Super Micro Computer experienced a substantial surge in its stock, reaching nearly 10% to achieve a new record high in after-hours trading on Monday. This surge continues the recent rally fueled by the growing demand in the artificial intelligence (AI) sector. The company, known for selling servers, provided a sales projection for the upcoming quarter that exceeded expectations, further propelling the stock.
Headquartered in San Jose, California, Super Micro Computer’s positive report after the market closed also had a positive impact on Nvidia’s shares, contributing to a 1.2% increase. This followed a 2.3% gain in Nvidia’s shares during the regular Monday session, resulting in the world’s most valuable chipmaker closing at an all-time high.
Super Micro Computer, whose clients include NASA and Japan’s NEC, demonstrated robust performance with its shares reaching $542 in the extended trading session, building upon a 4.5% increase during the regular Monday trading.
According to Super Micro’s quarterly report, the net sales for the March quarter are anticipated to fall within the range of $3.7 billion to $4.1 billion. This estimate significantly surpassed the consensus analyst forecast of $2.87 billion, as reported by LSEG.
The stock of Super Micro Computer had previously surged by 35% on January 19, playing a crucial role in revitalizing the AI-related companies’ rally on Wall Street. The impetus behind this surge was the company’s pre-reporting of December-quarter results, which exceeded estimates, primarily due to the robust demand for AI servers.
Super Micro’s remarkable growth trajectory is underscored by its stock more than tripling since May 2023. CEO Charles Liang attributed this remarkable performance to the substantial momentum generated by AI, stating that it has greatly benefited Super Micro.