Oct 20 (Reuters) – Super Micro Computer said on Tuesday it expects quarterly revenue and profit margin well above Wall Street estimates as the server maker benefits from relentless AI data center demand, sending its shares 11.3% higher in after-hours trading.
Rivals Dell and HPE gained between 3.5% and 4.9%. Nvidia, the AI chip giant, was up 1.5%.
Big Tech’s race to build out data centers has made firms such as Super Micro among the biggest beneficiaries of the AI boom. The top four cloud-computing companies, a group that includes Microsoft, Google and Amazon, are expected to spend more than $700 billion on AI infrastructure this year.
That is showing up in Super Micro’s results.
The server maker expects revenue between $18.5 billion and $19.5 billion in the first quarter, compared with analysts’ average estimate of $15.23 billion, according to data compiled by LSEG. That expectation is also well above the company’s prior revenue forecast of $14.5 billion to $15.5 billion.
Super Micro also now expects gross margins to be in the range of 12% to 12.5%, versus the prior expectation of 10.4% to 10.8%, and above analysts’ estimate of 10.15%, primarily due to customer and product mix.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Sahal Muhammed)
