Super Micro forecasts quarterly revenue above estimates as AI powers server demand
2024.04.30 16:58
(Reuters) -Super Micro Computer forecast fourth-quarter revenue above estimates on Tuesday as it expects continued demand for its servers used in artificial intelligence applications.
Super Micro’s in-house liquid cooling solutions for servers have helped it get products to the market quicker than its competitors, who rely partly on third-party vendors. Its close relations with chip giants Nvidia (NASDAQ:) and Advanced Micro Devices (NASDAQ:), whose headquarters are less than 10 miles from Super Micro’s, help it receive early samples of chips to check prototypes, giving it further advantage over rivals. Super Micro’s stock, which has nearly tripled so far this year, was added to the last month.
The company expects fourth-quarter revenue between $5.1 billion and $5.5 billion, compared with estimates of $4.89 billion, according to LSEG data.
Revenue for the quarter ended March 31 stood at $3.85 billion, compared with estimates of $3.95 billion, according to LSEG data.
The company posted a net income of $402.5 million in the third quarter, compared with $85.9 million a year ago.
Gross margin for the three-month period was 15.5%, compared with 17.6%, a year ago, in line with analyst expectations.
Shares of the San Jose, California-based company were down 3% in volatile trading after the bell.
