Super Micro sees quarterly revenue soaring on AI server boom
FILE PHOTO: Logos of Super Micro Computer are pictured at COMPUTEX Taipei in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang/File Photo
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Oct 20 : Super Micro Computer said on Tuesday it expects quarterly revenue and profit margin well above Wall Street estimates as the server maker benefits from relentless AI data center demand, sending its shares 11.3 per cent higher in after-hours trading.
Rivals Dell and HPE gained between 3.5 per cent and 4.9 per cent. Nvidia, the AI chip giant, was up 1.5 per cent.
Big Tech’s race to build out data centers has made firms such as Super Micro among the biggest beneficiaries of the AI boom. The top four cloud-computing companies, a group that includes Microsoft, Google and Amazon, are expected to spend more than $700 billion on AI infrastructure this year.
That is showing up in Super Micro’s results.
The server maker expects revenue between $18.5 billion and $19.5 billion in the first quarter, compared with analysts’ average estimate of $15.23 billion, according to data compiled by LSEG. That expectation is also well above the company’s prior revenue forecast of $14.5 billion to $15.5 billion.
Super Micro also now expects gross margins to be in the range of 12 per cent to 12.5 per cent, versus the prior expectation of 10.4 per cent to 10.8 per cent, and above analysts’ estimate of 10.15 per cent, primarily due to customer and product mix.
Source: Reuters
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