Super Micro Computer Shares Hit a Record High as Sales Soar on AI Demand
80
Key Takeaways
Super Micro Computer revenue more than doubled on surging demand for artificial intelligence products.
Second-quarter revenue and earnings at the server maker, an Nvidia partner, beat estimates.
Shares jumped to an all-time high and are up 600% in the past year.
Shares of Super Micro Computer (
SMCI
) surged to an all-time high Tuesday after the server maker posted better-than-expected quarterly results and raised its guidance for fiscal 2024 as it benefits from demand for
artificial intelligence
(AI) products.
Also known as Supermicro, the company, which has a
partnership with Nvidia
(
NVDA
), recorded a higher-than-forecast 71% year-on-year rise in its fiscal second-quarter earnings per share at $5.59. Revenue for the quarter, which ended December, doubled to a record $3.66 billion from $1.80 billion.
The company also raised its guidance for its fiscal 2024 year ending June 30 to a range of $14.3 billion to $14.7 billion from a previous range of $10 billion to $11 billion.
CEO Charles Liang said the company continued to add new partners, and its current end customers “continue to demand more Supermicro’s optimized AI computer platforms and rack-scale Total IT Solutions.” He said the company had continued see record demand for its AI systems from Nvidia, Intel (
INTC
), and Advanced Micro Devices (
AMD
).
Supermicro said it expects fiscal third-quarter net sales in the range of $3.7 billion to $4.1 billion and EPS at between $5.20 and $6.01.
Shares of Supermicro were 2% higher at $505.62 at around 1:00 p.m. ET Tuesday, after rising as high as $554.44 earlier in the session. The stock has gained 600% over the past year.
