Super Micro sees quarterly revenue soaring on AI server boom

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% higher in after-hours ​trading.

Rivals Dell and HPE ⁠gained between 3.5% and 4.9%. Nvidia, the ‌AI chip giant, ‌was up 1.5%.

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% to 12.5%, versus the prior expectation of 10.4% to ‌10.8%, and above analysts' ​estimate of 10.15%, primarily ‌due to customer ⁠and product ​mix.

(Reporting by Pragyan Kalita in Bengaluru; Editing by ​Sahal Muhammed)

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