The Super Micro Computer (NASDAQ: SMCI) stock price had a great performance in the first quarter. It jumped by over 265% in Q1, making it one of the best-performing companies in Wall Street. This rally brought its market valuation to about $60 billion and an addition to the S&P 500 index.
Super Micro Computer did well in Q1SMCI share price surged hard in the first quarter as demand for artificial intelligence (AI) products continued rising. Initially, the company jumped because of its strong financial results, which showed that its total revenue rose to $3.6 billion in Q4, up from $1.8 billion in the same quarter in 2022.
Its profitability also jumped as the net profit surged from $176 million to $296 million. Most importantly, the management boosted its forward guidance, noting that demand for its products was still rising.
The SMCI stock price rally accelerated after Nvidia published strong financial results. Its revenue soared from $6.5 billion in Q4’22 to over $22 billion. The company reiterated that it was seeing vast demand from data centers.
Analysts turned bullish on Super Micro after these two earnings reports. 10 of the 12 analysts covering the stock have a bullish rating. JP Morgan has an overweight rating on the stock while Northland Capital recently upgraded it to outperform. Bank of America has a buy rating while Goldman Sachs has a neutral rating.
SMCI stock analysis ahead of earnings
The next important catalyst for the SMCI share price will be the company’s quarterly earnings, which are scheduled for April 18th. These numbers will provide more colour about its performance during the quarter and whether demand was still rising.
Analysts expect the numbers to show that its revenue rose to $4.01 billion in Q1 followed by $4.81 billion in Q2. If this is correct, it will mean that the company is still seeing strong growth since its revenue in the same quarter in 2023 stood at less than $2 billion.
Therefore, there are two main levels to watch after the company publishes its results this month. If the numbers are strong, the stock could surge and retest its March high of $1,226, which is about 16% above the current level.
On the other hand, a revenue miss or forward guidance downgrade will see the SMCI share price retreat to $856, its lowest swing on March 20th.
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