Super Micro Computer jumps 9% on upbeat annual guidance
Server maker's forecast tops Wall Street estimates as demand for AI infrastructure strengthens. Shares extend gains after hours.
Super Micro Computer Inc. shares rose 9% in premarket trading on Tuesday after the server manufacturer issued annual guidance that surpassed analyst expectations.
The company projected revenue for the fiscal year ending June 30, 2025 in a range above current market forecasts, citing sustained demand for artificial intelligence (AI) infrastructure. Analysts polled by Refinitiv had expected revenue of $10.5 billion, while Super Micro’s guidance implied a figure closer to $11 billion.
Super Micro, a key supplier of high-performance servers to data centers, has benefited from the rapid expansion of AI workloads across industries. The company’s latest outlook reflects continued strength in orders for AI-optimized hardware, particularly from cloud providers and enterprise clients.
The stock’s premarket surge follows a 20% gain over the past month as investors bet on Super Micro’s role in the AI supply chain. The company has also expanded its manufacturing capacity to meet rising demand, though supply chain constraints remain a watchpoint for near-term execution.
Analysts at Wedbush reiterated an outperform rating on Super Micro, citing its "unique positioning" in the AI server market. The firm maintained a $1,200 price target, implying further upside from current levels.
Super Micro is scheduled to release its next quarterly earnings report on October 30.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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