Super Micro, a leading server maker, has raised its full-year revenue forecast due to high demand for artificial intelligence (AI) technology. The company’s revenue surged by 200% year over year but fell slightly below the LSEG consensus. Despite this, Super Micro is optimistic about its future growth.
In the fiscal third quarter, Super Micro reported earnings per share of $6.65, surpassing the expected $5.78. However, its revenue of $3.85 billion was slightly lower than the anticipated $3.95 billion. The company’s net income for the quarter was $402.5 million, a significant increase from the previous year.
Looking ahead, Super Micro has revised its fiscal 2024 revenue guidance to be between $14.7 billion and $15.1 billion, showing a substantial year-over-year growth projection. CEO Charles Liang expressed confidence in the company’s growing customer base and emphasized the strong demand for AI technology.
Despite a temporary slip in share value after hours, Super Micro’s stock has seen a remarkable 205% increase this year, outperforming the S&P 500 index. The company’s strategic focus on AI technology has attracted investors, positioning it as a key player in the server market.
Super Micro faces competition from established IT providers like Hewlett Packard Enterprise but has shown potential as a leading provider of servers integrated with Nvidia graphics processing units for AI applications. The company’s inclusion in the S&P 500 in place of Whirlpool underscores its growing significance in the industry.
CEO Charles Liang highlighted the company’s commitment to innovation, including the development of liquid-cooled servers for improved energy efficiency. Super Micro’s supply chain is strengthening, and it remains poised to capitalize on the continued growth of AI technology in the coming years.
