Driven by strong demand for artificial intelligence servers, Super Micro Computer expects quarterly revenue to exceed expectations.

Reuters, November 3 - Super Micro Computer (SMCI.O) on Tuesday forecasted that its second-quarter revenue would surpass Wall Street expectations, citing robust demand for its AI-optimized servers that has driven sales growth.

The server manufacturer based in San Jose, California, is one of the main beneficiaries of the AI infrastructure boom, as cloud service providers and tech companies continue to expand data center capacity, fueling strong demand for its systems powered by NVIDIA chips.

Details are as follows:

• Last month, Super Micro Computer appointed former Western Digital executive Mark Long (link) as Chief Financial Officer, after nearly two years of searching due to market concerns over its financial and accounting practices

• According to data compiled by LSEG, Super Micro Computer's first-quarter revenue was $19.95 billion, above analysts' average estimate of $16.39 billion

• For the quarter ended September 30, the company posted adjusted earnings per share of $1.81, compared to the market expectation of $1.23

• The gross margin for the quarter was 12.7%, above the initial forecast range of 12.0% to 12.5%

• The company expects second-quarter revenue to be between $19.5 billion and $21.5 billion, higher than analysts' forecast of $17.14 billion

• The company also projects fiscal 2027 revenue to be between $72 billion and $82 billion, compared to a previous forecast of $65 billion to $72 billion and the market consensus of $69.17 billion

• Last month, a contractor (link) pleaded guilty to charges related to the illegal export of servers equipped with NVIDIA's advanced AI chips to China, and the company has been under scrutiny since

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