Supermicro shares jump after revenue forecast raise re-ignites AI rally

(Reuters) - Super Micro Computer shares rose nearly 11% before the bell on Tuesday after the artificial intelligence server maker delivered blowout quarterly results and raised its full-year revenue forecast significantly ahead of Wall Street estimates.

The company, which counts NASA and Japan's NEC among its customers, lifted its fiscal 2024 revenue forecast range to $14.3 billion to $14.7 billion from $10 billion to $11 billion, and above analysts' estimate of $11.51 billion, according to LSEG data.

The forecast follows a third-quarter outlook boost earlier this month that has since pushed the San Jose, California-based company's market value $10 billion higher to $27.53 billion, and lifted other AI-related companies.

Shares of Nvidia, the biggest beneficiary of the AI hype, rose 1% on Tuesday, while Microsoft, which is expected to report results after market close, added 0.8%.

"There is a renewed feeling of optimism around the potential size and longevity of this AI boom," said Joshua Mahony, chief market analyst at Scope Markets.

"Microsoft shareholders will hope that the company's early investment into AI continues to pay dividends, with record revenues of $61 billion expected."

Supermicro's stock has more than tripled since May last year when CEO Charles Liang said the generative "AI momentum has benefited Super Micro greatly."

The stock, which closed at a record high on Monday, was last up at $548.49 and set to hit a fresh peak at market open.

Super Micro reported a 17% jump in third-quarter net sales to $3.66 billion from a year earlier, and adjusted earnings per share (EPS) of $5.59 - both above its latest forecast from less than two weeks ago.

Analysts on average had expected $2.87 billion in revenue and $4.55 EPS.

Supermicro trades 24.9 times its earnings estimate for the next 12 months, below Nvidia's multiple of 30.5, per LSEG data. A lower multiple indicates the stock is trading cheaper compared to its earnings potential.

(Reporting by Medha Singh in Bengaluru; Editing by Shinjini Ganguli)