Author: Adam Eckert

Super Micro Computer Inc (NASDAQ:SMCI) shares are in the spotlight Tuesday ahead of earnings. Here’s what you need to know before the report.

What To Know: Super Micro is set to report financial results for its fiscal fourth quarter after the market close on Tuesday. Analysts are looking for earnings of $8.10 per share and quarterly revenue of $5.314 billion, according to estimates from Benzinga Pro.

Last quarter, Super Micro beat earnings estimates, turning in earnings per share of $6.65 versus estimates of $5.78, but the company missed revenue estimates of $3.952 billion, delivering quarterly revenue of $3.85 billion.

“This year-over-year revenue growth of 200% and year-over-year non-GAAP EPS growth of 308% was well above our industry peers. Strong demand for AI rack scale PnP solutions, along with our team’s ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure,” Super Micro president and CEO Charles Liang said at the time.

Super Micro guided for fourth-quarter revenue of $5.1 billion to $5.5 billion and adjusted earnings of $7.62 to $8.42 per share. The company expects full-year revenue to be between $14.3 billion and $14.7 billion and full-year earnings to be between $23.29 and $24.09 per share.

Wedbush on Friday reiterated Super Micro with a Neutral rating and maintained a price target of $800. Here’s a look at other recent analyst changes leading up to earnings.

• Susquehanna analyst Mehdi Hosseini maintained Super Micro with a Negative rating and raised the price target from $285 to $325.

• Nomura analyst Donnie Teng downgraded Super Micro from Buy to Neutral and set a price target of $930.

• Goldman Sachs analyst Michael Ng maintained Super Micro with a Neutral and lowered the price target from $937 to $800.

• Rosenblatt analyst Hans Mosesmann maintained Super Micro with a Buy and a price target of $1,300.

SMCI Price Action: Super Micro shares are up approximately 112% year-to-date heading into the print. The stock was up 0.5% Tuesday morning, trading at $611.82 at the time of writing, per Benzinga Pro.

Photo: Shutterstock.

Arm Holdings Plc (NASDAQ:ARM) shares are trading higher Wednesday in sympathy with Advanced Micro Devices, Inc. (NASDAQ:AMD), which jumped after reporting strong financial results for the second quarter.

What Happened With AMD: AMD reported second-quarter revenue of $5.835 billion, beating analyst estimates of $5.724 billion. The chipmaker reported adjusted earnings of 69 cents per share, beating analyst estimates of 68 cents per share.

“We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue. Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors,” said Lisa Su, chair and CEO of AMD.

“The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business.”

AMD said it expects third-quarter revenue to be between $6.4 billion and $7 billion versus estimates of $6.61 billion. The company anticipates third-quarter gross margin of approximately 53.5%. AMD also said on its conference call that it expects GPU revenue to exceed $4.5 billion this year, up from its prior forecast of approximately $4 billion. 

AMD shares were up approximately 9% at the time of writing.

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Why It Matters: Several semiconductor names are moving higher alongside AMD as investors and analysts become more optimistic about chip earnings.

Arm is scheduled to report financial results for its fiscal first quarter after the market close on Wednesday. Analysts are looking for earnings of 34 cents per share and revenue of $902.691 million, according to estimates from Benzinga Pro.

Last quarter, Arm reported earnings of 36 cents per share and revenue of $928 million in its third quarter as a public company.

“This growth was driven by record royalty revenue as Armv9 adoption continues, especially in smartphones, server, and automotive markets. Revenue from licensing was also very strong, driven by multiple high-value agreements and the increased demand for Arm’s power-efficient technology for AI from data centers to edge computing,” Arm CEO Rene Haas said at the time.

It’s worth noting that HSBC analyst Frank Lee on Monday downgraded Arm from a Hold rating to a Reduce rating, just days ahead of earnings.

What Else: Some chip stocks may also be getting a lift after Reuters reported that the Biden administration plans to propose a new rule next month that would expand the United States’ ability to stop foreign exports of semiconductor manufacturing equipment to Chinese chipmakers.

The report indicates that shipments from allies that export key chipmaking equipment, including Japan, the Netherlands and South Korea, will be excluded from the new rule, limiting its impact, according to sources familiar with the matter.

ARM Price Action: Arm shares were up 7.21% at $142.55 at the time of writing, according to Benzinga Pro.

Photo: Shutterstock.

Boeing Co (NYSE:BA) is gearing up to report second-quarter earnings this week. Investors will be watching for any signs of a turnaround given the planemaker’s dismal performance year-to-date.

Here’s what you need to know ahead of the print.

What To Know: Boeing is set to report financial results for the second quarter before the market opens on Wednesday. Analysts are anticipating a quarterly loss of $1.76 per share and revenue of $17.266 billion, according to estimates from Benzinga Pro.

