On this episode of Stock Movers:
- Super Micro Computer (SMCI) which emerged as a favorite stock among artificial intelligence-obsessed investors last year, unexpectedly issued first-quarter guidance on Thursday that fell far short of Wall Street’s expectations. The server maker is now expecting to report roughly $5 billion in revenue for the first quarter ended Sept. 30, the San Jose, California-based company said, citing order “upgrades” that pushed some sales into the second quarter. Analysts had projected about $6.5 billion. The company’s shares slid as much as 7.6% in New York.
- Tesla (TSLA)'s profit plunged despite a record quarter of vehicle sales, reflecting ongoing strains on the automotive business that Chief Executive Officer Elon Musk is shifting focus away from. Musk spent much of Tesla’s third-quarter earnings call discussing ambitious but opaque initiatives, including humanoid robot and artificial intelligence programs, and also pleaded with investors to back his trillion-dollar compensation package. But he offered few details about how Tesla will revive its core business selling electric vehicles after a 40% drop in operating profit. Tesla shares dropped 3.9% at the start of premarket trading Thursday in New York. The stock is up almost 9% for the year, trailing the S&P 500 Index.
- Intel (INTC) shares surged after the chipmaker returned to profitability and gave an upbeat revenue forecast, suggesting that it’s making progress on a long and challenging comeback attempt. Fourth-quarter sales will be roughly $13.3 billion, the company said in a statement Thursday. Though that was just below Wall Street’s average estimate, some analysts were still including revenue from a unit that Intel just spun off — money that wasn’t part of the company’s forecast.
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