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Yahoo
3 hours ago
- Business
- Yahoo
Wall Street Says Supermicro Stock Could Gain 60% in a Year
Super Micro Computer (SMCI) has weathered significant volatility in recent times, with its stock experiencing a rollercoaster ride. After reaching significant highs, the stock experienced steep declines due to a range of concerns, including allegations of accounting irregularities and a delay in filing its financial reports with the SEC. Nonetheless, SMCI stock has made an impressive recovery recently, climbing 50% year-to-date. 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Supermicro's stock came under heavy pressure following headlines that shook investor confidence. Allegations of accounting irregularities and a delay in filing annual reports sparked concerns about the possibility of delisting from the Nasdaq Exchange. The company eventually filed its financials, avoiding that outcome, but the damage to investor sentiment was already done. Adding to this were disappointing quarterly earnings. For its fiscal Q3 2025, Supermicro reported $4.6 billion in revenue, a 19% increase year-over-year but a 19% drop quarter-over-quarter. The results missed Wall Street's expectations, mainly due to customers holding back purchases amid uncertainty around new AI platform transitions, particularly Nvidia's (NVDA) move from Hopper to Blackwell GPU architecture. These delays contributed to the shortfall in expectations and added further pressure on the stock. These issues, however, now appear to be in the rearview mirror as those delays are beginning to turn into future growth opportunities. As customers resume spending, Supermicro appears poised to regain momentum. Furthermore, Supermicro recently announced a $20 billion partnership with Saudi Arabia-based DataVolt, which significantly boosted its stock. This deal strengthens the company's demand pipeline and will support future growth. Given these positive developments and continued investments in artificial intelligence (AI) infrastructure, SMCI stock is likely to trend higher. The highest price target for Supermicro stock is $70, courtesy of Loop Capital analyst Ananda Baruah. This target implies nearly 60% upside potential from here. Supermicro is well-positioned to benefit from secular tailwinds in the AI infrastructure market. The company specializes in building high-performance server and storage systems, many of which are now tailored specifically for AI workloads. This provides a significant runway for growth, as it strengthens the company's position to capitalize on AI demand. Thanks to the solid demand, over 70% of Supermicro's total revenue is now derived from AI GPU platforms, reflecting that the company could deliver significant growth as investments in AI continue to rise. Further, to meet the growing demand, Supermicro continues to expand its product portfolio. It has ramped up the production of its Data Center Building Block Solutions (DCBBS), which offer energy-efficient systems for next-generation computing. The company continues to roll out new products, including a range of air-cooled and liquid-cooled AI systems and racks. It has broadened its platform support to include AMD's newest AI accelerators. The expansion of SMCI's product portfolio is expected to help drive its market share higher. Supermicro is strengthening its leadership in the high-performance computing space with its technology to reduce environmental impact. The company's direct liquid cooling (DLC) technology helps lower energy costs, a critical factor as AI workloads become increasingly power-hungry. Furthermore, the rollout of its second-generation DLC-2 system will offer improved energy efficiency and thermal performance, which is expected to drive demand. Moreover, Supermicro's DCBBS reduces the time and complexity involved in building modern data centers. As the demand for scalable, plug-and-play infrastructure grows, DCBBS could become a significant growth driver for the company. The growing use of AI, which requires enhanced data center capabilities, will substantially increase demand for Supermicro's products. Supermicro's ability to design and deliver customized hardware solutions will help meet the specific needs of AI-driven workloads, strengthening its competitive positioning. Moreover, its focus on innovation, including energy-efficient green computing products and enhanced production of its DCBBS, positions it well to gain a higher market share. Analysts maintain a 'Moderate Buy' consensus rating on SMCI stock. However, given the strength of its product lineup and the booming demand in the AI and data center spaces, it wouldn't be surprising to see Supermicro's stock push toward the $70 mark in the near future. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
16 hours ago
- Business
- Yahoo
Datadog (DDOG) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Datadog (DDOG) was down 1.95% at $127.50. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%. The data analytics and cloud monitoring company's stock has climbed by 12.42% in the past month, exceeding the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%. Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. On that day, Datadog is projected to report earnings of $0.41 per share, which would represent a year-over-year decline of 4.65%. Our most recent consensus estimate is calling for quarterly revenue of $789.55 million, up 22.36% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.69 per share and revenue of $3.23 billion. These totals would mark changes of -7.14% and +20.17%, respectively, from last year. Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.1% lower. Datadog is currently sporting a Zacks Rank of #4 (Sell). In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 76.76. This expresses a premium compared to the average Forward P/E of 27.94 of its industry. We can also see that DDOG currently has a PEG ratio of 9.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices. The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 22% echelons of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow DDOG in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
