Annabelle Stephenson
Amidst the rapid expansion of the AI chip market, Super Micro Computer, a leading AI server maker and long-time partner of Nvidia, has revised 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, which is double its earnings from fiscal year 2023. This significant revision surpasses the Wall Street consensus estimate of $11.7 billion, according to FactSet’s report.
Super Micro is well-known 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 such as Advanced Micro Devices (AMD) and Intel, Nvidia remains the dominant force in the AI chip market. However, both AMD and Intel are aiming to increase their market share in 2024, with AMD viewed as having the best position due to the launch of its AI-focused MI300X chip.
The financial market has responded positively to Super Micro’s revised revenue projection, as the company’s shares surged by 4% on Tuesday. Year-to-date gains for Super Micro stand at approximately 80%, with a staggering 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.
Despite the positive performance, the significant market movement suggests that investor expectations may have already taken into account a large portion of the positive news. As more tech companies release their earnings results, market observers will closely monitor how these positive numbers are received.
In contrast, Nvidia continues to reach 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 broader AI chip market. It also indicates that Nvidia maintained strong sales throughout 2023, which signals the likelihood of robust guidance in the future. This report is particularly significant considering the AI chip shortages that 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.
Sagedasemalt Esitatavad Küsimused (KKK)
The source of the article is from the blog mendozaextremo.com.ar
