Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.

Super Micro Computer, Inc.

Below is Validea's guru fundamental report for SUPER MICRO COMPUTER INC (SMCI). Of the 22 guru strategies we follow, SMCI rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
SUPER MICRO COMPUTER INC (SMCI) is a large-cap growth stock in the Computer Hardware industry. The rating using this strategy is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SUPER MICRO COMPUTER INC
More Information on Peter Lynch
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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SMCI Quantitative Stock Analysis - Peter Lynch

Super Micro Computer’s SMCI high-performance and energy-efficient servers are gaining traction among AI data centers, HPC and hyperscalers. This growth is reflected in SMCI’s server and storage system segmental revenues, which grew 10% year over year in the fourth quarter of fiscal 2025 to reach a $5.62 billion milestone and account for 97.6% of its top line.
SMCI has now added a 6U 20-Node MicroBlade server to its portfolio, which is a high-density server with AMD’s EPYC 4005 Series Processors integrated inside it. This high-density server can fit 20 mini servers in a single 6U unit, making its 48U rack hold as many as 160 servers. This compactness not only saves 70% space but it also cuts down on 95% cabling, and is 30% energy efficient compared to traditional servers.
The 6U 20-Node MicroBlade server is optimal for cloud services, web hosting, AI tasks, gaming and enterprise workloads. This system comes with built-in Ethernet switches for simpler networking, supports up to 16 CPU cores and 192GB DDR5 memory per server, and comes with strong security features, such as TPM 2.0 and AMD Infinity Guard.
Super Micro Computer is one of the first companies to bring new AI servers to market, including systems built on NVIDIA’s B200 and GB200 platforms. This early availability gives Super Micro Computer a big edge in a fast-moving AI market. SMCI’s other platforms, like direct liquid cooling, data center building blocks and allied support products, are helping it evolve from a server provider to a full-stack technology giant.
How Competitors Fare Against SMCI
Hewlett Packard Enterprise HPE and Dell Technologies DELL are two major providers of traditional and AI servers and cooling technologies. Dell offers liquid cooling architectures through its Apex and PowerEdge platforms, while HPE offers liquid-cooled HPC and AI servers through its HPE Cray and Apollo systems.
Hewlett Packard Enterprise offers a range of server services, including HPE ProLiant, HPE Synergy, HPE BladeSystem and HPE Moonshot servers. In the second quarter of fiscal 2025, Hewlett Packard Enterprise’s server segment sales grew 6% year over year due to strong demand for its AI servers.
Dell Technologies is a major supplier of servers with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts. However, Dell Technologies has not grown as quickly as SMCI in AI-specific systems; its ability to bundle hardware with services makes it a strong rival.
SMCI’s Price Performance, Valuation and Estimates
Shares of SMCI have gained 58.5% year to date compared with the Zacks Computer- Storage Devices industry’s growth of 50.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.84X, down from the industry’s average of 1.77X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMCI’s fiscal 2026 earnings implies a year-over-year rise of 23%, and the same for fiscal 2027 indicates growth of 33%. The estimates for fiscal 2026 and 2027 have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
SMCI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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SMCI Expands its Server Portfolio: Is it the New Growth Catalyst?

In early trading on Monday, shares of Super Micro Computer topped the list of the day's best performing components of the S&P 500 index, trading up 5.4%. Year to date, Super Micro Computer registers a 67.0% gain.
And the worst performing S&P 500 component thus far on the day is Newmont, trading down 4.9%. Newmont is showing a gain of 113.1% looking at the year to date performance.
Two other components making moves today are American Water Works, trading down 3.8%, and Keurig Dr Pepper, trading up 5.2% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Movers: NEM, SMCI

