Nvidia’s Partner Super Micro Computer Revises Revenue Projection, Boosting Confidence in AI Chipmaker
Amidst the rapidly expanding market for AI chips, Super Micro Computer, a prominent AI server maker and longtime partner of Nvidia, has raised its revenue projection for fiscal year 2024. The company now expects to generate revenues in the range of $14.3 billion to $14.7 billion, doubling its earnings from fiscal 2023. This remarkable revision far surpasses the Wall Street consensus estimate of $11.7 billion, as reported by FactSet.
Super Micro is widely recognized for designing computer servers for data centers that utilize Nvidia’s highly sought-after AI chips. While the company also collaborates with other major players like Advanced Micro Devices (AMD) and Intel, Nvidia remains the dominant force in the AI chip market. However, AMD and Intel have set their sights on increasing their market share in 2024, with AMD being viewed as having the best position to achieve this due to the launch of its AI-focused MI300X chip.
The financial market has responded positively to Super Micro’s revised revenue projection, with the company’s shares surging by 4% on Tuesday. Year-to-date gains for Super Micro stand at approximately 80%, with an astonishing 600% increase in stock value over the past 12 months. The substantial growth in demand for Super Micro’s AI servers has been a key driver behind this surge in stock value.
Despite the optimistic performance, the significant movement in the market suggests that investor expectations may have already factored in a large portion of the positive news. As more technology companies release their earnings results, market observers will closely watch how these positive numbers are received.
In contrast, Nvidia continues to achieve new all-time highs, with its stock climbing approximately 27% in 2024. The company’s market value currently exceeds $1.5 trillion, while Super Micro’s market value stands at $28.5 billion.
Super Micro’s earnings report provides valuable insights into Nvidia’s business and the wider AI chip market. It also suggests that Nvidia maintained strong sales throughout 2023, signaling the likelihood of robust guidance in the future. This report is particularly significant considering the AI chip shortages Nvidia faced last year.
Looking ahead, analysts project that Nvidia will generate $93.3 billion in sales for its upcoming fiscal year. This ambitious growth expectation will depend on the availability of an ample supply of AI chips. Nvidia has taken steps to address this issue by collaborating with Taiwan Semiconductor Manufacturing Company (TSMC), a third-party producer. The company’s management anticipates improved chip availability throughout 2024.
In summary, Super Micro’s upward revision of its revenue projection for 2024 reinforces confidence in Nvidia as a leading AI chipmaker. The strong partnership between the two companies and the sustained demand for AI servers point towards a promising future for Nvidia. Market participants will closely observe how the market responds to these positive figures as they eagerly await the financial results of other tech giants in the days and weeks to come.
Frequently Asked Questions (FAQ)
1. What is Super Micro Computer’s new revenue projection for fiscal year 2024?
Super Micro Computer has raised its projected revenue to a range of $14.3 billion to $14.7 billion, a substantial increase from the $10 billion to $11 billion estimate previously announced in November.
2. How does Super Micro Computer contribute to the AI chip market?
Super Micro Computer designs computer servers for data centers that utilize Nvidia’s highly sought-after AI chips. While the company also collaborates with AMD and Intel, Nvidia remains the dominant player in the AI chip market.
3. How has the stock market reacted to Super Micro’s revised revenue guidance?
The stock market responded positively to Super Micro’s revised revenue guidance, with the company’s shares surging by 4% on Tuesday. Year-to-date gains for Super Micro stand at approximately 80%, and the stock has experienced a staggering 600% increase over the past 12 months.
4. What are the expectations for Nvidia’s growth in 2024?
Analysts anticipate Nvidia to generate $93.3 billion in sales in its upcoming fiscal year. The achievement of these growth expectations will depend on the availability of an adequate supply of AI chips.
5. How is Nvidia addressing the issue of AI chip shortages?
Nvidia is collaborating with Taiwan Semiconductor Manufacturing Company (TSMC), a third-party producer, to expand its supply of AI chips. The company’s management expects improved chip availability throughout 2024.
6. What impact does Super Micro’s earnings report have on Nvidia?
Super Micro’s earnings report provides valuable insights into Nvidia’s business and the broader AI chip market. It suggests that Nvidia maintained strong sales throughout 2023, signaling the likelihood of robust guidance in the future.
The source of the article is from the blog yanoticias.es