Super Micro jumps 13% on strong AI demand forecast

Super Micro Computer shares surged nearly 13% on Wednesday after the AI server maker forecast quarterly revenue and profit margins well above Wall Street estimates, signaling resilient demand for AI data centers. The company projected first-quarter revenue between $18.5 billion and $19.5 billion, surpassing analysts' expectations of $15.23 billion, with profit margins of 12% to 12.5%, up from earlier forecasts of 10.4% to 10.8%. Rivals Dell and Hewlett Packard Enterprise also gained over 4% premarket. The upbeat outlook comes amid concerns over data center operator profitability, as heavy debt issuance and rising borrowing costs have rattled AI-linked stocks recently, including a selloff centered on CoreWeave last week. UBS strategists noted investors will scrutinize AI giants' spending commentary to justify the capex cycle.