Super Micro's Impressive Results Bring More Good News to the Chip Industry

Super Micro's Impressive Results Bring More Good News to the Chip Industry

 Super Micro Computer Inc. had some really good news to share about the chip industry on Thursday. This company works closely with Nvidia Corp., and they provide servers that use artificial-intelligence chips. They're expecting their fiscal second-quarter results to be much better than what people were thinking.

In their early report on Thursday, Super Micro said they anticipate having net sales between $3.6 billion and $3.65 billion. This is way ahead of what experts predicted at $2.8 billion. The experts' guess was also in line with what the company had said before.

Looking back to November 2023, some people were saying that even though Super Micro's stock was going up because of its partnership with Nvidia, there might be some risks that investors were missing.

Now, Super Micro is also saying they expect to have adjusted earnings per share between $5.40 and $5.55 for the December quarter. Analysts had thought it would be around $4.51, and the company's earlier estimate was between $4.40 and $4.88.

The company kept their announcement short and sweet, mentioning a "strong market and end customer demand for our rack-scale, AI and Total IT Solutions." They added that there will be an earnings call on January 29 after the stock market closes.

After this news, Super Micro's shares went up more than 6% in trading after hours on Thursday.

This is good news not just for Super Micro but also for the whole chip sector. Earlier on Thursday, Taiwan Semiconductor Manufacturing Co. gave a forecast for the current quarter that was better than expected. They also said positive things about the future of artificial-intelligence chips. This made their shares go up almost 10%, and it also helped other chip companies, like Advanced Micro Devices Inc., which ended the day at a record high.

Super Micro's shares have gone up a lot – almost four times – in the last year. People see it as a way to get in on the excitement around artificial intelligence. In the first quarter of their fiscal year, more than half of Super Micro's revenue came from servers related to AI. They did mention having some problems getting enough supplies in their last earnings call.

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