Super microcomputer (NASDAQ:SMCI) The stock makes big gains in Thursday trading. The company’s stock price was up 10% as of 12:45 p.m. ET, according to data from S&P Global Market Intelligence.
While there was no company-specific news for the company, strong earnings for Broadcom (NASDAQ:AVGO)promising developments for Oracle, and continued momentum in artificial intelligence (AI) stocks is generating big gains for Super Micro’s stock price today. The high-performance server specialist’s stock is now up more than 200% since the start of the year.
Broadcom’s Big Quarter Shows Buy Signals for Super Micro Stock
Top AI stocks have frequently traded in tandem this year. When a company performs better than expected or enters into a major new deal or partnership, it is often enough to generate substantial gains for others in the industry. In the wake of Broadcom’s better-than-expected quarterly results, Super Micro Computer stock seems to benefit from this dynamic.
Broadcom, a semiconductor and connectivity software company, reported better-than-expected quarterly sales and profits after the market closed yesterday. The technology specialist reported non-GAAP (adjusted) earnings per share of $10.96 on revenue of $12.49 billion for the second quarter of its current fiscal year, which ended May 5. Revenue grew about 43% year-over-year during the period, with growing demand for AI-related technologies helping. to stimulate growth. At the same time, the average analyst estimate was that the company would post adjusted earnings per share of $10.84 on revenue of $12.01 billion. In addition to posting higher sales and profits, the company also raised its performance outlook for the full year.
Oracle’s Promising Forecast Presents Another Buying Signal
Broadcom’s up-and-coming quarter follows a promising report from Oracle earlier in the week. Even though Oracle’s quarterly sales and profits fell short of Wall Street’s expectations, the company’s management issued very encouraging guidance.
In particular, Oracle appears to be achieving significant victories in the AI ​​and cloud infrastructure market. Given that Super Micro is a provider of high-end rack servers used for artificial intelligence, data centers and other accelerated computing applications, the good news for Broadcom and Oracle this week also bodes well for the Super Micro action.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds positions in Oracle and recommends. The Motley Fool recommends Broadcom. The Mad Motley has a disclosure policy.
Why Super Microcomputer Stock Is Rising Today was originally published by The Motley Fool
