Wed. May 29th, 2024


  • AI server maker Super Micro has raised its fiscal 2024 revenue guidance to between $14.3 billion and $14.7 billion, a significant increase from its previous projection of $10 billion to $11 billion.
  • Super Micro’s revenue guidance, which far surpassed analysts’ expectations, is seen as a positive sign for Nvidia, a leading AI chipmaker.

Super Micro Computer, a longtime partner of Nvidia, has increased its revenue guidance for fiscal 2024, providing further evidence of the strong demand for Nvidia’s AI chips. The company, which designs servers for Nvidia’s AI chips as well as for Advanced Micro Devices (AMD) and Intel, now expects to generate between $14.3 billion and $14.7 billion in revenue for fiscal 2024, doubling its previous projection of $10 billion to $11 billion. This revised guidance far exceeded Wall Street’s consensus estimate of $11.7 billion. Super Micro’s stock price jumped 4% in response to the news, pushing year-to-date gains to approximately 80%.

While Super Micro’s revenue guidance is undoubtedly positive for Nvidia, it is worth noting that much of this good news had already been priced into the stock, as indicated by the relatively modest increase in Super Micro’s stock price compared to the magnitude of the guidance revision. Nevertheless, investors will be closely watching how the market reacts to these numbers as more tech earnings are released in the coming days and weeks.

Nvidia, which was the top-performing stock in the S&P 500 last year, has continued its upward trajectory in 2024. The company’s market value currently stands at over $1.5 trillion, while Super Micro has a market value of $28.5 billion. Jim Cramer, a prominent market commentator, described Nvidia as the “sun” around which other companies, including Super Micro, revolve.

Super Micro’s earnings report is the first of many this week that will shed light on Nvidia’s business and the broader market for AI chips. The next quarterly report from Nvidia itself is scheduled for February 21.

Super Micro’s increased revenue guidance is seen as a positive indicator for Nvidia, suggesting that the company’s sales have remained strong and that it will likely provide robust guidance for the next fiscal year. Super Micro also highlighted the gradually improving supply of AI chips, which is significant considering the chip shortages experienced by Nvidia and others last year. Having an adequate supply of AI chips will be crucial for Nvidia to meet its growth expectations. The company has been working to ramp up supply through third-party producer Taiwan Semiconductor Manufacturing Company.

In conclusion, Super Micro’s revised revenue guidance is a positive development for Nvidia and provides further evidence of the strong demand for AI chips. Nvidia’s stock has been on a steady upward trajectory, and investors will be watching closely to see how the market responds to the positive numbers from Super Micro and other tech companies.

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