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Super Micro forecasts quarterly revenue above estimates as AI powers server demand
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Super Micro forecasts quarterly revenue above estimates as AI powers server demand
Apr 30, 2024 2:02 PM

April 30 (Reuters) - Super Micro Computer ( SMCI )

forecast fourth-quarter revenue above estimates on Tuesday as it

expects continued demand for its servers used in artificial

intelligence applications.

Super Micro's in-house liquid cooling solutions for

servers have helped it get products to the market quicker than

its competitors, who rely partly on third-party vendors.

Its close relations with chip giants Nvidia ( NVDA ) and

Advanced Micro Devices ( AMD ), whose headquarters are less than

10 miles from Super Micro's, help it receive early samples of

chips to check prototypes, giving it further advantage over

rivals.

Super Micro's stock, which has nearly tripled so far this

year, was added to the S&P 500 index last month.

The company expects fourth-quarter revenue between $5.1

billion and $5.5 billion, compared with estimates of $4.89

billion, according to LSEG data.

Revenue for the quarter ended March 31 stood at $3.85

billion, compared with estimates of $3.95 billion, according to

LSEG data.

The company posted a net income of $402.5 million in the

third quarter, compared with $85.9 million a year ago.

Gross margin for the three-month period was 15.5%,

compared with 17.6%, a year ago, in line with analyst

expectations.

Shares of the San Jose, California-based company were

down 3% in volatile trading after the bell.

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