- Instruments
- Sobre nosotros
- Por qué nosotros
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Server and storage solution manufacturer Super Micro Computer, Inc. (NASDAQ: SMCI) – better known as «Supermicro» – had an unusually dramatic leadup to March: it barely made Nasdaq’s deadline for filing its earnings with a couple of hours to spare.
The numbers, made available at long last, seem quite encouraging at first blush.
Note: This article serves as a continuation of the previous article1 based on the company’s «preliminary» results before the aforementioned dash to the finish line for filings. The threat of delisting can be considered over until or unless something rare and momentous is announced by the as-yet-ongoing U.S. Department of Justice (DoJ) investigation.
Trend Drilldown
As per the filed reports for the company’s FY 2024 and the first half of FY 2025, the company’s net sales are slowing down relative to past year’s trends:
Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at
Source: Company Information; Leverage Shares analysis
If current trends were to continue, growth in net sales is almost halved relative to past year by finishing FY 2025 with a 54% growth. Net income is trending to close the FY with a 22% growth as opposed to previous FY’s 68% while operating expenses could grow by 34% as opposed to previous FY’s 62%. Stock-Based Compensation (SBC) is only trending to grow by 26% unlike previous FY’s mammoth 319%.
SBC has been a significant factor within operating expenses which, as the article published in August last year2 indicated, has been weighing down pass-through to net income/earnings.
The trend established in FY 2024 with regard to elevated SBC continues on in the current FY so far:
Source: Company Information; Leverage Shares analysis
In FYs prior to 2024, SBC as a percentage of operating expenses had rarely touched the double-digit mark since 2015. This fundamentally changed in FY 2024, which continues in the current FY. However, as a share of net sales, the trend of it being near the 1% mark established since 2015 continues to prevail (with FY 2024 being an exception wherein the share doubled).
SBC’s main contributors continue to be Research & Development as well as Sales & Marketing.
The recently-published «preliminary» earnings article also highlighted a report from November contending that Nvidia, the company’s main partner for chips around which its solutions are built, had been seeking out alternatives for server and storage solutions from the likes of fellow Taiwanese compatriots Gigabyte and ASRock. The company’s breakdown of geographic share of revenue might hold a hint regarding this development:
Source: Company Information; Leverage Shares analysis
Since FY 2022, the U.S. rapidly climbed in prominence to the bottom line, presently accounting for about 70% of all revenue. Meanwhile, after about 3 years of decline, Europe can be seen as rising once again in prominence in FY 2025. However, in price-conscious and ultra-competitive Asia, the company is showing signs of a downturn. As the «preliminary» earnings article indicated, the company doesn’t lack production capacity in Asia. However, rationalizing total firmwide cost to the satisfaction of Asian clients might be proving to be challenging. The Asia market is one to watch, given the blossoming of data centers all over the continent.
In Conclusion
During the earnings call with the «preliminary» results, much ado was made of the fact that Nvidia’s Blackwell chip deployments would be instrumental in sales growth for the company. As the recently-published article about Nvidia’s earnings3 highlighted, the issues raised by the gaming community regarding the RTX-50 series of graphics cards – which are based on Blackwell architecture – might be early indicators of performance issues that the company’s corporate clients might face in the course of usage. If that happens, this will be a further strain on Nvidia’s gross margins that the launch of a new product already includes. However, in the event that next-generation Blackwell sales stall as Nvidia works to iron out issues, it’s likely that corporate clients will switch back to current-generation products since they’re matured products.
While Super Micro (or «Supermicro») might be in the same industry as Nvidia, its competitive moat is vastly different: unlike chipmakers, there is plenty of competition. The stalling of Blackwell sales is a compounding of problems over that possibly being faced by rising competition from rivals with more advantageous economies of cost (and, therefore, pricing structure).
As of the 4th of March, Nvidia’s Forward PE Ratio is 25.30 while the Trailing Twelve Month (TTM) PE Ratio is 38.82. Super Micro’s Forward PE Ratio is 9.76 and TTM PE Ratio is 15.11. Compared to the former, the latter hasn’t fallen as hard. However, the former is comparatively better-positioned among customers than the latter. A further rationalization of SMCI’s valuation isn’t entirely unreasonable.
Professional investors in Europe might find opportunities in the course of shifting convictions in SMCI by utilizing the 2x Super Micro Computer ETP to build tactical strategies during the upsides of the price trajectory.
Footnotes:
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Share this:
Manténgase en contacto
Al suscribirse aquí, acepta nuestra Política de privacidad y recibirá nuestros boletines. Puede darse de baja en cualquier momento siguiendo el enlace que se encuentra en la parte inferior de cada boletín.
Centro de Trading
Al suscribirse aquí, acepta nuestra Política de privacidad y recibirá nuestros boletines. Puede darse de baja en cualquier momento siguiendo el enlace que se encuentra en la parte inferior de cada boletín.
This is a marketing communication. Please refer to the Prospectus of the ETPs and to the KIID before making any final investment decisions.
This information originates from Investium Limited, which has been appointed as distributor of Leverage Shares products in Europe by Leverage Shares Management Company Limited (the “Arranger”). Investium Limited with registered address at 6 Nikou Georgiou Street, Office 302, 1095 Nicosia Cyprus, is a financial services provider regulated by the Cyprus Securities and Exchange Commission (CySEC).
The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice. Investium Limited and the Arranger (together referred as “Leverage Shares”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of Leverage Shares. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed.
All performance information is based on historical data and does not predict future returns. Investing is subject to risk, including the possible loss of principal. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Leverage Shares.
© Leverage Shares 2025
Never miss out on important announcements. Get premium content ahead of the crowd. Enjoy exclusive insights via the newsletter only
Never miss out on important announcements. Get premium content ahead of the crowd. Enjoy exclusive insights via the newsletter only.
INVESTOR TYPE:
LOCATION:
Spain (ES)
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
This website is accessible to retail investors in the EU for informational purposes only. Leverage Shares does not directly distribute to retail investors. Retail clients should not rely on any of the information provided and should seek independent financial advice.
Information contained in this website is intended only to provide general and preliminary information and does not constitute any legal or investment advice, an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
Information contained in this website is intended only to provide general and preliminary information to EU regulated firms such as Investment Intermediaries and Asset Managers. This information does not constitute an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
This website is accessible to retail investors in the UK for informational purposes only. Leverage Shares does not directly distribute to retail investors. Retail clients should not rely on any of the information provided and should seek assistance from an IFA for all investment guidance and advice.
Information contained in this website is intended only to provide general and preliminary information and does not constitute any legal or investment advice, an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
Information contained in this website is intended only to provide general and preliminary information to FCA regulated firms such as Independent Financial Advisors (IFAs) and Wealth Managers. This information does not constitute an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
This website is intended for U.S. residents.
The content on this website is for informational purposes only and is educational in nature.
The material contained on this website is not intended as a recommendation to buy, sell or hold any security or to adopt any investment strategy.
This website is intended for U.S. residents.
The content on this website is for informational purposes only and is educational in nature.
The material contained on this website is not intended as a recommendation to buy, sell or hold any security or to adopt any investment strategy.
