The Super Micro Computer Inc. logo displayed on a smartphone screen (Thomas Fuller/Getty Images)

Super Micro surges on progress hitching its wagon to Nvidia’s rocket ship

The mass proliferation of Nvidia’s Blackwell chip and Super Micro’s server solutions go hand in hand.

2/18/25 11:44AM

The ramp higher in shares of Super Micro Computer continues as traders continue to hope that a rapidly approaching hurdle will be cleared, allowing for rapid growth in revenues as the AI data center boom displays staying power. The company is up double digits as of 11:10 a.m. ET to lead all S&P 500 constituents.

By all accounts, demand for Nvidia’s relatively new Blackwell GPU continues to exceed supply. Super Micro is aiming to hitch its wagon to this chip star by creating server infrastructure to utilize these Blackwell chips in a data center environment. In early February, Super Micro said that its server infrastructure to support these advanced semiconductors had reached full production availability.

All the while, Super Micro’s management has yet to file the necessary reports with the Nasdaq to avoid delisting, with a due date of February 25. Its business update pointed to a relatively sluggish outlook through July, but with guidance for a boom in revenue growth thereafter. For its fiscal 2026 (July 2025 through June 2026), management is targeting revenues of $40 billion, up from about $24.25 billion for the 12 months prior.

If delays in rolling out its infrastructure for Blackwell, rather than the accounting issues swirling around the company, have been the proximate cause for its recently underwhelming sales figures and lackluster near-term forecasts, then the company’s sales outlook may soon be at an all-systems-go inflection point (pardon the pun). After all, through all of Super Micro’s struggles, Nvidia CEO Jensen Huang kept referring to the server company as one of the chip designer’s “great partners.”

“We believe delays in Blackwell availability drove much of its $3-$5 billion cut in its 2025 sales view, and it should recover much of that in 2026,” Bloomberg Intelligence analyst Woo Jin Ho wrote. “Prior to the company's filing challenges, consensus was $34 billion in 2026 sales. Assuming its pipeline of deals stayed intact, baking in the deferred 2025 work implies $37-$39 billion for 2026.”

The consensus forecast for 2026 revenues among analysts polled by Bloomberg currently stands at about $33 billion, though a couple of these estimates are fairly stale.

The stock is on track for its second-best month on record.

Luke Kawa, Nia Warfield

S&P 500’s losing streak extends to three

The longest run in the red for the benchmark US stock index in over a month.

Bears awaken from hibernation at the zoo in Thale

Luke Kawa7h

Retail traders are dumping Bloom Energy after near 300% rally, says JPMorgan

Retail traders are swarming for the exits in fuel cell company Bloom Energy, causing what was once a near 300% year-to-date rally to sour.

JPMorgan strategists led by Arun Jain flagged that Bloom’s net imbalance — the balance of buying versus selling among retail traders — was exceptionally negative as of 11 a.m. ET, even worse than during its double-digit drop on Wednesday.

The fuel cell company, which counts Oracle among its customers, eclipsed a market cap in excess of $20 billion earlier this week despite generating less than $2 billion in sales over the past year.

Wall Street began to sound some alarm bells about the extent of Bloom’s run this week, with Jefferies downgrading its rating for the stock to “underperform” from “hold” on Wednesday while Bank of America analysts wrote, “We are still not buying into BE’s AI hype.”

Italian Hemp Growers Struggle With Anti-drug Laws

Investors are growing bullish on weed stocks. But why?

We spoke to ATB Capital Markets analyst Frederico Gomes about why institutional investors are growing bullish on cannabis.

J. Edward Moreno9h

Matt Phillips9h

Duolingo rises as executives talk up China opportunity

Duolingo posted a solid gain Thursday, the latest in a series of relatively light-on-news moves in the stock this month as it has regained some attention among options-trading retail investors.

There was a story in China’s official China Daily where executives laid out their plans for the language-learning app’s push into the People’s Republic, which has been a focus of Wall Street analysts on recent post-earnings conference calls.

China, where the company began doing business in 2018, is Duolingo’s fastest-growing market for its language-learning app. It’s also the largest source of test takers for its Duolingo English Test proficiency exam business, a recent focus for management spotlighted in its recent Duocon product announcements.

It’s hard to say if the China Daily story is the reason for today’s upswing in the stock, but given the necessities of working within a country controlled by the Chinese Communist Party, a relatively favorable story appearing in its international propaganda organ suggests a relatively healthy working relationship is developing there.

Duolingo to expand local team, products

Matt Phillips12h

Oklo dives after insider sale

Oklo dove Thursday after an SEC filing showed company director Michael Klein sold some $6.7 million in stock in transactions that, importantly, were not part of a pre-set insider sales plan.

Wall Street analysts forecast that the nuclear power startup will make losses for years to come. But the company’s ties to OpenAI CEO Sam Altman, who served as Oklo’s chairman until April, have helped make the stock a favorite of retail traders and a popular momentum play.

Even after today’s stumble, it’s up more than 400% this year and nearly 1,300% over the past 12 months.