those “wait, maybe the story is still alive” days. The stock jumped on Thursday after the company posted a third-quarter earnings beat, and traders also noticed short interest has been sliding. That’s basically the market saying: maybe don’t bet against the AI hardware name just yet.
Profit beat > revenue miss
Here’s the twisty part: revenue came in below Wall Street’s target, but adjusted EPS landed at 84 cents, comfortably ahead of the 62-cent consensus. In other words, the company didn’t exactly throw a revenue party, but it did keep more money in its pocket than expected — and that’s enough to make investors hit the buy button.
AI is still the whole game
More than 80% of quarterly revenue came from AI GPU-related platforms, which is Wall Street catnip right now. Super Micro also said it expects production capacity to top 6,000 high-performance racks per month, and it’s leaning on its deep ties to NVIDIA, AMD, and Intel to keep that machine humming.
Management also handed out a fourth-quarter outlook that came in above analyst expectations, with adjusted EPS guidance of 65 to 79 cents versus 55 cents on the Street. Revenue is projected as high as $12.5 billion, which is the kind of number that keeps the AI server trade very much alive.
Big picture: if you were waiting for SMCI to prove it still has some juice, this report was a pretty loud answer. The revenue miss matters, sure — but for now, the market is choosing to pay up for earnings power, AI demand, and a stock that’s still trying to claw its way back above the long-term trend.