21 hours ago
- Business
- CNBC
The Israel-Iran conflict and the other big thing that drove the stock market this week
It's been a tense and dynamic week for the world at large. The market action on Wall Street over the past four sessions was been anything but that. For the week, the S & P 500 lost 0.15%, the tech-heavy Nasdaq ticked up 0.21%, and the Dow Jones Industrial Average was basically flat, up a mere 0.02%. Beneath the surface, though, there was plenty of news for investors to digest. Here's a closer look at the biggest market themes during the holiday-shortened trading week. 1. Geopolitics: The major news story was — and still is — the intensifying war between Israel and Iran. The big question on everyone's mind is whether the U.S. will get involved. As of Friday, reports indicate that while President Donald Trump is actively reviewing options to attack Iran, nothing has been authorized. The White House has said Trump he will make a decision in the "next two weeks". As a result of the Israel-Iran conflict, investors spent the week keeping an extra close eye on the movement in safe-haven assets like gold and the dollar, as well as risk assets such as oil. Gold prices pulled back this week after their initial spike last Friday, which is when Israel's first attack on Iranian nuclear infrastructure jolted markets. The U.S. dollar index , meanwhile, strengthened this week but still remains near multiyear lows. Oil rose again for the week, with international benchmark Brent crude climbing nearly 4%. For those looking to gauge what the market thinks will happen with Iran, look to oil. The commodity is currently acting as something of proxy on the odds of the conflict intensifying and America directly entering the fray. 2. Fed updates: The other big theme of the week centered on the health of the U.S. economy in the lead up to Wednesday afternoon, when we got the Federal Reserve's latest interest rate decision and revised economic projections. Ultimately, the Fed kept its benchmark lending rate unchanged on Wednesday following its two-day policy meeting. The decision followed lackluster updates on the state of the consumer and the housing market , along with lower-than-expected inflation readings the week prior. As we outlined earlier this week , the Fed is in a tough spot when it comes to abiding by its dual mandate of ensuring price stability and low unemployment. The state of play requires nuance. On the one hand, there is evidence in support of rate cuts, namely some cracks in the consumer — even if the consumer has remained largely and impressively resilient — and the Fed's own updated outlook for lower real GDP growth and higher unemployment this year. On the other hand, the Fed is now expecting higher inflation this year than it did in March, which would support the need for higher interest rates. Given these dueling dynamics and the uncertainty around tariff impacts, the central bank's decision to keep interest rates steady makes sense. While the Fed certainly doesn't want to wait too long and make the same mistake we saw coming out of the Covid-19 pandemic, we must acknowledge that the causes of a potential rebound in inflation are different this time around. Tariffs will likely push up prices, but that may be a one-time increase, as opposed to the sustained inflation we saw exiting the pandemic, which was driven by massive supply chain disruptions and shifts in consumer behavior. As a result, we believe the apparent bias to be more worried about the job market and overall economic growth — and therefore cut rates later this year — makes sense, too. Indeed, the Fed's updated projections still pencil in two rate cuts in 2025, the same as in March despite the aforementioned revisions to its inflation and growth outlook. Fed Governor Christopher Waller made the case Friday that the cuts should start as early as July, arguing that the inflation risk posed by tariffs is not significant and ensuring resiliency in the labor market should be a higher priority. Waller's argument is basically that it's better to move now than wait for a jump in unemployment. Our biggest focus at the Club is staying nimble, given the highly volatile nature of geopolitics at the moment. No doubt, rate decisions are important to think about, but they're only one small part of the investing puzzle to navigate each day. For this reason, we continue to focus more on individual company fundamentals and industry trends rather than higher-level dynamics, important as they are to shaping our worldview. Cybersecurity stocks are one example that we highlighted this week. Another example would be the news we got from Club names Meta Platforms and Amazon this week on their artificial intelligence efforts. We think the implications that AI will have on the cost structures, revenue opportunities and efficiency gains should weigh far more heavily in the minds' of long-term investors than whether the Fed will cut in July or September. (Jim Cramer's Charitable Trust is long META, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Canada News.Net
a day ago
- Business
- Canada News.Net
Wall Street ends with whimper as investors fret over Israel-Itan conflict
