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Luke Kawa

Super Micro falls after warning it still hasn’t fixed its accounting problems

Super Micro’s accounting issues aren’t fully behind it.

“We have identified material weaknesses in our internal control over financial reporting, which could, if not remediated, adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner,” its 10-K filing said, released after the close on Thursday.

“We expect to continue to face many of the risks and challenges related to previously being delinquent in our SEC reporting obligations,” management added. “We may fail to remediate material weaknesses in our internal control over financial reporting and other material weaknesses may be identified in the future, which could adversely affect the accuracy and timing of our financial reporting.”

Super Micro Computer noted that its failure to deliver financials on time has put downward pressure on its share price in the past. The stock is down just over 3% in Friday morning trading.

Shares of the AI server company cratered last year and early into 2025 amid concerns over how it compiles its financials. The inability to deliver filings in a timely fashion nearly saw the stock delisted from the Nasdaq.

Late last August, Super Micro announced that it was delaying the filing of its annual report while it assessed internal controls over its accounting. That news came one day after short seller Hindenberg Research had published a report alleging accounting irregularities at the company. At the end of October, Ernst & Young resigned as its auditor, saying it had questions “about whether the Company demonstrates a commitment to integrity and ethical values consistent with” best business practices around internal controls.

Super Micro ultimately announced BDO USA as its new auditor, said that an internal review found no management misconduct, and was able to file its annual report at the last minute in February in order to stay listed on the Nasdaq.

We’ve discussed in the past that Super Micro is a rare breed in today’s market: a company that is tethered to the AI theme, but screens as (relatively) cheap.

It trades at an enterprise value to expected 12-month sales ratio of less than 0.8x, compared to 5.4x for the S&P 500 technology hardware and equipment industry group and 3.4x for the S&P 500 as a whole.

At this point, it’s tough to say that low multiple isn’t a direct result of the accounting cloud that continues to hang over the company and management’s persistent inability to date to deliver on the sales growth it’s been targeting.

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Jon Keegan

CrowdStrike beats on Q3 revenue and earnings

CrowdStrike eked out beats on both earnings and revenue for the third quarter, while also raising its full-year guidance.

The cybersecurity company reported earnings of $0.96 per share, beating analysts’ consensus estimate of $0.94 per share.

The company saw $1.23 billion in sales for the quarter, up 22% year on year, beating analysts’ expectation of $1.21 billion in sales. The company reported a net loss of about $34 million.

Subscription revenue was $1.17 billion, up 21% year on year.

Shares were little changed in after-hours trading. The stock is up nearly 50% since the start of the year.

The company’s annual recurring revenue reached $4.92 billion as of October 31, up 23% year on year. The analyst consensus was $4.895 billion.

The company raised its fiscal year 2026 guidance for revenue to between $4.8 billion to $4.81 billion (previously $4.75 billion to $4.81 billion), and upped its outlook for adjusted earnings per share to a range of $3.70 to $3.72 (previously $3.60 to $3.72).

Burt Podbere, CrowdStrike’s CFO, wrote in the press release:

“We delivered outstanding third quarter results, exceeding expectations across all guided metrics. Total revenue growth accelerated to 22% year-over-year, and we delivered record cash flow from operations of $398 million and record Q3 free cash flow of $296 million. We are capitalizing on the AI-driven demand environment as customers consolidate on the Falcon platform, driving our pipeline to an all-time high.”

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Luke Kawa

Marvell Technology soars after CEO targets $10 billion in revenues next year


Marvell Technology initially fell in after-hours trading after the chip company posted Q3 results modestly ahead of estimates with Q4 guidance in line with analysts’ expectations, but turned those losses into massive gains thanks to positive commentary on next year’s sales outlook.

On the earnings call, CEO Matt Murphy said that sales could eclipse $10 billion in its upcoming fiscal year, while analysts had penciled in a forecast below $9.5 billion.

That solid anticipated pick-up in sales is being driven by Marvell’s custom chip division, where Murphy touted recent customer wins including an “emerging hyperscaler.”

“We expect our custom business, roughly a quarter of our overall data center revenue, to grow by at least 20% next year,” he said.

While custom chips sales have been a relatively lumpy line item for Marvell, Murphy doesn’t think that will be the case going forward, saying that there won’t be any more “air pockets.”

The Q3 results:

  • Net revenue: $2.075 billion (compared to estimates for $2.06 billion)

  • Adjusted earnings per share: $0.76 (estimate: $0.74)

For Q4, management offered guidance for net revenues to come in at $2.2 billion (plus or minus 5%) with adjusted EPS of $0.79 (plus or minus $0.05). That’s virtually bang in line with Wall Street’s call for $2.19 billion and $0.79, respectively.

Along with these results, Marvell announced plans to buy Celestial AI, a company that uses light to move data between chips, for at least $3.25 billion in cash and stock. The purchase price could go up by as much as $2.25 billion if Celestial’s cumulative revenues reach at least $2 billion by the end of Marvell’s fiscal 2029 (roughly speaking, calendar year 2028).

The chip stock has been on a solid run recently, thanks in large part to a wave of investor enthusiasm over custom chips spurred by the launch of Google’s Gemini 3. Marvell works with Amazon as a codesigning partner for its custom chips, including providing connectivity infrastructure for the Trainium3 model, which was publicly launched on Tuesday.

That being said, Marvell has been one of the worst chip stocks this year, down about 15% year to date ahead of these results.

Tasha Matsumoto
9h
Megacap tech drives stocks higher; bitcoin rebounds

Speculative stocks and bitcoin rebounded as traders’ risk appetite resumed.

Dennis Rodman (R) of the Chicago Bulls grabs a rebound from Karl Malone (L) of the Utah Jazz 01 June during the second half of game one of the NBA Finals at the United Center in Chicago, Illinois.
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Matt Phillips

Morgan Stanley upgrades Tempus AI to “overweight”

Morgan Stanley analysts gave Tempus AI an “overweight” rating — essentially a “buy” — and a raised their price target to $85 from $80, writing in a note published late Monday that despite being “a relatively new player, the company has already established itself as one of the top providers of precision oncology testing.”

As part of their reasoning, analysts spotlighted faster-than-expected growth in Tempus’ hereditary cancer risk-testing business, which it acquired through the purchase of Ambry Genetics in a deal that closed earlier this year.

Morgan Stanley also suggested there could be upside in Tempus’ relatively small data and services unit, which sells de-identified patient data pulled from its testing archive for use in pharmaceutical drug trials and other applications.

Despite being consistently unprofitable since its IPO last year, Tempus has been winning over Wall Street analysts.

Of the 17 covering the stock, 10 have “buy” ratings — or their equivalent — on Tempus, up from six in June.

Tempus has seen its share price more than double this year.

Wall Street 2026 outlook and S&P 500 forecasts (binoculars)

Wall Street has great expectations for the next year in the stock market

Stock watchers are pretty bullish about the coming year — as they typically are — with eyes on the Fed and whether the AI boom will still have legs. BofA is a little skeptical.

Matt Phillips12h

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