Boeing shares have been under pressure this year as the company has faced increased scrutiny ever since a door plug blew out of a 737 Max 9 plane midflight in early January. A series of subsequent flight incidents followed, keeping the attention on Boeing.

Boeing CEO Dave Calhoun said he will step down by the end of the year, given all the challenges the company faced under his leadership.

Last quarter, Boeing beat analyst estimates on the top and bottom lines as the company took comprehensive actions in its commercial business to strengthen quality and safety in response to the flight incidents.

“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” Calhoun said at the time.

“We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”

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Boeing already reported second-quarter deliveries. The company said it delivered 70 737 jets in the quarter, bringing total deliveries of the 737 up to 137 year-to-date. Boeing also delivered six 767s, seven 777s and nine 787s in the second quarter.

Earlier this month, Goldman Sachs issued a note calling for improved deliveries and production rates from Boeing moving into the back half of the year. The analyst firm noted recent feedback from suppliers suggested the company was keeping up with its delivery targets.

The S&P also laid out expectations in recent weeks for Boeing production and deliveries to increase in the second half of the year, according to headlines from Benzinga Pro. Boeing said last week that it resumed deliveries of the 737 Max to China.

Here’s a look at other recent analyst changes leading up to Boeing’s second-quarter results:

• Baird analyst Peter Arment maintained Boeing with an Outperform and lowered the price target from $300 to $240.

• Bernstein analyst Douglas Harned maintained Boeing with an Outperform and lowered the price target from $230 to $215.

• UBS analyst Gavin Parsons maintained Boeing with a Buy and lowered the price target from $250 to $240.

• BofA Securities analyst Ronald Epstein maintained Boeing with a Neutral and maintained a price target of $200.

• Deutsche Bank analyst Scott Deuschle maintained Boeing with a Buy and maintained a price target of $225.

BA Price Action: Boeing shares are down about 28% since the start of the year. The stock was up 1.02% at $187.33 at the time of publication Tuesday, according to Benzinga Pro.

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Photo: Courtesy of Boeing.

Advanced Micro Devices Inc (NASDAQ:AMD) shares are in the spotlight Tuesday ahead of earnings. Here’s a look at what investors need to know before the print.

What To Know: AMD is set to report second-quarter financial results after the market close on Tuesday. Analysts expect the company to report earnings of 68 cents per share on revenue of $5.724 billion, according to estimates from Benzinga Pro.

Last quarter, AMD beat analyst estimates on the top and bottom lines as its Data Center and Client segments each grew more than 80% year-over-year driven by a ramp of AI accelerator shipments.

“This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets. We are executing very well as we ramp our data center business and enable AI capabilities across our product portfolio,” AMD CEO Lisa Su said at the time.

AMD has met or exceeded analyst estimates in six straight quarters heading into Tuesday’s print, per Benzinga Pro data.

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Recent analyst coverage suggests AMD could be poised to report strong quarterly results. Here’s a look at analyst updates from the past two weeks leading up to earnings:

• Barclays analyst Tom O’Malley maintained AMD with an Overweight and lowered the price target from $235 to $180.

• Susquehanna analyst Christopher Rolland maintained AMD with a Positive and maintained $200 price target.

• Cantor Fitzgerald analyst C J Muse maintained AMD with an Overweight and raised the price target from $170 to $200.

• TD Cowen analyst Matthew Ramsay maintained AMD with a Buy and raised the price target from $200 to $210.

• Citigroup analyst Christopher Danely maintained AMD with a Buy and raised the price target from $176 to $210.

AMD Price Action: AMD shares were down 2.38% at $136.43 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

Microsoft Corp (NASDAQ:MSFT) shares are in the spotlight Tuesday ahead of earnings after the bell. Here’s what you need to know before the print.

What To Know: Microsoft is due to report fourth-quarter financial results after the market close on Tuesday. Analysts are looking for earnings of $2.93 per share and revenue of $64.357 billion, according to estimates from Benzinga Pro.

Last quarter, Microsoft beat analyst estimates on the top and bottom lines as revenue jumped 17% year-over-year driven by strong sales execution.

“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” Microsoft chairman and CEO Satya Nadella said at the time.

Microsoft has topped analyst estimates for earnings and revenue in five consecutive quarters heading into Tuesday’s print.

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Wedbush analyst Dan Ives will be looking to get a reading on the pace of AI adoption when Microsoft reports after the bell.

The Wedbush analyst said in a recent note that channel checks pointed to a potentially “robust” quarter for Microsoft, as the company is in “the driver’s seat” of the AI revolution. Ives maintained an Outperform rating and price target of $550 ahead of earnings.

Here’s a look at other recent analyst changes leading up to earnings:

• BMO Capital analyst Keith Bachman maintained Microsoft with an Outperform and raised the price target from $465 to $500.

