Super Micro Computer: Why You Should Buy Before The Full Q3 Earnings Release (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• SMCI's preliminary Q3 FY25 results imply a revenue miss. But this is a timing delay, with sales expected to shift to Q4 FY25. There are no signs of demand issues.
• Lower gross margins are also likely to be a one-off due to inventory clearance and expedited delivery costs, which may actually confirm strong demand for new products.
• SMCI's valuations are reasonable near typical longer-term levels vs. its comps. And let's not lose sight of the bullish technicals vs. SPX500 near a key monthly support level.
• I expect a lot of the fears on structural revenue and margin issues may be abated after the full Q3 earnings release on 6 May.
• Keep an eye on NVIDIA's commentary on Blackwell GPU supply availabilities, as hiccups there can flow over to SMCI.

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