Super Micro Computer (NASDAQ:SMCI) has dropped a massive forecast bombshell, predicting $40 billion in sales by fiscal 2026, far surpassing theStreet’s $30.7 billion estimate. The company attributes this growth to skyrocketing demand for AI-optimized servers, particularly with Nvidia’s new Blackwell B200 chips.
However, the near-term outlook is less rosy. Super Micro has slashed its fiscal 2025 revenue target to $24.3 billion from an initial estimate of $28 billion. Its latest quarterly sales and profit figures also missed expectations. Despite this, investors are optimistic about the long game, with shares surging 7.4% following the announcement.
To fuel expansion and invest in AI infrastructure, Super Micro is issuing a $700 million convertible notes offering, alongside tweaks to its existing notes. The company aims to capitalize on the growing demand for high-performance computing.
However, regulatory troubles continue to plague the firm. It faces scrutiny from the U.S. Department of Justice and SEC over missed financial filings and governance issues. Despite this, Super Micro remains a key player in the AI-driven growth market, with analysts predicting it will benefit alongside peers like Dell and Hewlett Packard Enterprise. The company must now clear regulatory hurdles and ensure its explosive growth projections hold up in reality to maintain investor confidence.
Source: https://finance.yahoo.com/news/super-micros-40-billion-ai-181138879.html