• Piper Sandler analyst Brent Bracelin reiterated Microsoft with an Overweight and raised the price target from $465 to $485.

• Mizuho analyst Gregg Moskowitz maintained Microsoft with an Outperform and raised the price target from $450 to $480.

• BofA Securities analyst Brad Sills maintained Microsoft with a Buy and raised the price target from $480 to $510.

• TD Cowen analyst Derrick Wood maintained Microsoft with a Buy and raised the price target from $470 to $495.

MSFT Price Action: Microsoft shares were down 0.36% at $425.18 at the time of publication Tuesday morning, according to Benzinga Pro.

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Photo: courtesy of Microsoft.

NVIDIA Corp (NASDAQ:NVDA) stock has been a runaway freight train since the start of the year, outpacing a large majority of the market. The Jensen Huang-led company now has everyone else in its rearview mirror, as the chipmaker has claimed the title of most valuable public company in the world.

What To Know: Nvidia has pretty clearly been the biggest beneficiary of the AI boom as its chips have seen remarkable demand as tech players race to train and build their own AI models. The stock is hitting all-time highs on Tuesday and is up more than 170% since the start of the year.

Nvidia’s market cap climbed to $3.33 trillion on Tuesday, surpassing tech giant Microsoft Corp (NASDAQ:MSFT), making it the most valuable public company in the world, according to CNBC.

Nvidia overtook Apple Inc (NASDAQ:AAPL) in market cap earlier this month when the stock crossed the $3 trillion market cap level for the first time, buoyed by another strong earnings report in late May and a 10-for-1 stock split in early June.

Nvidia revenues climbed to record levels last quarter, driven by strong growth in data centers, which made up about 86% of the company’s total sales. Nvidia reportedly has about 80% market share for AI chips used in data centers.

Despite Nvidia’s unprecedented market cap surge to date, analysts remain bullish on the road ahead. Wells Fargo maintained Nvidia with an Overweight rating on Tuesday and raised the price target from $125 to $155. Rosenblatt maintained a Buy rating and lifted its price target from $140 to a new Street-high of $200.

Microsoft and Apple have also been beneficiaries of the AI boom, but the impact on the companies’ stock prices pales in comparison to Nvidia. Microsoft shares were up about 19% year-to-date at last check, while Apple shares were up about 11%, according to Benzinga Pro.

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NVDA Price Action: Nvidia shares were up 3.7% at $135.82 at the time of publication, per Benzinga Pro data.

Photo: Shutterstock.

Target Corp (NYSE:TGT) shares are trading lower. The company on Monday announced that it’s lowering prices on frequently shopped items just days ahead of earnings. Here’s what you need to know.

What To Know: Target said it will lower everyday regular prices on approximately 5,000 frequently shopped products. The retailer noted that it already reduced prices on about 1,500 items and plans to cut prices across thousands of other products over the course of the summer.

Price cuts will impact several everyday items like milk, meat, bread, soda, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels, pet food and more. 

“We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” said Rick Gomez, executive vice president and chief food, essentials and beauty officer at Target.

“Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs.”

The news comes as Target gears up to report earnings this week. Target is due to report its first-quarter financial results before the market opens on Wednesday. The retailer is expected to report earnings of $2.02 per share and revenue of $24.51 billion, according to estimates from Benzinga Pro.

Last quarter, Target beat analyst estimates on the top and bottom lines, turning in earnings of $2.98 per share versus estimates of $2.41 per share and revenue of $31.92 billion versus estimates of $31.83 billion.

Target guided for first-quarter adjusted earnings of $1.70 to $2.10 per share and said it expects comparable sales growth to be between 3% and 5%.

“Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time. We’ll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond,” CEO Brian Cornell said in March.

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TGT Price Action: Target shares were down 1.36% at $157.96 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Target.

Microsoft Corp (NASDAQ:MSFT) shares are in the spotlight Thursday ahead of earnings. Here’s what you need to know.

What To Know: Microsoft is set to report financial results for its fiscal third quarter after the market close on Thursday. The company is expected to report earnings of $2.82 per share and revenue of $60.804 billion, according to estimates from Benzinga Pro.

Last quarter, Microsoft beat analyst estimates on the top and bottom lines as total revenues jumped 18% on a year-over-year basis.

“We’ve moved from talking about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector,” Satya Nadella, chairman and CEO of Microsoft, said at the time.

On the conference call, Microsoft guided for a roughly 1 point decrease in Microsoft Cloud gross margin percentage and for capital expenditures to increase materially on a sequential basis.

Microsoft also guided for Productivity and Business Processes revenue growth of 10% to 12%, Office 365 revenue growth of approximately 15%, Office Consumer and LinkedIn revenue growth in the mid-to-high single-digits, Intelligent Cloud revenue growth between 18% and 19% and stable revenue growth in Azure.

