Super Micro forecasts revenue and margins far above estimates on AI demand

Super Micro Computer announced that it anticipates first-quarter revenue between $18.5 billion and $19.5 billion, surpassing the average analyst estimate of $15.23 billion compiled by LSEG. The company also expects gross margins to fall in the 12% to 12.5% range, up from its earlier 10.4%-10.8% outlook and above the consensus 10.15% figure. The guidance reflects robust demand for AI-focused servers as the largest cloud providers, including Microsoft, Google and Amazon, are slated to invest more than $700 billion in AI infrastructure this year.

Super Micro’s revised forecasts lifted its prior revenue target of $14.5-$15.5 billion. The news sent the stock up 11.3% in after-hours trading, with rivals Dell and HPE also posting gains of 3.5%-4.9%, while Nvidia rose 1.5%.