Stocks to watch today include Hewlett Packard Enterprise (NYSE:HPE), Broadcom (NASDAQ:AVGO) Inc., and Super Micro Computer (NASDAQ:SMCI).
Hewlett Packard Enterprise, Broadcom Inc., and Super Micro Computer have all seen their shares rise in today’s trading session, catching the attention of investors and analysts alike.
HPE’s shares surged to a record high following impressive fiscal second-quarter results, driven by strong AI server sales and a backlog of $3.1 billion; Broadcom is expected to beat earnings estimates, with analysts revising their projections upward due to the company’s history of outperforming consensus estimates; and Super Micro Computer introduced a cutting-edge liquid-cooled AI data center optimized for NVIDIA AI Enterprise software, positioning itself as a leader in the AI hardware market and driving investor enthusiasm.
HPE Shares Reach Record High on AI Server Sales
Hewlett Packard Enterprise shares surged up to 16%, reaching a record high, after the company reported impressive fiscal second-quarter results. Revenue increased by 3.3% to $7.2 billion, surpassing Wall Street’s projection of a 2% decline to $6.82 billion. Excluding some items, profit was 42 cents per share, beating the average estimate of 39 cents.
The server business drove the strong performance, which generated $3.87 billion in revenue against an estimated $3.45 billion.
AI-oriented systems sales doubled from the first quarter to over $900 million, largely due to increased demand and better availability of high-powered semiconductors from Nvidia Corp (NASDAQ: NASDAQ:NVDA). CEO Antonio Neri highlighted that the market is starting to recognize the potential of HPE’s AI server business, which has a current backlog of $3.1 billion.
Broadcom Expected to Beat Earnings Estimates
The market expects Broadcom Inc. to report higher earnings and revenues for the quarter ended April 2024. Expected quarterly earnings are $10.79 per share, representing a 4.6% year-over-year increase, while revenues are expected to be $12.04 billion, up 37.9% from the year-ago quarter.
The company has a history of outperforming consensus estimates, beating EPS estimates for the last four quarters. The upcoming earnings report and optimistic revisions have contributed to the stock’s gain.
Super Micro Computer Introduces Liquid-Cooled AI Data Center
Super Micro Computer shares rose over 2% in premarket trading after introducing a “ready-to-deploy liquid-cooled AI data center” optimized for NVIDIA AI Enterprise software. The new AI data center is designed to accelerate generative AI adoption for enterprises across industries.
SMCI’s liquid-cooled systems, featuring NVIDIA’s Blackwell GPUs, deliver significantly improved AI performance and cost savings. In premarket trading, the stock price was $790.83 per share, up 2.5%. Super Micro Computer’s continued innovation in AI solutions, especially with enhanced performance metrics and cost efficiency, positions it as a leader in the AI hardware market.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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