Microsoft shares are facing some selling pressure ahead of earnings. Investors appear to be exercising caution after Meta fell more than 15% following its earnings report late Wednesday. Gross Domestic Product (GDP) also came in at 1.6% Thursday morning, below economist expectations of 2.5%, which appears to be sparking a broader selloff in markets.

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Here’s a look at some of the recent analyst changes:

• Stifel analyst Brad Reback maintained Microsoft with a Buy and a price target of $455.

• Citigroup analyst Tyler Radke maintained Microsoft with a Buy and lowered the price target from $480 to $475.

• Wells Fargo analyst Michael Turrin maintained Microsoft with an Overweight and raised the price target from $460 to $480.

• BMO Capital analyst Keith Bachman maintained Microsoft with an Outperform and raised the price target from $455 to $465.

• Morgan Stanley analyst Keith Weiss maintained Microsoft with an Overweight and raised the price target from $465 to $520.

MSFT Price Action: Microsoft shares were down 3.11% at $396.33 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

Meta Platforms Inc (NASDAQ:META) shares are trading higher Wednesday after the U.S. Senate passed a bill under which ByteDance would need to divest TikTok or face a ban in the U.S.

What Happened: Late Tuesday, Congress passed new legislation to ban or force a sale of popular social media platform TikTok, according to a report from the Washington Post.

The Senate approved the bill 79 to 18 as part of an aid package for Israel, Ukraine and Taiwan. The House already approved the bill over the weekend, so the proposal is now headed to President Joe Biden’s desk, who is expected to sign it this week.

Once the bill is signed, parent company ByteDance, which has been scrutinized for potential connections to the Chinese Communist Party, will have approximately nine months to sell TikTok. If the company fails to divest the popular app within that time, it will face a national ban.

The lawmakers who are pushing hard to implement restrictions on TikTok have cited concerns that ByteDance ownership may allow the Chinese government to access American user data.

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Meta Platforms is due to report first-quarter financial results after the market close on Wednesday. The company is expected to report earnings of $4.32 per share on revenue of $36.156 billion, according to estimates from Benzinga Pro.

Last quarter, Meta delivered an upside surprise when it reported better-than-expected results, initiated a quarterly dividend and announced a $50 billion increase to its buyback program.

Meta said it focused on increasing its operating discipline, delivering strong execution and improving advertising performance in 2023. In 2024, the company said it plans to build on its progress in each of those areas while advancing longer-term ambitions in AI and Reality Labs.

META Price Action: Meta shares were up 2.86% at $510.31 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

Netflix Inc (NASDAQ:NFLX) shares are in the spotlight Thursday ahead of earnings. Here’s what you need to know.

What To Know: Netflix is set to report first-quarter financial results after the bell on Thursday. Analysts expect the streaming giant to report earnings of $4.52 per share and revenue of $9.275 billion, according to estimates from Benzinga Pro.

Last quarter, Netflix turned in mixed results. The company beat revenue estimates of $8.72 billion, turning in revenue of $8.83 billion, but missed earnings estimates of $2.21 per share when it reported earnings of $2.11 per share.

The stock still moved higher as global paid memberships jumped 12.8% on a year-over-year basis and the company issued upbeat guidance. Netflix said it expects paid net additions to be down sequentially in the first quarter, but up again on a year-over-year basis.

Netflix guided for first-quarter revenue of $9.24 billion and first-quarter EPS of $4.49. The company also raised its 2024 operating margin forecast from a range of 22% to 23% to a new target of 24%.

Several analysts have raised price targets on the stock ahead of earnings. Here’s a look at all of the analyst changes over the last two weeks.

• BMO Capital analyst Brian Pitz reiterated Netflix with an Outperform and raised the price target from $638 to $713.

• Macquarie analyst Tim Nollen maintained Netflix with an Outperform and raised the price target from $595 to $685.

• Guggenheim analyst Michael Morris maintained Netflix with a Buy and raised the price target from $600 to $700.

• Morgan Stanley analyst Benjamin Swinburne maintained Netflix with an Overweight and raised the price target from $600 to $700.

• Piper Sandler analyst Thomas Champion maintained Netflix with a Neutral and raised the price target from $550 to $600.

• Barclays analyst Kannan Venkateshwar maintained Netflix with an Equal-Weight and raised the price target from $475 to $550.

• TD Cowen analyst John Blackledge maintained Netflix with a Buy and raised the price target from $600 to $725.

• JPMorgan analyst Doug Anmuth maintained Netflix with an Overweight and raised the price target from $610 to $650.

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NFLX Price Action: Netflix shares were down 0.34% at $611.60 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.