Super Micro Computer (SMCI) is hitting the Nasdaq 100 (NQ=F) next week after a stellar year of growth. Shares of the stock have exploded more than 200% year-over-year spearheaded by a heated AI race. Super Micro Computer CEO Charles Liang joins Market Domination to discuss the chip company’s growth and its outlook as AI takes hold.
Liang calls the Nasdaq 100 achievement a “great honor,” explaining that the industry recognizes “our green computing, our time to market with new technology.” He believes that despite already seeing meteoric growth, Super Micro Computer has even more room to expand “because the AI boom is just beginning.”
To meet the high demand, Liang explains that the company is accelerating its production capacity and it has just added four new facilities in Silicon Valley. He notes that this addition allows Super Micro Computer to bring its products to market much quicker than its competitors, giving them an advantage alongside providing unique energy-saving opportunities and on-site customer support.
As the AI race shows no signs of slowing, Liang believes the technology “will continue to bring lots of advantages to human beings.” He explains that AI will “make things more precise, more perfect, more efficient, even more power-saving, right? So improve people’s life quality and improve people’s education system, culture, in lots of areas.” With these promises of AI, Liang adds that Super Micro Computer is excited to “work with industry leaders to continue to deliver the fully optimized solution to the market.”
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This post was written by Melanie Riehl
Video Transcript
Nasdaq announcing the addition of Super Micro computer to the NASDAQ 100 starting next week stock having a meteoric rise this year.
It’s something more than 200% year to date, even outperforming NVIDIA and joining us now to talk about all this is Super micro computer, Ceo Charles, Leong, Charles.
It is good to see you.
So let’s let’s start with that news, Charles, you are joining the NASDAQ 100 starting on July 22nd.
Walk us through Charles.
Just what this means is a milestone for you.
The company, your employees.
Yeah.
Thank you, Josh.
It has been a great honor and we are very happy to be leased in uh net one N A company.
Uh that also mean that industry recognize our green computing, our time to monkey with new technology and especially our cooling recently that really help customer reduce their energy cost, reduce carbon, who print and make their data center available online earlier because of that power consumption.
So it’s a great owner and we are very happy to continue uh grow our company in green computing in optimized data center uh for A I and Charles.
Um Typically when A company is added to one of the indexes.
We do see a little more upside as various ETF S and index funds, add the stock with your stock already up so much.
What is the revenue and earnings growth that you are predicting?
And has the stock gotten a little ahead of itself with the huge gains that it’s seen?
Yeah.
Thank you for the question.
Last two years, we have been growing a lot.
Indeed, the last year, more than double and I believe the strong growth will continue because the A I boom is just beginning.
And people like our energy saving, like our building block solution for specific application optimized solution.
So we are very happy for that and uh company continue to uh uh accelerate our production capacity.
Even in Silicon Valley, we just added four more new building recently.
Uh The defense is strong and we are we are preparing to service the market uh quicker and better Charles, you know, um your stock has enjoyed just a remarkable run, but you do have competition, right?
Um Dell H Pe other server makers.
These are big names.
What is your competitive advantage, Charles.
Oh Our advantage including technology is time to market when our partner vendor partner have a new chip, new architecture available.
Usually we are able to bring the optimized system to our customer earlier and not just earlier but with uh energy saving with uh based uh optimization for performance for easy maintenance and we have a customer on site deployment, make the job easier for our customer so that they can bring new technology to online uh quicker as quick as they want.
So uh also our production in Silicon Valley that have been another advantage uh customer work with us in our factory and very dead uh optimize everything.
Uh We make a rack scale uh product play.
So when we ship the rack to customer site, customer can go for online in a few days.
So they are ready to be online in a few days.
So that’s uh some of our uh advantage compared with others.
I’m curious, not just about competition for customers but competition for the building blocks for your servers and your products.
I’m talking about the chips.
Of course.
Now I know that you all have partnered with NVIDIA as the sort of the building blocks for your servers.
But are you getting the supply that you need to meet the demand that is out there right now?
Because there’s a lot of competition, not just for customers but for the chips to build what you guys build.
Yeah, we are very lucky.
Indeed.
Since day one, I founded a company in 1993 we design our product build our product based on building Pro solution.
And after 31 years refining redesign improving.
Uh Indeed, I surprise myself.
Our building B solution have been a very powerful tool that help us design, manufacture, a new product come to market it quicker and also with better quality, better cost structure uh able to leverage inventory more efficiently, easy to support a customer on site.
So um uh it’s imagine architecture and since uh day 1, 31 years ago, again, I did not know the F post solution can be that powerful.
So we are very lucky.
Uh We have a good architectural and a good partner to work together.
You know, uh a broader question for you, Charles.
Some argue that they, they think about A I right now and they, they argue we’re really at this kind of historic moment.
You know, you’ve heard Invidia Jensen Juan talk about this that, you know, Jensen will say, you know, the next industrial revolution has begun.
That’s how he describes it.
Do you see it that way?
Charles.
Uh Yes, Jensen is uh like a genius, right?
He has been uh have a very good vision and we work with them very closely.
Uh So we believe uh we both believe the A I boom is just beginning and A I will continue to bring lots of advantage to uh human being.
The society makes things more precise, more perfect, more efficient, uh even more power saving, right?
So, improve people’s uh life quality and improve people’s uh education system culture, I mean, uh in lot of area.
So uh we are very happy to uh uh work with the industry leader continue to deliver the uh fully uh optimized solution to to the market Charles.
Thank you so much for joining the show today.
We appreciate your time.
Thank you, Josh and Julie.
Thank you.