Supermicro CEO on AI Growth: Chip Shortages a Bottleneck

If one has been closely observing the recent trends in the U.S. stock market, one would likely have encountered Supermicro (SMCI). Headquartered in San Jose, California, this company specializes in the production of high-performance servers and is considered a stalwart in the IT industry. Thanks to its server product lines that utilize Nvidia’s artificial intelligence (AI) chips, Supermicro has seen a significant surge in revenue, causing its stock price to nearly triple in a short period.

In a recent interview, Supermicro’s CEO, Charles Liang, acknowledged the burgeoning investor interest in devices that facilitate AI applications and training, driven by an insatiable market demand. He pointed out that a shortage of Nvidia chips is impeding Supermicro’s production and sales goals, noting that resolving this issue would enable the company to deliver more products to its customers.

Supermicro projects its sales for the fiscal year 2024 (ending this June) to be between $14.3 billion and $14.7 billion. Furthermore, some analysts believe that Supermicro’s production capacity could support sales up to $25 billion, underscoring the company’s vast potential amid the soaring AI market sales.

Supermicro has frequently positioned itself as a leading supplier of Nvidia’s AI high-performance computing solutions. However, other server manufacturers are shifting their focus towards Nvidia’s rival, AMD, to mitigate their dependency on Nvidia. For instance, Gigabyte’s server division is now embracing the Instinct MI300X, producing more servers based on this particular computing card.