Why Super Micro Computer Stock Is Skyrocketing Today

Super Micro Computer (NASDAQ: SMCI) stock is posting another day of big gains in Friday's trading. The server specialist's share price was up 9.5% as of 1:40 p.m. ET and had been up as much as 12.3% earlier today.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Supermicro's valuation is surging as investors continue to bet that the company will emerge from accounting controversies that have depressed its valuation over the last year. In addition to sustained momentum from other positive catalysts, the company's valuation is getting a boost from news that Meta Platforms plans to invest heavily in humanoid robots.

Supermicro stock soars on Meta's robot news

According to a report from Bloomberg today, Meta is on track to make big investments to develop humanoid robots. While they would likely have onboard computational systems, they will likely also use cloud-based artificial intelligence (AI) software. That could be a very positive demand indicator for Supermicro.

Meta Platforms is a Supermicro customer that has purchased large servers. To support its new robotics programs, the company will likely continue spending heavily to build its AI data center infrastructure. That could mean Supermicro will see more large orders from the tech giant in the not-too-distant future.

What comes next for Supermicro?

For the full fiscal year, the company expects sales between $23.5 billion and $25 billion, down from its previous guidance of between $26 billion and $30 billion. With Supermicro significantly reducing its sales guidance for the year, it might be surprising to see the stock rallying this week -- but there's another major catalyst on the near horizon.

With its preliminary Q2 update, Supermicro confirmed it was on track to submit its delayed 10-K report to the Securities and Exchange Commission by Feb. 25. If it delivers a report absent of meaningful downward sales and earnings revisions for results it already published in the last fiscal year, the stock could rise far above current pricing levels -- but it's still risky.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $350,809!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,792!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $562,853!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 3, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.