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Super Micro Computer witnessed a surge of over 3% in its stock value on Tuesday following an impressive fiscal second-quarter earnings report, outpacing estimates and significantly enhancing its full-year revenue projections.
In the reported quarter, Super Micro achieved a revenue of $3.66 billion, surpassing analyst expectations of $3.06 billion. The company reported an adjusted EPS of $5.59, well above the projected $4.93 and even exceeding its own guidance provided earlier in January. Preliminary financial results released on January 18 hinted at an adjusted earnings range of $5.40 to $5.55 per share.
For the entire fiscal year, Super Micro revised its revenue guidance upward, now anticipating a range of $14.3 billion to $14.7 billion, compared to the initial range of $10 billion to $11 billion. The company forecasts net sales between $3.7 billion and $4.1 billion in the third fiscal quarter.
Super Micro reported a net income of $296 million in its second quarter, a significant increase from $176 million in the corresponding quarter of 2023.
Specializing in manufacturing computers used by companies as servers for applications like websites, data storage, and artificial intelligence (AI) algorithms, Super Micro boasts an impressive clientele, including major players in the AI sector such as Nvidia, AMD, and Intel.
CEO Charles Liang shared his optimism about the revolutionary impact of AI technology during an interview with CNBC’s Jim Cramer. Liang expressed his belief that AI’s influence will surpass that of the Industrial Revolution, with visible and invisible applications improving areas like autonomous driving, industry automation, education, and healthcare systems.
Super Micro’s shares have experienced remarkable growth, already surging over 81% year-to-date, following a 246% increase in 2023 and an 87% rise in 2022. It’s worth noting that the correct name of the CEO is Charles Liang, correcting an earlier misspelling.