Super Micro raises revenue forecast on AI server demand

Super Micro Computer expects first-quarter revenue and profit margins well above Wall Street estimates, driven by strong AI data center demand, sending its shares up 11.3% in after-hours trading on Tuesday. The server maker forecasts revenue between $18.5 billion and $19.5 billion, surpassing the analyst average of $15.23 billion and its prior guidance of $14.5 billion to $15.5 billion. Gross margins are expected at 12% to 12.5%, up from earlier estimates, due to customer and product mix. Rivals Dell and HPE gained 3.5% to 4.9%. The forecast follows a recent AI sector selloff triggered by CoreWeave’s stock and bond slide and interest rate concerns. Big Tech firms like Microsoft, Google, Amazon, and Meta are projected to spend over $700 billion on AI infrastructure this year. Super Micro also appointed Mark Long as CFO last week.