Investing.com — Super Micro Computer (NASDAQ: SMCI) shares spiked 13% in early U.S. trading after the server maker raised its fiscal first-quarter revenue outlook thanks to soaring demand for artificial intelligence data centers.
On Tuesday, the company said preliminary revenue is now expected to stand at $18.5 billion to $19.5 billion for the quarter ended September 30, up from its previous forecast of $14.5 billion to $15.5 billion. The midpoint of the revised range compares to analysts’ consensus estimate of $14.99 billion.
“[W]e believe [this reflects] rapidly increasing server demand and agentic AI tailwinds,” analysts at Mizuho said in a note.
Super Micro also lifted its gross margin outlook to 12.0% to 12.5%, versus 10.4% to 10.8% previously, attributing the improvement primarily to a more favorable customer and product mix.
The update offers relief to investors after Super Micro warned that its fiscal fourth-quarter revenue would come in near the low end of its forecast.
Jitters have also surrounded the rapid AI data-center buildout in recent days, powered largely by worries over a combination of heavy debt-fueled spending and elevated borrowing costs. Shares of names connected to AI data centers retreated last week, with neocloud CoreWeave and cloud computing player Oracle among the most high-profile underperformers.
Super Micro, which appointed former Western Digital executive Mark Long as its new Chief financial Officer last week, will release its full results on November 3.
(Scott Kanowsky contributed reporting)
Original Article
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