Peter Lynch Detailed Fundamental Analysis - SMCI

Key Points
AI deployment requires data center capacity, high-speed networking, optical links, and rack integration beyond the chip layer.
Real estate investment trusts (REITs) provide dividend income, while networking suppliers benefit from non-linear scaling as cluster sizes increase.
These seven stocks cover the AI infrastruture layer beyond pure compute.
Artificial intelligence (AI) doesn't run on chips alone. It runs on the networks that connect them, the real estate that houses them, and the systems that package them. AI deployment requires data center capacity, high-speed networking, optical interconnects, and rack-scale integration. The seven stocks below capture the infrastructure layer beyond chips and graphics processing units (GPUs).
Real estate investment trusts (REITs) generate dividend income while locking in multiyear leases. Networking and component suppliers benefit from bandwidth requirements that multiply with cluster size. Custom silicon designers provide alternatives to standard GPUs while supplying the switching chips that coordinate traffic. And system integrators package components into qualified racks that reduce deployment time.
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Read on to find out more about these seven top AI stocks.
The wholesale-capacity provider
Digital Realty Trust (NYSE: DLR) owns and operates more than 300 data centers across six continents, leasing wholesale colocation space and powered shell facilities to enterprise customers and hyperscalers. The company has posted record AI-driven leasing activity and raised guidance multiple times in 2025, as hyperscalers pre-commit capacity well ahead of power-on.
The REIT structure requires 90% of taxable income to be paid as dividends. At current levels, Digital Realty Trust yields a respectable 2.72% on an annualized basis.
The global interconnection hub
Equinix (NASDAQ: EQIX) operates more than 270 data centers globally, specializing in interconnection services and colocation for enterprises, cloud providers, and network operators. The REIT is ramping up capital expenditures to $4 billion to $5 billion annually through 2029 to add AI-ready capacity, including AI-optimized sites with liquid cooling, such as a Chennai, India facility designed for high-density GPU deployments. Equinix yields a healthy 2.23% at current levels.
The Ethernet fabric specialist
Arista Networks (NYSE: ANET) designs cloud networking switches and software for data centers, specializing in high-performance ethernet. The company's 400G and 800G platforms are being deployed in AI cluster fabrics, with new Etherlink products for in-rack GPU scale-up networks. Arista captures networking spend as clusters scale beyond single cabinets, with switches that prevent network bottlenecks from slowing training runs.
The optical transceiver provider
Coherent Corp. (NYSE: COHR) manufactures lasers, optical components, and networking products, including optical transceivers for data center networks. The company supplies drivers and transceivers for 800G, 1.6T, and 400G data center interconnect links that connect distributed AI infrastructure across buildings and campuses. As training and inference span multiple facilities, Coherent's optical components generate recurring revenue from high-bandwidth connections between sites.
The fiber and cabling manufacturer
Corning (NYSE: GLW) produces specialty glass, ceramics, and optical fiber for communications networks, with optical communications representing roughly one-third of revenue. The company supplies fiber-optic cable and connectivity for AI data center builds, where longer runs, higher fiber counts per rack, and denser architectures increase content per deployment. Analysts project significant 2025 growth in Corning's Optical segment driven by AI interconnect demand.
The custom accelerator designer
Broadcom (NASDAQ: AVGO) designs semiconductors and infrastructure software for data center, networking, and wireless markets. The company designs custom AI accelerators (XPUs) for hyperscalers seeking alternatives to off-the-shelf GPUs and supplies Ethernet switching chips for AI cluster networks. AI-related revenue has surged in recent quarters, as customers build proprietary silicon and need networking chips to connect processors without bottlenecks.
The rack-scale systems integrator
Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance server and storage systems. It focuses on application-optimized, liquid-cooled rack-scale deployments. The company is shipping complete AI systems for Nvidia's newest platforms, including GB300 NVL72 rack-scale and HGX B200/B300 systems.
Its packaging, thermal engineering, and factory integration turn parts into ready-to-deploy clusters. Customers pay a premium for these pre-validated racks to compress installation from months to weeks. Super Micro faces accounting scrutiny and delayed filings, which create execution and oversight risk, even as demand for integrated AI racks accelerates.
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George Budwell has positions in Nvidia. The Motley Fool has positions in and recommends Arista Networks, Digital Realty Trust, Equinix, and Nvidia. The Motley Fool recommends Broadcom, Coherent, and Corning. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

