Analysts at Rosenblatt Securities anticipate a modest beat and raise scenario for Super Micro Computer (NASDAQ:SMCI) in their upcoming earnings report, tempered by constraints in the AI acceleration sector due to competition from Nvidia and the early ramp-up of AMD (NASDAQ:AMD)'s MI300.
However, the firm said in a note Monday that the wildcard lies in potential hyperscale engagements, "that may bring incremental allocation to the company".
Rosenblatt notes a positive outlook for SMCI amidst a significant industry shift towards datacenter liquid cooling. SMCI's earnings release is scheduled for Tuesday, April 30th, after the close.
Rosenblatt expects SMCI's revenue to meet their estimate of $3.90 billion, reflecting a 6.4% increase quarter-on-quarter and falling within the guided range of $3.70–$4.10 billion. Despite SMCI's failure to release preliminary earnings, analysts at the firm remain confident that results will align with guidance.
Non-GAAP gross margin is projected at 14.6%, with an expected EPS of $5.60, slightly below consensus. Looking ahead to the June quarter, revenue and Non-GAAP EPS estimates slightly trail consensus figures. Rosenblatt maintains a strong Buy rating on SMCI with a $1300 price target, highlighting its positioning in AI-driven infrastructure as a key factor for continued growth.