Updated version 1 - Driven by the surge in demand for artificial intelligence servers, Super Micro Computer’s quarterly revenue soared.

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Reuters, October 20 - Super Micro Computer Inc (SMCI.O) said on Tuesday that, as the server manufacturer benefits from consistently strong demand for artificial intelligence data centers, it expects quarterly revenue and profit margin to far exceed Wall Street estimates, sending its shares up 11.3% in after-hours trading.

Rival companies Dell (DELL.N) and Hewlett Packard Enterprise (HPE.N) saw their shares rise between 3.5% and 4.9%. Artificial intelligence chip giant Nvidia (NVDA.O)'s shares rose 1.5%.

The rush by tech giants to expand data centers has made companies like Super Micro some of the biggest beneficiaries of the artificial intelligence boom. The four major cloud computing firms, including Microsoft, Google and Amazon, are expected to spend over $700 billion this year on artificial intelligence infrastructure.

This trend is already reflected in Super Micro's results.

According to data compiled by London Stock Exchange Group (LSEG), the server maker expects first quarter revenue to be between $18.5 billion and $19.5 billion, while analysts' average estimate is $15.23 billion. This expectation is also well above the company’s earlier forecast of $14.5 billion to $15.5 billion in revenue.

Super Micro now also expects gross margin to be between 12% and 12.5%, up from its prior estimate of 10.4% to 10.8%, and higher than analysts’ estimate of 10.15%, mainly attributed to changes in customer mix and product portfolio.

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