7 AI Infrastructure Stocks Beyond the Chips

Key Points
Susquehanna analyst Mehdi Hosseini recommends selling Super Micro Computer stock, and Rosenblatt analyst Kevin Cassidy recommends selling Intel stock.
Super Micro Computer is a leading supplier of artificial intelligence (AI) servers, but there is nothing particularly unique about the company.
Intel remains the market leader in central processing units, but the company has lost substantial market share due to execution missteps.
Year to date, Super Micro Computer (NASDAQ: SMCI) shares have added 57%, and Intel (NASDAQ: INTC) shares have advanced 90%. Excitement about artificial intelligence (AI) has been the main source of upside, especially because both companies work with Nvidia in some capacity. But these analysts expect the stocks to fall sharply in the next year:
Mehdi Hosseini at Susquehanna recommends selling Supermicro. His target of $15 per share implies 69% downside from its current share price of $48.
Kevin Cassidy at Rosenblatt Securities recommends selling Intel. His target of $14 per share implies 66% downside from its current share price of $41.
Here's what investors should know about these artificial intelligence stocks.
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Super Micro Computer: 69% implied downside
Supermicro designs and manufacturers storage systems, compute subsystems, and servers, including liquid cooling and rack-scale solutions, for artificial intelligence (AI). Supermicro was quick to establish a leadership position in AI servers, partly because its modular approach to product development lets it quickly build a wide range of servers when partners like Nvidia release new chips.
However, Mehdi Hosseini at Susquehanna says Supermicro lacks a competitive moat. It simply buys hardware from innovative companies like Nvidia and assemblers the parts into data center systems.
Other analysts have also voiced concerns about competition. Dell Technologies recently became a supplier for CoreWeave and xAI, two companies that have historically been Supermicro clients.
Supermicro reported disappointing financial results in the fourth quarter of fiscal 2025, which ended in June. Revenue increased 7% to $5.8 billion, gross margin dropped 70 basis points, and non-GAAP (generally accepted accounting principles) net income fell 24%. That margins have narrowed in the last several quarters is concerning because it implies Supermicro is losing pricing power, which itself supports the argument that the company lacks a competitive advantage.
Wall Street expects Supermicro's adjusted earnings to grow at 22% annually over the next two years. That makes the current valuation of 29 times earnings look reasonable. But analysts have overestimated in the past. Supermicro missed the consensus estimate by an average of 15% during the last five quarters.
I doubt shares will tumble 69%, but investors should look for AI stocks with stronger competitive advantages.
Intel: 66% implied downside
Intel reported encouraging third-quarter financial results, including a significant beat on the bottom line. Revenue rose 3% to $13.7 billion, and non-GAAP earnings were $0.23 per diluted share, up from a loss of $0.46 per diluted share last year. Management also said its partnership with Nvidia could help the company gain a foothold in the artificial intelligence race.
Intel remains the leader in central processing units (CPUs) for data center servers and personal computers, but execution missteps have cost the company a substantial amount of market share. Most concerning, Intel accounted for only 63% of server CPU shipments in the second quarter, meaning its market share has dropped 20 percentage points in the last four years as the AI boom has steered more business toward AMD and Arm.
Apart from the Nvidia partnership -- Nvidia invested $5 billion in Intel, and the companies will work together to develop custom data center products -- Intel shareholders recently got more good news. The company started making chips on its 18A process, albeit a little later than initially planned. The timing matters, because the 18A node will compete with Taiwan Semiconductor's N2 node, slated for production later this year.
Intel's foundry business -- a core piece of the turnaround strategy outlined by former CEO Pat Gelsinger in 2021 -- has yet to win a single major customer. This could mean Intel may have to cancel the development of its next-generation 14A node and exit the market for advanced CPUs. But a strong 18A production ramp could inspire enough confidence that companies choose to contract with Intel for foundry services.
Wall Street expects Intel's sales to grow at 2% annually over the next two years. In that context, the current price-to-sales ratio of 3.1 actually looks expensive.
I doubt shares will decline 66%, but I think investors should avoid the stock. Intel has consistently made poor decisions -- most notably, it passed on supplying Apple with iPhone chips in 2006, and passed on supplying OpenAI with data center hardware in 2017 -- and the company has so far failed to benefit from AI.
Should you invest $1,000 in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
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Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 AI Stocks Partnered With Nvidia to Sell Before They Fall 66% and 69%, According to Wall Street Analysts

