- Super Micro Computer uses chips from Nvidia and AMD to help it launch products faster than rivals Dell and Hewlett Packard Enterprise.
- Super Micro’s revenue more than doubled in the last three months of 2023 and analysts polled by the London Stock Exchange Group expect triple-digit percentage growth to continue till at least the September quarter of 2024.
OUR TAKE
Super Micro Computer’s integration of Nvidia and AMD chips in its AI servers strengthens its competitive edge, which helps it launch products faster than rivals Dell and Hewlett Packard Enterprise.
With the introduction of AI, Super Micro’s revenues more than doubled in the last three months of 2023, helping the company to grow better in the field of artificial intelligence.
-Jennifer YU, BTW reporter
Super Micro Computer joined the S&P 500 on Monday with the help of the artificial intelligence server boom.
Cooperation with Nvidia and AMD
Analysts and industry experts, the company has historically been among the first to receive artificial intelligence chips from Nvidia and Advanced Micro Devices as it helps them check server prototypes, giving it a head start over rivals, according to Reuters.
That has helped turn the company into a key supplier of servers essential for generative AI apps and sent Super Micro’s shares up 289% so far this year.
Some analysts estimate Super Micro, whose California headquarters are less than 10 miles away from those of Nvidia and AMD, can within just “a few weeks” manufacture, assemble, test, and ship a server rack if components are available.
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Profitability
Super Micro’s revenue more than doubled in the last three months of 2023 and analysts polled by the London Stock Exchange Group expect triple-digit percentage growth to continue till at least the September quarter of 2024.
Bank of America analysts estimate the company’s share of the AI server market to grow to about 17% in 2026, from 10% in 2023.
That optimism is reflected in Super Micro’s growing market value, which now stands at $60 billion, compared with some $5 billion before the launch of ChatGPT in November 2022.
Rivals
The AI demand has also lifted shares of Dell by 40% this year, including a gain of about 32% earlier this month after an upbeat annual forecast. HP Enterprise shares are down about 1% in 2024.
Both Dell and HP Enterprise did not respond to requests for their go-to-market times for AI servers.
