Applied Materials, Inc. (NASDAQ:AMAT) shares are trading marginally lower by 1.2% to $146.22 Wednesday afternoon amid weakness in semiconductor stocks. Weakness in the sector may be due to weakness in Super Micro Computer, which is down 23% Wednesday afternoon following earnings.
What Happened?
Super Micro Computer announced its second-quarter earnings at $3.51 per share, surpassing the analyst consensus estimate of $2.57 by 36.58%. This marks a 33.97% growth from earnings of $2.62 per share in the corresponding period last year.
The company’s second-quarter sales reached $2.19 billion, surpassing the analyst consensus estimate of $1.90 billion by 15.00%. This reflects a 33.64% increase from sales of $1.64 billion in the same period last year.
Super Micro Computer has projected its first-quarter adjusted EPS to be in the range of $2.75 to $3.50, which falls below the estimated value of $2.96. Additionally, the company expects its revenues for first-quarter to be within the range of $1.9 billion to $2 billion, lower than the estimated value of $2.03 billion.
What Else?
“Supermicro’s record revenue and 37% year-over-year growth for fiscal year 2023 validates our global leadership position in AI accelerated compute platforms,” stated Charles Liang, President and CEO of Supermicro.
“We continue to witness exceptional demand for AI and other advanced applications necessitating optimized rack-scale solutions. With our remarkable new design wins, expanding customer base, and robust backlog for our superior rack-scale Total AI & IT Solutions, we are well poised to sustain our growth trajectory.”
According to data from Benzinga Pro, Applied Materials has a 52-week high of $153.28 and a 52-week low of $71.12.
