Super Micro Computer

Posted on | by Leon Hinde | Leave a Comment on Super Micro Computer

Super Micro Computer, reported its Q3 Fiscal Year 2026 results on May 5, 2026. While the stock saw a massive surge (up ~18-25%) immediately following the announcement, the report was a “beat and miss” that shifted investor focus toward profitability and long-term guidance.

Revenue: $10.24 billion, representing 123% year-over-year growth. However, this missed the analyst estimate of $12.4 billion

Full Year 2026 Revenue: Raised to a range of $38.9 billion to $40.4 billion (up from previous targets of ~$36B).

Key Growth Drivers

    • AI Infrastructure Dominance: AI GPU-related platforms (NVIDIA, AMD, Intel-based) contributed over 80% of total revenue.
    • Supply Chain & Deferred Revenue: The revenue miss was attributed to temporary supply chain constraints and “customer readiness” (data centers lacking sufficient power/networking to accept immediate delivery). Management noted a record-high backlog, suggesting that the missed revenue is deferred to future quarters rather than lost.
    • Direct Liquid Cooling (DLC): SMCI highlighted its leadership in liquid-cooled rack solutions, which are increasingly required for the latest high-power AI chips (like NVIDIA’s Blackwell).

    Balance Sheet & Risks

    • Negative Cash Flow: The company reported negative operating cash flow of $6.6 billion for the quarter, driven by aggressive inventory build-up ($11.1 billion) to support future deliveries.
    • Leverage: Net debt rose to roughly $7.5 billion as the company utilized convertible notes and credit lines to fund its massive working capital needs.
    • Legal Overhang: Investors remain cautious regarding an ongoing independent review of export-control matters and a class-action lawsuit (lead plaintiff deadline May 26, 2026), though management stated they do not currently expect a financial restatement.

    Sea Limited

    Posted on | by Leon Hinde | Leave a Comment on Sea Limited

    NAS:SE strong Q1 2026 earnings report, which featured a significant revenue beat and record-breaking performance across its core business segments.

    Despite an EPS miss ($0.67 vs. $0.77 expected), investors prioritized the massive top-line growth and evidence that Sea’s strategic investments in logistics and AI are improving unit economics. The company demonstrated its ability to scale rapidly while maintaining financial discipline in a competitive Southeast Asian and Latin American landscape.

    Significant Revenue Beat: Sea reported GAAP revenue of $7.1 billion, a 46.6% year-over-year increase, comfortably exceeding the analyst consensus of $6.45 billion.

    • EBITDA Milestone: The company achieved a quarterly adjusted EBITDA of $1.0 billion for the first time, representing a 9.3% increase.
    • Shopee Dominance: The e-commerce segment reached record highs with Gross Merchandise Value (GMV) of $37.3 billion (+30.2% YoY) and revenue of $4.5 billion (+44.4% YoY).

    Garena Recovery: The gaming division, Garena, delivered its strongest quarter since 2021, with bookings rising 20.1% to $931.4 million, fueled by the continued popularity of Free Fire*.

    • Fintech Growth: Its digital financial services arm, Monee, saw revenue surge 57.8% to $1.2 billion, with its loan book growing 71% while maintaining stable asset quality.

    Current Metrics (as of May 12-13, 2026)

    • Market Cap: ~$65.4 billion
    • P/E Ratio: ~38.1x (Trailing)