Super Micro climbs after upbeat forecast shows robust AI demand
SMCI•Super Micro Computer rose 11.6% after forecasting first-quarter revenue of $18.5 billion to $19.5 billion and profit margins of 12% to 12.5%, both above expectations.
1. Forecast tops estimates
Super Micro Computer shares rose 11.6% to $36.25 after the AI server maker forecast first-quarter revenue of $18.5 billion to $19.5 billion, above analysts’ $15.23 billion estimate. It expects profit margins of 12% to 12.5%, compared with earlier expectations of 10.4% to 10.8%.
2. AI spending backdrop
The article says the data center buildout has benefited semiconductor and AI server makers. Microsoft, Google, Amazon and Meta are expected to spend more than $700 billion on AI infrastructure this year. Dell shares gained 5.1% and Hewlett Packard Enterprise shares rose 3.2%.
3. Investor focus
UBS Global Wealth Management strategists said investors are likely to focus on whether core business performance can continue to support elevated AI investment. Markets have been concerned about data center operators’ profitability as they issue debt to fund expansion while borrowing costs rise.
