$SMCI was up 15%, now down 11% on their earnings. 3 things: ...
$SMCI was up 15%, now down 11% on their earnings.
3 things:
1/ $SMCI is a hardware business with hardware margins. Their margins went down from 15 to 11% which is NOT good for their EPS which is why they missed badly on EPS estimates, likely why they are down.
2/ $SMCI was up multi-hundred %'s this year. Any miss on any numbers will get the street mad in this macro. It's still up 90% YTD on this drop.
3/ I care less about SMCI and more about what their progress means for $NVDA. If SMCI is rasing guidance by $3B, it means they need to provide more service for GPUs, meaning Nvidia is selling more GPUS. SMCI earnings are really irrelevant, but they do signal $NVDA continuing to beat and raise.
Nvidia has 70%+ margins as well compared to 15%, which is why they are able to print net income.
3 things:
1/ $SMCI is a hardware business with hardware margins. Their margins went down from 15 to 11% which is NOT good for their EPS which is why they missed badly on EPS estimates, likely why they are down.
2/ $SMCI was up multi-hundred %'s this year. Any miss on any numbers will get the street mad in this macro. It's still up 90% YTD on this drop.
3/ I care less about SMCI and more about what their progress means for $NVDA. If SMCI is rasing guidance by $3B, it means they need to provide more service for GPUs, meaning Nvidia is selling more GPUS. SMCI earnings are really irrelevant, but they do signal $NVDA continuing to beat and raise.
Nvidia has 70%+ margins as well compared to 15%, which is why they are able to print net income.
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