For Super Micro Computer (NASDAQ:SMCI), the wild ride never seems to end.
Following a tumultuous 2024 that saw the stock soar to new highs and get added to the S&P 500 in March before cratering by 85% over the next eight months, shares of the server maker are back on the rise.
Heading into the company quarterly earnings report on Tuesday after the bell, Super Micro shares have jumped 59% in the past five trading days, including an 18% surge on Monday. They’re now up 40% since the start of 2025, compared to a 2.1% gain in the NASDAQ.
The bullish story on Super Micro is all about the company’s central position in the booming artificial intelligence market, where it sells servers packed with Nvidia’s (NASDAQ:NVDA) graphics processing units, competing for business with the likes of Dell (NYSE:DELL) and Hewlett Packard Enterprise (NYSE:HPE)
Revenue has more than doubled in three straight quarters thanks to soaring demand for AI infrastructure. Meta (NASDAQ:META) , Amazon (NASDAQ:AMZN) , Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ: MSFT) intend to spend as much as $320 billion combined on AI technologies and data center buildouts in 2025, based on recent comments from top execs.
Analysts are expecting Super Micro to report a revenue increase of about 60% for the December quarter to $5.89 billion, according to a consensus from LSEG.
SMCI shares sank 77 cents, or 1.8%, to $41.88.
