Investors were absolutely euphoric when it came to the technology company Super Micro Computer last Friday. At the end of the day, the stocks closed at a price of $423, with a daily gain of 35%. This brought the company’s market value to over $23 billion, reaching a new record high. Impressive: just five years ago, the stocks were still trading at just under $15.

The reason for the recent surge was due to business figures that exceeded expectations. Additionally, the server specialist, which is currently benefiting from the AI boom, was able to impress investors with a strong forecast.

Super Micro Computer – the secret winner of the AI boom Super Micro Computer is a worldwide leading company in the field of high-performance server technology. The company develops and markets end-to-end computing solutions for data centers, cloud computing, enterprise IT, big data, high performance computing, and embedded markets.

The solutions include complete servers, storage, network devices, and server management software. Technical support and services are also offered. The company was founded in 1993 and operates in over 100 countries around the world.

High revenue growth meets increasing profit margins As a provider of server and storage technology, Super Micro Computer is one of the major beneficiaries of the current AI boom. The business development of the past years speaks for itself. From 2008 to 2023 (Note: the fiscal year ends on June 30), revenues climbed from $541 million to $7.12 billion. At the same time, profits increased from $25 million to $640 million. Accordingly, the profit margin improved by 4.28 percentage points to 8.98% in the last quarter.

Forecast for the quarter significantly raised The just-raised numbers for the second quarter show that business is still booming: Due to the enormous demand for AI servers, the company now expects revenues between $3.60 and $3.65 billion. This is significantly higher than the previous year’s quarter ($1.8 billion) and well above the previous forecast of between $2.7 and $2.9 billion.

The same goes for profits. While previously only $4.40 to $4.88 per share were expected, the company is now anticipating earnings between $5.40 and $5.55 per share.

Aiming for the $10 billion mark by the end of the fiscal year For the fiscal year ending in June, Super Micro Computer is aiming for revenues between $10 and $11 billion. This corresponds to a revenue growth of between 40% and 54%. According to analysts, these expectations are likely to be significantly too conservative.

Barclays is optimistic The forecasts of analysts at Barclays Bank are significantly higher. The bankers expect annual revenues of $14.01 billion and earnings of $22.02 per share.

This is significantly higher than the consensus estimates (Note: average estimates of all analysts) of $16.75 per share. Based on market forecasts, the price-earnings ratio is 26. Against the backdrop of the exorbitant growth rates, this does not seem too expensive for investors.