April 16, 2024

News and Political Commentary

Super Micro surges as sales projection fuels AI rally

1 min read

(Reuters) – Super Micro Computer’s stock jumped almost 10% to a record high in extended trade on Monday, extending its recent AI-fueled rally after the server seller projected stronger-than-expected quarterly sales.

The San Jose, California, company’s report after the bell also lifted shares of Nvidia by 1.2%, adding to a 2.3% gain during Monday’s session that saw the world’s most valuable chipmaker close at a record high.

Shares of Super Micro, which counts NASA and Japan’s NEC as customers, were last trading at $542, adding to a 4.5% increase during Monday’s session.

In its quarterly report, Super Micro said its March-quarter net sales would be between $3.7 billion and $4.1 billion. That range was far higher than the consensus analysts estimate of $2.87 billion, according to LSEG.

Super Micro’s stock surged 35% on Jan. 19 and helped reignite Wall Street’s rally in AI-related companies after the company pre-reported its December-quarter results well above estimates due to strong demand for AI servers.

Super Micro has more than tripled since May 2023 when CEO Charles Liang said the generative “AI momentum has benefited Super Micro greatly.”

(Reporting by Noel Randewich)

2024-01-29 17:34:48

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