:max_bytes(150000):strip_icc()/GettyImages-1231124954-fac4ab8390b34b8690301febddb0a92b.jpg "Super Micro Computer Shares Hit a Record High as Sales Soar on AI Demand")
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.
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