Why Super Micro's Future May Hinge On Nvidia Earnings, Nasdaq Deadline (UPDATED)
Super Micro's stock price took a hit on Tuesday after Nvidia reported weaker-than-expected earnings.
The chipmaker's revenue and earnings per share both fell short of analysts' estimates, and Nvidia also issued a disappointing forecast for the current quarter.
Super Micro is a major supplier of servers and other hardware to Nvidia, and the company's stock is often seen as a barometer of Nvidia's health.
As a result, Super Micro's stock price fell by more than 5% on Tuesday.
The stock is now down by more than 20% year-to-date.
Super Micro is facing a number of challenges, including the ongoing global chip shortage and the rising cost of components.
The company is also facing competition from larger rivals such as Dell and Hewlett Packard Enterprise.
However, Super Micro is still a major player in the server market, and the company has a number of long-term growth opportunities.
One of the company's key growth drivers is the increasing demand for artificial intelligence (AI) and machine learning (ML).
These technologies require powerful servers, and Super Micro is well-positioned to meet this demand.
In addition, Super Micro is also benefiting from the growth of cloud computing.
Cloud providers need large numbers of servers, and Super Micro is a major supplier to this market.
Overall, Super Micro is a solid company with a number of long-term growth opportunities.
