Super Micro Computer stock jumps on stronger AI revenue outlook
Business
Super Micro Computer's stock shot up nearly 13% in premarket trading after the company shared a much stronger revenue forecast than expected: between $18.5 and $19.5 billion, way above what analysts predicted.
The main driver? Surging demand for AI data centers, which is also helping the company keep healthy profit margins.
Borrowing costs threaten data center profits
Tech giants like Microsoft, Google, Amazon, and Meta are set to spend over $700 billion on AI infrastructure this year, a huge boost for companies like Super Micro (and even rivals Dell and HPE saw their shares go up).
Still, some experts warn that rising borrowing costs could make it harder for data centers to stay profitable long term, even as shares rose 12.7% to $36.69 in premarket trading.