Vertiv VRT is benefiting from strong order growth and a robust pipeline, reinforcing its position as a leader in the data center and AI infrastructure market. In the third quarter of 2025, Organic orders (excluding foreign exchange) rose 60% year over year, and the book-to-bill ratio was roughly 1.4x in the reported quarter.
The backlog at the end of the third quarter of 2025 was $9.5 billion. Backlog was 30% higher than 2024-end and up 12% from the end of the second quarter of 2025. In the third quarter, trailing twelve-month organic orders grew 21% compared with the prior-year period. This growth is largely driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.
Vertiv’s innovative portfolio has been a major growth driver. Vertiv recently introduced new OCP-aligned rack, power and cooling solutions. These include the SmartIT OCP rack, PowerIT PDUs, PowerBar Track and CoolChip Fluid Network manifolds. They are designed to support high-density, energy-efficient data centers and next-generation AI workloads.
The company’s rich partner base, which includes Ballard Power Systems, Compass Datacenters, NVIDIA, Oklo, Intel, ZincFive and Tecogen, has been noteworthy.
Vertiv’s partnership with NVIDIA is a plus. It aims to stay one generation ahead of NVIDIA, enabling efficient and scalable power solutions for next-generation AI data centers. Vertiv also confirmed its alignment with NVIDIA’s AI roadmap to deploy 800 VDC power architectures ahead of NVIDIA Kyber and Rubin Ultra platforms.
VRT Suffers From Stiff Competition
Vertiv’s AI infrastructure solutions face increasing competition from Hewlett Packard Enterprise HPE and Super Micro Computer SMCI, both of which are expanding their capabilities to serve hyperscale and enterprise AI data center deployments.
Hewlett-Packard Enterprise is expanding its footprint in the AI infrastructure through HPE Cray and ProLiant servers, bundled with liquid-cooled solutions and high-speed interconnects. In August, Hewlett-Packard Enterprise announced updates to its NVIDIA AI Computing by HPE portfolio. This includes HPE ProLiant Compute servers equipped with NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs in a 2U form factor.
Super Micro Computer is strengthening its position with end-to-end AI rack-scale systems that integrate compute, networking, storage and liquid cooling. In September, Super Micro Computer announced the start of high-volume shipments of its NVIDIA Blackwell Ultra systems and rack-scale Plug-and-Play solutions, including NVIDIA HGX B300 systems and GB300 NVL72 racks.
Vertiv’s Share Price Performance, Valuation, and Estimates
VRT’s shares have gained 61.3% year to date. The broader Zacks Computer & Technology sector has appreciated 23%, while the Zacks Computers - IT Services industry has plunged 13.4% in the same period.
VRT Stock's Performance
Image Source: Zacks Investment Research
Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 22.38X compared with the Computer and Technology sector’s 11.28X. VRT has a Value Score of D.
Price/Book
Image Source: Zacks Investment Research
The consensus mark for 2025 earnings is pegged at $3.84 per share, which has increased by a couple of pennies over the past 30 days. This indicates a 34.74% increase from the reported figure of 2024.
Vertiv Holdings Co. Price and Consensus
Vertiv currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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Vertiv Gains From Strong Orders: Is the Growth Thesis Strengthening?

