Super Micro Computer forecasted fourth-quarter revenue and adjusted profit above Wall Street estimates, driven by strong demand for its AI servers. The company projected revenue between $11 billion and $12.5 billion, exceeding analysts' expectations of $11.07 billion. Adjusted profit per share is expected to range from 65 cents to 79 cents, surpassing estimates of 55 cents. CEO Charles Liang attributed the growth to new U.S. manufacturing facilities and partnerships with Nvidia for AI processors. For the third quarter, revenue surged 123% year-over-year to $10.24 billion, though it fell short of estimates of $12.33 billion.
Legal Challenges Emerge
Meanwhile, Super Micro faces legal scrutiny after the U.S. Attorney's Office charged associates of an unnamed U.S. server maker with illegally diverting Nvidia-powered servers to China. The indictment did not name Super Micro, but the company confirmed that one defendant was a co-founder and executive, another a manager, and the third a contractor. Wally Liaw, a co-founder and former executive, resigned following his arrest. CEO Liang stated that Super Micro was deceived by the alleged scheme and is cooperating with authorities. The company has launched an internal investigation led by independent board members and forensic consultants.
Market Reaction
Super Micro's shares climbed 19% in extended trading after the earnings report, despite being down 5% year-to-date. The company's growth aligns with a projected $700 billion in AI investments by Big Tech firms like Alphabet, Amazon, Microsoft, and Meta Platforms. Liang emphasized the company's strategic position to meet AI and enterprise demand.