Supermicro, a company specializing in manufacturing commodity hardware such as motherboards, servers, storage, networking, and PCs, is riding the wave of the artificial intelligence (AI) revolution and experiencing faster growth than its competitor Nvidia. Supermicro’s Founder, President, and CEO, Charles Liang, believes that the impact of the AI revolution could be even bigger than the Industrial Revolution of 200 years ago, as AI is set to impact every aspect of our lives.
Supermicro, which reported fiscal 2023 revenue of $7.12 billion, recently revised its fiscal 2024 revenue guidance to $14.3 billion to $14.7 billion, significantly higher than its previous guidance. The company’s success can be attributed to its push into AI, which has caught the attention of IT buyers, solution providers, and investors.
Charles Liang has been involved in the AI business since he immigrated to the U.S. from Taiwan 38 years ago. He founded Supermicro in 1993, the same year Nvidia was founded, and the two companies have enjoyed a long-standing relationship. Supermicro’s motherboards and systems have incorporated Nvidia chips, especially its GPUs, which have become essential for AI infrastructure. This close partnership allows Supermicro to quickly develop new products in line with Nvidia’s advancements.
While Supermicro’s overall business is growing rapidly, its AI-related business is growing even faster as the company expands its product line to incorporate AI, including AI PCs. AI-related technology now accounts for over half of the company’s revenue. Supermicro’s early availability of AI solutions has contributed to its success in this booming market.
Supermicro’s CEO believes that the AI revolution encompasses generative AI and inference AI, and the company offers a wide range of product lines and total solutions to meet the demand. With the guidance for fiscal 2024 revenue expected to be twice that of fiscal 2023, Supermicro’s growth in the AI space shows no signs of slowing down.
In conclusion, Supermicro is capitalizing on the AI revolution with its rapid revenue growth and expansion into AI-related technologies. The company’s close relationship with Nvidia and its ability to quickly develop new products have positioned it as a significant player in the AI industry. As AI continues to infiltrate various aspects of our lives, Supermicro is well-positioned to thrive in this booming market.
