Supermicro Stock Surges As AI Computing Boom Continues
Shares of Supermicro, a major maker of computer servers, shot up more than 30% to a record high after the company said revenue for its recently ended quarter would be far higher than initially expected.
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Supermicro Stock Surges As AI Computing Boom Continues.#semiconductor #chips #ai pic.twitter.com/zTu3wMi6nP
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The company is among the big beneficiaries of surging investment in computing infrastructure for artificial intelligence. AI chips made by Nvidia and its peers reside in servers that Supermicro and other manufacturers produce.
Supermicro said Thursday it was on track to make roughly $3.6 billion of revenue in its December quarter, versus earlier guidance of roughly $2.8 billion.
Demand for AI computing power has risen at an unprecedented pace in recent quarters, driven by the emergence of language- and image-generation tools like OpenAI’s ChatGPT. The uptick has boosted revenues for Nvidia to $18 billion in its latest quarter from $6 billion a year earlier, and has catapulted the company’s valuation above $1 trillion.
Supermicro’s results may indicate that the AI boom is still booming after more than a year, as tech companies scramble to build up their computing capabilities.
