Super Micro expects first-quarter revenue above estimates
- On Tuesday, Super Micro Computer announced preliminary Q1 revenue of $18.5bn to $19.5bn, surpassing analysts' average estimate of $15 billion.
- Surging demand for gear to train and run AI tasks drove the revenue increase, with servers containing Nvidia chips preferred for most AI data centres.
- Gross margins beat prior guidance of 10.4 per cent to 10.8 per cent, with Super Micro now expecting 12 per cent to 12.5 per cent due to "customer and product mix."
- Shares gained 12 per cent in extended trading after the update, with the company scheduled to report full, audited results on November 3.
- Despite months of headlines about AI servers smuggled to China, an independent probe concluded senior management had no knowledge of the purported scheme.
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Taiex rebounds led by AI stocks as Supermicro raises sales outlook
Taipei, Oct. 21 (CNA) Shares in Taiwan bounced back Wednesday from a slump Tuesday with AI-related stocks in focus after U.S.-based AI server maker Super Micro Computer Inc. raised its sales forecast overnight on strong AI demand, dealers said.
Super Micro Computer (NYSE: SMC) beat its own expectations in the latest quarter as demand for its AI servers delivered significantly higher revenue and a better-than-expected gross margin. The stock rose double-digits on the preliminary numbers, and its peers also gained. Investors are, however, focused on the sustainability of the growth and how much profit and cash the company will retain from its rapidly expanding business.
Supermicro, a U.S. artificial intelligence (AI) server manufacturer, projected that its quarterly revenue would increase approximately 3.8-fold year-over-year, driven by rising demand for AI data centers. The company raised its revenue forecast by about 27% and revised its profitability outlook upward. This is interpreted as a signal that demand for server equipment remains strong, despite growing concerns regarding the scale of AI infrastructur…
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