Updated version 2 - Driven by the surge in demand for AI servers, Super Micro Computer’s quarterly revenue soared.

Details after paragraph 5 and onwards have been supplemented

Reuters, October 20 - Server manufacturer Super Micro Computer (SMCI.O) said on Tuesday that thanks to sustained strong demand for artificial intelligence data centers, the company expects revenue and profit margins this quarter to far exceed Wall Street expectations, which pushed its share price up 11.3% in after-hours trading.

Rival Dell DELL.N and Hewlett Packard Enterprise HPE.N saw their share prices rise between 3.5% and 4.9%. AI chip giant NVIDIA NVDA.O saw its share price increase by 1.5%.

The rush by technology giants to expand their data centers has made companies like Super Micro Computer among the biggest beneficiaries of the artificial intelligence boom. Microsoft, Google, Amazon, and Meta are expected to spend over $700 billion this year on AI infrastructure.

This trend has already been reflected in Super Micro's financial statements.

Forecast released as AI stock sell-off continues

Last week, the share prices of companies affected by the construction of artificial intelligence data centers fell, after CoreWeave (CRWV.O)'s stock and bond prices fell ( (link)), plus the prospect of rising interest rates, sparking market concerns: heavily indebted operators may take longer than expected to achieve profitability.

S&P Global said on Monday that its estimates (link) of AI-related liabilities for the world’s largest technology companies may be higher than the known amounts.

According to data compiled by London Stock Exchange Group (LSEG), Super Micro said on Tuesday it expects first-quarter revenue to be between $18.5 billion and $19.5 billion, compared with analysts’ average expectations of $15.23 billion. This outlook is also well above the company’s previous revenue forecast of $14.5 billion to $15.5 billion.

The server manufacturer now expects gross margin to be between 12% and 12.5%, up from the previous forecast of 10.4% to 10.8%, and higher than analysts’ estimate of 10.15%, mainly due to changes in customer mix and product portfolio.

(link) WDC.O Last week, Super Micro Computer appointed former Western Digital executive Mark Long as Chief Financial Officer, after the company had been searching for nearly two years due to scrutiny of its financial and accounting practices. (link)

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