Have you heard about Super Micro Computer’s impressive fiscal fourth-quarter earnings? The company reported earnings and revenue that exceeded expectations, showing a 34% rise in earnings per share to $3.51 and a 32% increase in revenue to $2.18 billion. Wall Street analysts predicted lower figures, with estimates of $2.91 per share in earnings and $1.98 billion in revenue. This strong performance puts Super Micro Computer in the spotlight, especially as it relates to the buzz around artificial intelligence (AI) stocks.
Super Micro Computer, also known as Supermicro, is based in San Jose, California, and specializes in producing computer servers, custom motherboards, networking gear, data storage systems, and power supplies used in internet data centers. With the growing demand for high-performance computer and networking gear driven by AI software, Supermicro has been collaborating with leading AI processor makers like Nvidia and Advanced Micro Devices. This partnership allows them to develop server and storage systems that cater specifically to the needs of AI applications.
Supermicro’s CEO, Charles Liang, expressed his excitement about the company’s new product lines and their application in AI. He stated that they have been seeing record levels of engagements, particularly for AI applications, and have secured several new and large design wins. They are even deploying some of the world’s leading GPU clusters. Liang also believes that with recent supply chain challenges behind them, Supermicro is well-positioned to gain market share and expand its scale.
Despite the positive earnings report, Super Micro Computer’s stock experienced a 13.4% drop in extended trading. Analysts were disappointed with the company’s fiscal 2024 outlook, which forecasted revenue of $10 billion, just 1% higher than the consensus estimate of $9.88 billion.
Before the earnings release, SMCI stock had an impressive year, soaring 321% in 2023. It remains one of the AI stocks to watch.
In conclusion, Super Micro Computer’s fiscal fourth-quarter earnings exceeded expectations, with strong growth in both earnings per share and revenue. The company’s collaboration with leading AI processor makers positions them well in the AI market, which is driving demand for their products. However, the disappointment in the fiscal 2024 outlook caused a decline in the stock’s value. Nonetheless, Super Micro Computer’s performance and involvement in the AI industry make it a stock worth keeping an eye on.
