Super Micro Computer Inc. on Thursday delivered the latest upbeat signal for the chip industry.
The company, which is a partner of Nvidia Corp.
NVDA,
and offers servers that run artificial-intelligence chips, expects to report fiscal second-quarter results vastly above the consensus view. Super Micro
SMCI,
issued preliminary quarterly figures Thursday afternoon that call for $3.6 billion to $3.65 billion in net sales, ahead of the $2.8 billion FactSet consensus, which was also the midpoint of the company’s prior outlook.
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Super Micro also now expects to post $5.40 to $5.55 in adjusted earnings per share for the December quarter, while analysts had been looking for $4.51 and the company’s earlier forecast called for $4.40 to $4.88.
The company’s release on the matter was brief, calling out “a strong market and end customer demand for our rack-scale, AI and Total IT Solutions” and noting that the company’s earnings call will take place after the close of trading on Jan. 29.
Super Micro shares were up more than 6% in aftermarket action Thursday.
The preliminary results come as the latest bit of good news for the chip sector. Earlier Thursday, Taiwan Semiconductor Manufacturing Co.
TSM,
issued a better-than-expected forecast for the current quarter while giving upbeat commentary on the future of artificial-intelligence chips. TSMC shares surged nearly 10% on the day, and the report helped to lift other chip stocks, including Advanced Micro Devices Inc.
AMD,
which finished the session in record territory.
Shares of Super Micro have almost quadrupled over the past 12 months, with the name seen as a play on the artificial-intelligence frenzy. In the fiscal first quarter, Super Micro generated more than half of its revenue from AI-related servers. The company acknowledged supply constraints on its last earnings call.
This story originally appeared on Marketwatch
