Updated version 1 - Driven by strong demand for artificial intelligence servers, Super Micro Computer expects quarterly revenue to exceed expectations.

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Reuters, November 3 - Super Micro Computer (SMCI.O) on Tuesday forecast second-quarter revenue above Wall Street estimates, as demand for its AI-optimized servers drove sales higher, sending the stock up about 6% in after-hours trading.

The California-based server manufacturer, headquartered in San Jose, is one of the main beneficiaries of the AI infrastructure boom, with strong demand for its systems equipped with Nvidia chips as cloud service providers and tech firms continue to expand data center capacity.

Details are as follows:

• Super Micro Computer last month appointed former Western Digital executive Mark Long (link) as Chief Financial Officer (CFO), after seeking a candidate for the position for nearly two years due to market concerns about its financial and accounting practices

• According to data compiled by London Stock Exchange Group (LSEG), Super Micro Computer's first-quarter revenue was $19.95 billion, above analysts' average estimate of $16.39 billion

• For the quarter ended September 30, the company's adjusted earnings per share were $1.81, compared to a market expectation of $1.23

• The company's gross margin for the quarter was 12.7%, above the initial estimate of 12.0% to 12.5%

• The company expects second-quarter revenue to be between $19.5 billion and $21.5 billion, exceeding analysts' expectations of $17.14 billion

• It also forecasts fiscal 2027 revenue to be between $72 billion and $82 billion, up from a previous forecast of $65 billion to $72 billion, while the market's consensus estimate is $69.17 billion

• Last month, a contractor (link) pleaded guilty to charges related to illegally exporting servers equipped with advanced Nvidia AI chips to China, and the company has since come under scrutiny

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