Super Micro expects quarterly sales of between $18.5 billion and $19.5 billion, well above analysts’ average estimate of $15 billion.
The company continues to see massive demand for its infrastructure tailored for AI workloads.
The strong financial update comes alongside a recent federal investigation into alleged server diversions to China, although an independent investigation cleared senior management of any involvement.
Super Micro Computer Inc. (SMCI) stock price soared 16% after hours Tuesday after releasing preliminary financial figures for the quarter ending Sept. 30, which far exceeded analysts’ expectations.
The server maker expects revenue between $18.5 billion and $19.5 billion, well above the consensus estimate of $15 billion, according to Fiscal.ai.
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Additionally, the company said gross margins are expected to be between 12% and 12.5%.
The strong preliminary results highlight the demand for Super Micro’s servers in the booming artificial intelligence sector. The company’s hardware systems use Nvidia Corp. chips. (NVDA), which have become the standard and preferred components of most modern AI data centers.
The positive earnings update comes as the company faces legal scrutiny over allegations that a co-founder and two others illegally redirected billions of dollars worth of servers to China, in violation of U.S. laws.
However, Super Micro has not faced any formal charges in connection with this case. An independent investigation also concluded that the company’s management team was unaware of the alleged scheme.
Super Micro said it will formally review its quarterly results during an upcoming conference call scheduled for November 3.
SMCI action: detail view
Retailer sentiment on Stocktwits was “extremely optimistic” with “high” message volumes.
One user pointed out that SMCI remains a great buy at current levels.
SMCI stock has gained about 8% year to date.
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Shashank Nayar has no position in any of the stocks mentioned in this article. Content from the StockTwits News Team is for informational purposes only and is not intended as investment advice. To learn more, see our editorial policy. This article was originally published on StockTwits.
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