In today's video, I discuss recent updates impacting Nvidia (NASDAQ: NVDA), Uber Technologies (NYSE: UBER), Intel (NASDAQ: INTC), and Super Micro Computer (NASDAQ: SMCI). To learn more, check out the short video, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of Oct. 23, 2025. The video was published on Oct. 23, 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Should you invest $1,000 in Nvidia right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $602,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,092!*
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Jose Najarro has positions in Nvidia and Uber Technologies. The Motley Fool has positions in and recommends Intel, Nvidia, and Uber Technologies. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia and Uber Announced AI Partnership

The S&P 500 Index ($SPX) (SPY) on Thursday closed up +0.58%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.31%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.88%. December E-mini S&P futures (ESZ25) rose +0.58%, and December E-mini Nasdaq futures (NQZ25) rose up +0.90%.
Stock indexes settled higher on Thursday, led by strength in energy producers after WTI crude oil jumped more than +5% when the US blacklisted state-run Rosneft PJSC and Lukoil PJSC, Russia’s largest oil producers, which threatens to tighten global oil supplies. Also, Dow Inc. rose more than +12% after reporting stronger-than-expected Q3 adjusted operating Ebitda. In addition, Honeywell International rose by more than +6% after reporting better-than-expected Q3 sales.
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Stocks also found support on Thursday’s US economic news that showed Sep existing home sales rose +1.5% m/m to a 7-month high of 4.06 million, right on expectations.
Stocks added to their gains Thursday afternoon as US-China trade tensions eased slightly when the White House confirmed that President Trump will meet directly with President Xi Jinping next Thursday on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea.
On the negative side, Molina Healthcare closed down more than -17% to lead health insurers lower after cutting its full-year adjusted EPS forecast. Also, Super Micro Computer (SMCI) closed down more than -8% after reporting weaker-than-expected Q1 preliminary sales.
Late Wednesday, the Trump administration announced sanctions on Rosneft PJSC and Lukoil PJSC, Russia’s biggest oil producers, due to “Russia’s lack of serious commitment to a peace process to end the war in Ukraine.” The new sanctions could bar foreign countries or companies from conducting business with the oil companies and cut them off from much of the international financial system.
The markets are focusing on progress in US-China trade talks, as President Trump reiterated his threat on Monday to boost tariffs on Chinese goods “if there isn’t a deal” by November 1. President Trump is scheduled to meet Chinese President Xi Jinping next Thursday on the sidelines of the Asia-Pacific Economic Cooperation conference in South Korea.
The US government shutdown continues into its fourth week, weighing on market sentiment and delaying key economic reports. The government shutdown is delaying the release of government reports, including the last four weeks of weekly initial unemployment claims and the September payroll report. The Bureau of Labor Statistics (BLS) said the September consumer price report, which was initially scheduled to be released last Wednesday, will be released this Friday. The White House has warned that if the government shutdown lingers, it would trigger widespread dismissals of employees in government programs that don’t align with President Trump’s priorities. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
The markets this week will focus on earnings results as the Q3 earnings season continues. Rising corporate earnings expectations are a bullish backdrop for stocks. According to Bloomberg Intelligence, 85% of the S&P 500 companies that have reported so far have beaten forecasts, on course for the best quarter since 2021. Also, more than 22% of companies in the S&P 500 that have provided guidance for their Q3 earnings results are expected to beat analysts’ expectations, the highest in a year. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from 6.4% in Q2.
The markets are pricing in a 99% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 closed up +0.52%. China’s Shanghai Composite closed up +0.22%. Japan’s Nikkei Stock 225 closed down -1.35%.
Interest Rates
