Nvidia (NVDA) may have stolen the spotlight for AI growth, but other big players are seizing the momentum too.
One of those names: Super Micro Computer (SMCI).
I sat down with Super Micro CFO David Weigand at Bank of America’s Global Technology conference in San Francisco today, and my big takeaway from the conversation is that the demand is real.
Reminder that non-GAAP EPS grew 300% in the most recent quarter from a year ago, while sales were up about 200% year-over-year. Now the big question is supply.
“The opportunity that is presented is the huge demand,” Weigand told me.
“We've had a growing backlog because of the fact that we're bringing really good products to market. It's really still a supply constrained market," Weigan said.
Helping fuel Super Micro’s unprecedented demand is its new product, liquid cooling, which makes data centers more efficient. Weigand told me that it’s what differentiates Super Micro from others within the industry and gives the company “an edge.”
“Speed to market is really the edge that we have and what gave us the ability to guide so many shipments in liquid cooling this quarter," Weigand added.
To put the expected growth perspective, Bank of America’s Ruplu Bhattacharya wrote in a recent note that just 1% of data centers use liquid cooling today, but Super Micro expects that figure to grow to 20% within the next 18 months.
Weigand added that Super Micro’s massive outperformance, and in case you missed it, shares are up a staggering 168% since the start of the year, is more than just a result of Nvidia’s blowout business. Weigand describes the company as the “Switzerland” of the industry.
“Nvidia is a powerhouse, but AMD (AMD) and Intel (INTC) have great and very powerful solutions. We will deliver the products that deliver the best optimal performance," said Weigand.
If he’s right, it sounds like Super Micro’s growth story is just getting started.
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