AI server maker Supermicro’s stock gains on $60B order backlog and stronger margins
Artificial intelligence server maker Super Micro Computer Inc. told investors in a preliminary earnings forecast today that it has secured more than $60 billion worth of new orders for its products in its fiscal fourth quarter.
As a result, it now expects its gross margin to significantly exceed its prior forecast. The news sent shares of the server maker soaring more than 19% in extended trading.
Server makers like Supermicro, Dell Technologies Inc. and Hewlett Packard Enterprise Co. have emerged as some of the beneficiaries of the AI boom outside of prominent chipmakers like Nvidia Corp. Demand for their products has surged as enterprises and cloud infrastructure providers alike scramble to ramp up their investments in the hardware needed to run massive numbers of large language models and other intelligent applications.
In the case of Supermicro, it has benefitted from having an extremely close relationship with Nvidia and another chipmaker, Advanced Micro Devices Inc., which allows it to manufacture some of the most integrated AI servers on the market.
