Nvidia (NVDA) has been at the forefront of AI growth, but other major players in the industry are also capitalizing on the momentum. Super Micro Computer (SMCI) is one such company that is making waves in the AI space. I recently spoke with Super Micro CFO David Weigand at Bank of America’s Global Technology conference in San Francisco, and the key takeaway from our conversation was the significant demand that the company is experiencing.
With non-GAAP EPS growing 300% in the most recent quarter compared to a year ago and sales increasing by about 200% year-over-year, Super Micro is clearly in high demand. Weigand pointed out that the biggest challenge facing the company at the moment is meeting this demand due to supply constraints. Despite this, Super Micro is bringing innovative products to the market, such as liquid cooling technology, which is making data centers more efficient. This differentiation has given Super Micro a competitive edge in the industry.
According to Weigand, the speed at which Super Micro is able to bring products to market has been a key factor in its success, particularly with the introduction of liquid cooling solutions. While only 1% of data centers currently use liquid cooling technology, Super Micro expects this figure to grow to 20% within the next 18 months. This anticipated growth, coupled with Super Micro’s strong performance in the market, has impressed analysts and investors alike.
Weigand emphasized that Super Micro’s success is not solely reliant on Nvidia’s business, but is a result of the company’s ability to deliver high-quality products that provide optimal performance. Super Micro is positioning itself as the “Switzerland” of the industry, working with companies like AMD and Intel to offer powerful solutions to its customers. With shares up 168% since the beginning of the year, it seems that Super Micro’s growth story is only just beginning.