Super Micro shares surge after upbeat AI server forecast
Super Micro Computer has forecast fourth-quarter revenue and adjusted profit above Wall Street estimates on Tuesday, banking on robust demand for its artificial intelligence servers, sending its shares up 18% in extended trading, News.Az reports, citing Reuters.
The projections are likely to reassure investors following the US Justice Department in March charging three people linked to the company for allegedly helping smuggle billions of dollars’ worth of AI chips to China.
Super Micro projected fourth-quarter revenue in the range of $11 billion to $12.5 billion, compared with analysts’ average estimate of $11.07 billion, according to data compiled by LSEG.
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The company expects adjusted earnings per share in the range of 65 cents to 79 cents, above expectations of 55 cents.
Super Micro has been a major beneficiary of the AI boom, with its ability to quickly build and ship customized high-performance servers making it a preferred supplier for data centre operators and AI startups.
Demand has remained strong for its broader data centre and cloud software suite, CEO Charles Liang said on a post-earnings call.
The company’s facilities in Taiwan, Malaysia and the Netherlands are all “ramping up aggressively,” he added.
Combined AI spending from major tech firms Alphabet, Amazon, Microsoft and Meta Platforms is now projected to exceed $700 billion this year.
Super Micro’s relationships with key suppliers including Nvidia, AMD and Intel have not been affected by the charges, according to the company.
“There has been no change in allocations,” Chief Financial Officer David Weigand said during the earnings call.
He added that no one other than those named in the indictment was involved, and the company has launched an independent investigation into the case.
Super Micro reported revenue of $10.24 billion for the third quarter ended March 31, a rise of more than 122% year-on-year, though it fell short of analysts’ expectations of $12.33 billion.
By Nijat Babayev
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