Why Super Micro Computer Stock Is Falling Friday
Portfolio Pulse from Erica Kollmann
Super Micro Computer, Inc. (NASDAQ:SMCI) stock fell after announcing its Q3 earnings release date without preliminary estimates, raising concerns of poor financial results. The tech sector's weakness, highlighted by ASML's disappointing earnings and TSM's lowered outlook, also pressured semiconductor stocks. SMCI is expected to report earnings of $5.84 per share and revenue of $4.012 billion. Despite the drop, SMCI has an average 1-year price target of $991.93, indicating a potential upside.
April 19, 2024 | 6:48 pm
News sentiment analysis
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NEGATIVE IMPACT
ASML Holdings N.V. reported worse-than-expected earnings, contributing to the negative sentiment in the technology sector and impacting semiconductor stocks including SMCI.
ASML's worse-than-expected earnings report has contributed to the negative sentiment across the technology sector, likely influencing investor sentiment towards semiconductor stocks, including SMCI.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Super Micro Computer stock fell after not providing preliminary Q3 estimates, amidst a broader tech sector downturn influenced by ASML and TSM's reports.
The lack of preliminary estimates typically raises concerns about potential negative surprises in the upcoming earnings report. Combined with the current negative sentiment in the tech sector, this could lead to short-term pressure on SMCI's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
TSMC lowered its chip market outlook citing consumer weakness, which overshadowed its Q1 results and contributed to the negative sentiment in the semiconductor sector.
TSMC's revised chip market outlook and acknowledgment of consumer weakness have likely contributed to the broader negative sentiment in the semiconductor sector, affecting stocks like SMCI.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70