Super Micro pushes up full-year revenue forecast as it points to strong AI demand

Super Micro shares slipped in extended trading on Tuesday after the server maker reportedly slightly less revenue than expected for its fiscal third quarter, even as it gave optimistic revenue guidance.

Here’s how the company did in comparison with consensus:

Earnings per share: $6.65 adjusted, vs. $5.78 expected

Revenue: $3.85 billion, vs. $3.95 billion expected

The company’s revenue jumped 200% year over year in the quarter, which ended on March 31. That compared with a 103% increase in the previous quarter. Net income came out to $402.5 million, or $6.56 per share, compared with $85.8 million, or $1.53 per share, in the year-ago quarter.

CEO Charles Liang said that Super Micro is bumping up its fiscal 2024 revenue guidance. Analysts had expected a slightly lower figure.

Notwithstanding the after-hours move, Super Micro stock is up 205% so far this year, while the S&P 500 stock index has gained 6%. The company goes up against with legacy IT equipment providers such as Hewlett Packard Enterprise. But last year, investors were keen to bet that Super Micro could become a key provider of servers containing Nvidia graphics processing units for working with artificial intelligence models, pushing up the stock 246%. Liang said that he expects Super Micro to keep taking market share.

In March, Super Micro took the place of Whirlpool in the S&P 500.