Updated January 30th, 2024 at 12:57 IST
Super Micro shares rise after optimistic quarterly sales projection
The surge in Super Micro's stock can be traced back to January 19, when it recorded a 35 per cent increase.
Super Micro shares rise: Super Micro Computer's stock (SMCI.O) experienced a nearly 10 per cent surge to reach a record high in after-hours trading on Monday. This boost follows the server seller's optimistic projection of stronger-than-expected quarterly sales in its recent report. The California-based company's positive performance also had a ripple effect on Nvidia's shares (NVDA.O), which gained 1.2 per cent in extended trade, building on a 2.3 per cent increase during the regular Monday session, marking a record high for the world's most valuable chipmaker.
Super Micro, with its clients like NASA and Japan's NEC (6701.T), witnessed its shares trading at $542, reflecting a 4.5 per cent uptick during Monday's session. In its quarterly report, the company disclosed an anticipated net sales range of $3.7 billion to $4.1 billion for the March quarter. This range significantly surpassed the consensus analysts' estimate of $2.87 billion, as reported by LSEG.
The surge in Super Micro's stock can be traced back to January 19, when it recorded a 35 per cent increase. This remarkable performance played a role in reigniting Wall Street's enthusiasm for AI-related companies. The catalyst behind this surge was Super Micro's pre-reporting of December-quarter results, which exceeded estimates due to robust demand for AI servers.
Since CEO Charles Liang underlined the positive impact of generative AI momentum in May 2023, Super Micro's stock has more than tripled. This recent surge further underscores the company's continued success in the AI market.
(With Reuters inputs)
Published January 30th, 2024 at 12:57 IST