NEW YORK, New YorK - U.S. stocks closed mixed on Friday, with gains and losses modest, as investors and traders weighed up the escalation of hostilities in the Middle East, and President Donald Trump's prevarications over whether or not to involve the U.S. in another war. "With so much uncertainty going on in this world, who really wants to go long over the weekend," Sam Stovall, chief investment strategist at CFRA Research told CNBC Friday. "If there's a calming down of the geopolitical activities, then you know that could be helpful," he said. Major U.S. indexes ended Friday's trading session with mixed results as investors weighed economic data and corporate earnings ahead of the weekend. The tech-heavy Nasdaq led declines, while the Dow Jones managed modest gains. Technology stocks faced pressure following mixed earnings reports, while defensive sectors helped the Dow end in positive territory. Trading volumes were moderate, with the S&P 500 seeing 4.936 billion shares change hands. Analysts noted cautious sentiment ahead of next week's key inflation data and Federal Reserve commentary. Key Market Moves Global Forex Markets Wrap Up Friday with U.S. Dollar Back on Top Friday's foreign exchange session saw the U.S. dollar gaining against all the major currencies. Here's a breakdown of Friday's latest FX rates: Key Currency Pairs EUR/USD (Euro/US Dollar): Rose to 1.1521 up 0.24 percent as the euro strengthened slightly. USD/JPY (US Dollar/Japanese Yen): Climbed to 146.11, gaining 0.46 percent amid continued dollar strength. USD/CAD (US Dollar/Canadian Dollar): Increased to 1.3732, up 0.25 percent as oil-linked currencies faced pressure. GBP/USD (British Pound/US Dollar): Edged lower to 1.3453, dipping 0.09 percent in cautious trading. USD/CHF (US Dollar/Swiss Franc): Advanced to 0.8176, rising 0.15 percent as the franc softened. AUD/USD (Australian Dollar/US Dollar): Fell to 0.6450, down 0.47 percent on weaker risk sentiment. NZD/USD (New Zealand Dollar/US Dollar): Dropped to 0.5965, declining 0.44 percent in tandem with broader commodity FX weakness. Global Markets Wrap Up Friday with Mixed Performance Friday's trading session saw mixed results across global indices, with some markets posting gains while others edged lower. Here's a detailed look at the closing figures: European markets showed resilience, with Germany's DAX leading gains, while Asian indices were mixed amid varied regional economic signals. India's Sensex stood out with a strong rally, whereas Australia and New Zealand saw slight declines. Canada S&P/TSX Composite (Canada): Finished nearly flat at 26,497.57, slipping just 8.43 points (-0.03 percent). UK and Europe FTSE 100 (UK): Closed at 8,774.65, down 17.15 points (-0.20 percent). DAX (Germany): Rose sharply to 23,350.55, gaining 293.17 points (+1.27 percent). CAC 40 (France): Ended at 7,589.66, up 36.21 points (+0.48 percent). EURO STOXX 50: Advanced to 5,233.58, adding 36.55 points (+0.70 percent). BEL 20 (Belgium): Climbed to 4,439.53, increasing by 27.82 points (+0.63 percent). Asia and Pacific Hang Seng (Hong Kong): Jumped to 23,530.48, up 292.74 points (+1.26 percent). Nikkei 225 (Japan): Dipped to 38,403.23, down 85.11 points (-0.22 percent). SSE Composite (China): Closed at 3,359.90, slipping 2.21 points (-0.07 percent). STI (Singapore): Slipped to 3,883.43, losing 10.75 points (-0.28 percent). S&P/ASX 200 (Australia): Fell to 8,505.50, down 18.20 points (-0.21 percent). All Ordinaries (Australia): Dropped to 8,723.50, declining by 17.90 points (-0.20 percent). S&P BSE SENSEX (India): Surged to 82,408.17, gaining 1,046.30 points (+1.29 percent). IDX Composite (Indonesia): Declined to 6,907.14, down 61.50 points (-0.88 percent). KLSE (Malaysia): Inched up to 1,502.74, rising 1.30 points (+0.09 percent). NZX 50 (New Zealand): Fell to 12,569.05, losing 58.27 points (-0.46 percent). KOSPI (South Korea): Rose to 3,021.84, up 44.10 points (+1.48 percent). TWSE (Taiwan): Gained slightly to 22,045.74, adding 42.24 points (+0.19 percent). Middle East Middle East markets were mostly closed on Friday and will re-open on Sunday. Africa Johannesburg All Share (South Africa): Ended at 5,202.45, up 23.46 points (+0.45 percent).
Yahoo
a day ago
- Business
- Yahoo
Advanced Micro Devices (AMD) Advances While Market Declines: Some Information for Investors
Advanced Micro Devices (AMD) ended the recent trading session at $128.24, demonstrating a +1.14% change from the preceding day's closing price. This change outpaced the S&P 500's 0.22% loss on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%. Coming into today, shares of the chipmaker had gained 14.52% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 0.45%. The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. In that report, analysts expect Advanced Micro Devices to post earnings of $0.54 per share. This would mark a year-over-year decline of 21.74%. Meanwhile, our latest consensus estimate is calling for revenue of $7.41 billion, up 27% from the prior-year quarter. For the full year, the Zacks Consensus Estimates project earnings of $3.92 per share and a revenue of $31.75 billion, demonstrating changes of +18.43% and +23.15%, respectively, from the preceding year. Investors should also note any recent changes to analyst estimates for Advanced Micro Devices. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.68% lower within the past month. At present, Advanced Micro Devices boasts a Zacks Rank of #3 (Hold). Investors should also note Advanced Micro Devices's current valuation metrics, including its Forward P/E ratio of 32.37. This denotes a premium relative to the industry average Forward P/E of 19.27. Investors should also note that AMD has a PEG ratio of 1.32 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.81. The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