December 10-year T-notes (ZNZ5) on Thursday closed down -10 ticks. The 10-year T-note yield rose +4.4 bp to 3.993%. T-notes were under pressure on Thursday amid inflation concerns, as a +5% surge in WTI crude oil prices boosted inflation expectations and pushed the 10-year breakeven inflation rate to a 1-week high of 2.31%. Also, Thursday’s rally in stocks curbed safe-haven demand for T-notes.
T-notes have ongoing support due to the ongoing US government shutdown, which could lead to additional job losses, reduced consumer spending, and a weakened US economy, potentially allowing the Fed to continue cutting interest rates.
European government bond yields moved higher on Thursday. The 10-year German bund yield rose +2.0 bp to 2.583%. The 10-year UK gilt yield rose +0.6 bp to 4.423%.
The Eurozone Oct consumer confidence indicator survey unexpectedly rose +0.7 to an 8-month high of -14.2, stronger than expectations of a decline to -15.0.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
Energy stocks and energy service providers moved higher on Thursday after the price of WTI crude oil surged more than +5% to a 2-week high. APA Corp (APA) closed up more than +7% and Valero Energy (VLO) closed up more than +6%. Also, Diamondback Energy (FANG), Marathon Petroleum (MPC), Halliburton (HAL), Baker Hughes (BKR), Devon Energy (DVN), and Phillips 66 (PSX) closed up more than +3%. In addition, Occidental Petroleum (OXY) and ConocoPhillips (COP) closed up more than +2%.
Quantum-computing stocks rallied on Thursday after the Wall Street Journal reported that the firms are in talks to give the Commerce Department equity stakes in exchange for federal funding. As a result, IonQ (IONQ), Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and Quantum Computing (QUBT) closed up more than +6%.
Molina Healthcare (MOH) closed down more than -17% to lead health insurers lower and losers in the S&P 500 after cutting its full-year adjusted EPS forecast to $14.00 from a previous estimate of $19.00, well below the consensus of $18.65. Also, Centene (CNC) closed down -5% and Oscar Health (OSCR) closed down more than -3%.
Dow Inc. (DOW) closed up more than +12% to lead gainers in the S&P 500 after reporting Q3 adjusted operating Ebitda of $868 million, well above the consensus of $759.7 million.
Las Vegas Sands (LVS) closed up more than +12% after reporting Q3 net revenue of $3.33 billion, above the consensus of $3.04 billion.
West Pharmaceutical Services (WST) closed up more than +10% after raising its full-year adjusted EPS estimate to $7.06-$7.11 from a previous forecast of $6.65-$6.85.
Dover Corp (DOV) closed up more than +8% after boosting its full-year adjusted EPS continuing operations estimate to $9.50-$9.60 from a previous estimate of $9.35-$9.55.
Honeywell International (HON) closed up more than +6% to lead gainers in the Dow Jones Industrials and Nasdaq 100 after reporting Q3 sales of $10.41 billion, stronger than the consensus of $10.15 billion.
TransUnion (TRU) closed up more than +3% after reporting Q3 adjusted EPS of $1.10, better than the consensus of $1.05.
Trucking companies moved lower Thursday, led by a -7% fall in Knight-Swift Transportation (KNX) after it forecasted Q4 adjusted EPS of 34 cents to 40 cents, the midpoint below the consensus of 39 cents. Saia Inc (SAIA) closed down more than -5% on the news, and Schneider National (SNDR) and Old Dominion Freight Line (ODFL) closed down more than -3%.
Super Micro Computer (SMCI) closed down more than -8% after reporting Q1 preliminary sales of $5.00 billion, well below the consensus of $6.49 billion.
Southwest Airlines (LUV) closed down by more than -6% after reporting Q3 operating revenue of $6.90 billion, below the consensus of $6.92 billion.
Roper Technologies (ROP) closed down more than -5% to lead losers in the Nasdaq 100 after forecasting Q4 adjusted EPS from continuing operations $5.11 to $5.16, weaker than the consensus of $5.24.
T-Mobile US (TMUS) closed down more than -3% after reporting Q3 revenue of $21.96 billion, weaker than the consensus of $21.98 billion.
Moderna (MRNA) closed down more than -2% after saying its vaccine to prevent cytomegalovirus, a common cause of birth defects, failed to meet its goal in a late-stage trial.
Earnings Reports(10/24/2025)
Booz Allen Hamilton Holding Co (BAH), First Hawaiian Inc (FHB), General Dynamics Corp (GD), Gentex Corp (GNTX), HCA Healthcare Inc (HCA), Illinois Tool Works Inc (ITW), Procter & Gamble Co/The (PG).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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