SMCI, SOUN, C3.ai (AI) stocks brace for a crucial week

By:
on May 20, 2024
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  • Nvidia will publish its first quarter financial results this week.
  • Analysts expect its total revenue to come in at over $24.7 billion in Q1.
  • These results will have an impact on other AI stocks like SMCI, SOUN, and C3.ai.

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SoundHound (NASDAQ: SOUN), Super Micro Computer (SMCI), and C3.ai (AI) stock prices will be in focus this week as Nvidia (NVDA) publishes its financial results on Wednesday. These results will provide more colour about the state of the AI demand globally.

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Most importantly, the numbers will come at a time when most AI stocks have plunged hard from their highest point this year. SoundHound AI’s stock has dropped by over 50% from its highest level in 2024.

Similarly, SMCI, one of the hottest stocks of 2023, has crashed by over 27% while C3.ai has fallen by more than 30% from its highest level in February. Nvidia, on the other hand, is sitting near its all-time high of $973. 

Most analysts are optimistic about Nvidia’s earnings since there is still substantial demand for its semiconductors. A recent leaked report showed that Microsoft’s plan was to buy 1.8 million chips this year

Amazon is also spending billions of dollars to position its cloud business for the substantial A needs. Just recently, Saudi Arabia committed to invest about $40 billion in artificial intelligence. All these investments will benefit Nvidia, the biggest player in the GPU industry. 

SMCI vs soun VS c3

SMCI vs C3.ai vs SoundHound

The upcoming Nvidia earnings will have a direct impact on most AI stocks like SMCI, SOUN, and C3.ai. For example, SoundHound’s stock price jumped by over 40% on February 24th after the latest Nvidia earnings. SMCI soared by 30% as Nvidia’s shares jumped. 

Analysts expect that Nvidia’s sales growth continued in Q1. The average estimate among 37 analysts is that its sales will be $24.57 billion, a 277% increase from the same period in 2023. The highest estimate was over $26.87 billion. 

Nvidia’s shares will also react to the company’s forward guidance. Analysts expect that its full-year revenue guidance will be $112.36 billion, a 84% increase from the same point in 2023.

Nvidia has a long history of beating revenue and earnings guidance. Data by SeekingAlpha shows that the company has beaten its estimates in most of its earnings reports.

SMCI and other AI companies have published strong financial results recently. Super Micro Computer’s revenue rose to $3.85 billion in Q1, up from $1.28 billion in the same period in 2023. Its net profit jumped to $402 million from $85 million a year earlier.

SoundHound, which Nvidia invested in earlier this year, said that its revenue rose to $11.6 million in Q1, up from $6.7 million in Q1’23.

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