Super Micro Computer Inc., a partner of Nvidia Corp., has delivered an optimistic outlook for the chip industry. The company, known for its servers running artificial-intelligence chips, expects to report fiscal second-quarter results well above market expectations. According to the company's preliminary quarterly figures, they anticipate net sales of $3.6 billion to $3.65 billion, surpassing the $2.8 billion FactSet consensus.
Additionally, Super Micro now predicts adjusted earnings per share of $5.40 to $5.55 for the December quarter, exceeding analysts' previous projection of $4.51. This positive news is attributed to the strong market and high demand for the company's rack-scale, AI, and Total IT Solutions.
Despite a brief statement from the company regarding the matter, which mentions the upcoming earnings call on Jan. 29, investors have already shown confidence in Super Micro Computer Inc. Following the announcement, the company's shares rose over 6% in aftermarket trading.
Super Micro's promising results reflect the overall positive sentiment in the chip sector. Earlier today, Taiwan Semiconductor Manufacturing Co. (TSMC) provided an above-expectations forecast for the current quarter, with a favorable outlook for artificial-intelligence chips. This development influenced TSMC shares to surge nearly 10%, consequently boosting other chip stocks like Advanced Micro Devices Inc. (AMD), which closed at a record high.
Super Micro's stock has experienced remarkable growth, almost quadrupling over the past 12 months. The company's strategic focus on artificial intelligence has led them to generate more than half of their revenue from AI-related servers in the fiscal first quarter. Super Micro has recognized certain supply constraints, as highlighted during their last earnings call.
