Podcast Summary
Nvidia earnings: Nvidia's Q2 earnings exceeded expectations with a 122% revenue growth YoY and 68 cents adjusted EPS, driven by strong data center sales and optimism for Hopper and Blackwell. However, the stock declined post-earnings.
Nvidia's fiscal second quarter earnings report surpassed expectations with a revenue growth of 122% year over year and adjusted earnings of 68 cents per share. The tech giant's data center revenues exceeded estimates, and the CEO expressed optimism about the demand for Hopper and upcoming product, Blackwell. However, the stock experienced a post-earnings decline, marking the smallest beat in about a year and a half. Meanwhile, Super Microcomputer faced a setback as it announced it would not be able to file its annual report on time due to ongoing assessments of its internal controls over financial reporting.
SMCI financial reporting: Investor uncertainty surrounds SMCI due to delayed 10-K filing and allegations of accounting manipulation, leading to lowered price targets and decreased analyst confidence.
Super Micro Computer (SMCI) is facing increased scrutiny from investors following a delayed 10-K filing and allegations of accounting manipulation from short-seller Hindenburg Research. As a result, several analysts have lowered their price targets for the stock, despite SMCI's strong fundamentals and impressive growth. Wells Fargo, for instance, reduced its target from $650 to $375 based on a lower PE ratio. The lack of transparency surrounding the 10-K delay and the similarities between the Hindenburg report and an earlier short report from Swiss Point Management have raised concerns among investors. However, some analysts remain optimistic about SMCI, with eight upward revisions in the last 90 days compared to seven downwards. Overall, the uncertainty surrounding SMCI's financial reporting has created a sense of unease among investors, despite the company's solid underlying business.