Super Micro Computer Expands US Production to Meet Surging AI Server Demand

Supermicro Eyes Texas, Mississippi For AI Server Growth As Microsoft, Amazon Increase Spending - Super Micro Computer (NASDAQ:SMCI)

Super Micro Computer SMCI plans to expand its server production capacity in U.S. states such as Mississippi and Texas. Big Tech giants Microsoft Corp MSFT and Amazon.com Inc AMZN spend big bucks to build data centers to train and deploy artificial intelligence models globally. The company said it also got a boost from President Trump's push for localization. Also Read: Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast The AI server company's Chair and Chief, Charles Liang, backed the company's expansion by describing the surge in the global demand for artificial intelligence in an interview with the Wall Street Journal on Monday. Liang recognized growth opportunities in the U.S., Europe, and Japan. In February, Super Micro Computer showcased plans to build its third campus in San Jose. Liang said the company was eyeing manufacturing in Texas and Mississippi as costs in Silicon Valley rise. Super Micro Computer makes the bulk of its servers in California. Super Micro Computer stock declined over 52% in the last 12 months as the company's internal financing controls came under scrutiny after its independent auditor resigned last October over governance and transparency concerns, which led the company to delay filing its quarterly and full-year results. Delayed orders of servers and other computer products due to tariff uncertainties prompted the company to cut its outlook. Super Micro Computer now expects fiscal year sales of $21.8 billion -- $22.6 billion, down from a prior outlook of $23.5 billion -- $25 billion. Liang acknowledged production challenges in the U.S., including higher costs and a three-decade-old lack of a semiconductor production system, which made its infrastructure and people unfamiliar with manufacturing jobs. Raymond James initiated coverage on Super Micro Computer, citing AI platforms constitute approximately 70% of Supermicro's revenue, positioning it as a dominant player among branded server vendors. Price Action: SMCI shares were trading higher by 1.19% to $43.28 premarket at last check Wednesday. Read Next: Nvidia Unveils AI Tools For Humanoid Robots, Launches Quantum-AI Supercomputer To Drive Next Tech Era Photo by JHVEPhoto via Shutterstock SMCISuper Micro Computer Inc$43.511.73%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum48.64Growth88.68Quality95.00Value65.01Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$201.93-1.05%MSFTMicrosoft Corp$454.64-0.77%Market News and Data brought to you by Benzinga APIs

Super Micro Computer eyes U.S. expansion amid rising AI demand - WSJ By Investing.com

Investing.com -- Super Micro Computer (NASDAQ:SMCI), a San Jose, California-based server manufacturer, is planning to increase its production capacity in the U.S. to meet the growing global demand for artificial intelligence (AI), according to a report from the Wall Street Journal late on Tuesday, citing an interview on Monday with the company's CEO. Charles Liang, CEO and chairman of Super Micro Computer, revealed the interview that the demand for AI is growing rapidly, presenting numerous opportunities for growth in the U.S., Europe, and Japan. Liang mentioned that the company is considering expanding its production to states such as Mississippi and Texas, particularly if the current U.S. administration continues to promote localization. Super Micro Computer, a supplier of servers utilized for generative AI, announced plans in February to construct its third campus in San Jose. Liang noted that the company is considering manufacturing in Texas and Mississippi due to the rising costs in Silicon Valley. The majority of Super Micro's servers are currently produced in California. The company's expansion plans come as it seeks to capitalize on the global AI boom.