Super Micro stock pops 6.4% as earnings show booming AI demand
Super Micro Computer just reported revenue of $19.9 billion for the quarter.
The short version
- That is nearly four times higher than the same time last year.
- Adjusted earnings hit $1.81 per share, beating Wall Street estimates.
Check your portfolio if you hold tech stocks. Super Micro Computer, the computer hardware maker, just saw its shares jump 6.4 percent in after-hours trading following a massive earnings report. For the December quarter, Super Micro expects revenue between $19.5 billion and $21.5 billion, blowing past Wall Street estimates.
For the full fiscal year ending in June, management projected total sales between $72 billion and $82 billion. Revenue for the latest quarter came out to $19.9 billion, which is nearly four times what the company made a year before. Adjusted earnings per share reached $1.81, easily beating estimates for $1.23.
Super Micro builds customizable server racks and modular hardware setups to use in data centers. In recent years, the company has pivoted from being a basic server assembler to a total data-center solution provider. CFO Mark Long told MarketWatch that the biggest customers doing the largest deployments are choosing Super Micro.
Long was appointed to the finance chief role in October after a 2024 advisory committee recommendation to bring in new financial leadership. He added that Super Micro is being picky about its customers to avoid the debt turbulence hitting other parts of the artificial intelligence trade.
Gross margins for the quarter hit 12.8 percent, beating the 11 percent expected by analysts. The company has also expanded global production capacity to make hardware faster to deploy. That is good news for investors watching the massive server buildout across the tech sector.
Photo: SMCI, CC BY-SA 4.0, via Wikimedia Commons
