Supermicro struck a $20 billion agreement with Saudi data center firm DataVolt during President Trump's recent Middle East visit. The partnership will deliver advanced GPU platforms to DataVolt over several years. Goldman Sachs calculates that this might bring Supermicro $5 billion yearly revenue with $200 million earnings. Despite this major contract, Goldman keeps its sell recommendation with a $24 price target compared to current trading near $47.
Raymond James appears more optimistic about the deal, maintaining an outperform rating for Supermicro stock. The computer hardware maker reported $4.6 billion in revenue last quarter, matching its previous guidance but falling short of analyst expectations. Supermicro expects between $5.6 billion and $6.4 billion for the current quarter, below market predictions of $6.81 billion. The company faces delays worth about $1 billion as customers evaluate new NVIDIA computer chips. Analysts believe this delayed revenue should appear in upcoming financial periods instead.
Raymond James appears more optimistic about the deal, maintaining an outperform rating for Supermicro stock. The computer hardware maker reported $4.6 billion in revenue last quarter, matching its previous guidance but falling short of analyst expectations. Supermicro expects between $5.6 billion and $6.4 billion for the current quarter, below market predictions of $6.81 billion. The company faces delays worth about $1 billion as customers evaluate new NVIDIA computer chips. Analysts believe this delayed revenue should appear in upcoming financial periods instead.
