After a stellar year of growth, Supermicro Computer (SMCI) will debut on the Nasdaq 100 (NQ=F) next week. The company's stock has surged more than 200% year over year, led by the fierce AI race. Supermicro Computer CEO Charles Liang appears on Market Domination to discuss the company's growth and outlook as AI takes hold.
Liang calls being included in the Nasdaq 100 Index a “great honor,” explaining that the industry is recognizing “our green computing, our time to market for new technologies.” Despite the company's already rapid growth, he believes Supermicro has room to expand further because “the AI boom is just beginning.”
Liang explains that to meet the high demand, the company is accelerating its production capacity and has just added four new facilities in Silicon Valley. He says the additions will enable Super Micro Computer to bring products to market much faster than its competitors, providing unique energy-saving opportunities and on-site customer support while giving it an edge over its competitors.
With the AI race showing no signs of slowing down, Liang believes the technology will “continue to bring many benefits to mankind.” He explains that AI “makes things more accurate, more perfect, more efficient, and more power-efficient, right? So it improves people's quality of life, improves people's education system and culture in many areas.” Liang added that these promises of AI make Super Micro Computer excited to “continue to work with industry leaders to bring fully optimized solutions to the market.”
For more expert insights and the latest market trends, click here to watch this entire episode of Market Domination.
This post was written by Melanie Leal
Video Transcript
Nasdaq announced that starting next week it will add Supermicro Computer to the Nasdaq 100. The stock has been soaring this year.
That's over 200% growth so far this year, even surpassing NVIDIA. And to talk to me about that, I'm joined now by Charles Leong, CEO of Super Micro Computer.
It was nice to meet you.
So, let's start with that news, Charles, you're joining the NASDAQ 100 starting July 22nd.
Please describe Charles.
What this means is revolutionary for you.
Company, employees.
Yeah.
Thank you, Josh.
We are extremely honored and pleased to have been able to lease the property to NetOne NA.
It also means that the industry is recognizing our green computing, time to try new technologies, especially our recent cooling technology, which really helps customers reduce their energy costs, reduces their carbon footprint, and gets printing and data centers online faster thanks to the power consumption.
This is a great owner and we are excited to continue our growth in green computing with our AI and Charles optimized data centers.
Well, typically when a company is added to one of the indexes.
Various ETFs and index funds see the potential for a bit more upside as they add stocks to stocks that have already risen significantly.
What revenue and profit growth are you forecasting?
And have shares made big gains and gone a little too far?
Yeah.
Thank you for your question.
We have grown significantly over the past two years.
In fact, it more than doubled last year, and with the AI boom only just beginning, we believe strong growth will continue.
And people love our energy saving features and building block solutions for optimized solutions for specific applications.
We are very pleased with this and will continue to accelerate our production capacity.
Silicon Valley also recently added four more new buildings.
The defense is strong and we are ready to serve the market faster and better.Charles, you know, your stock price has seen impressive growth, but you have competitors, right?
Well, server manufacturers such as Dell H Pe.
These are the big names.
Charles, what is your competitive advantage?
Our strength, including in technology, is our time to market when new chips and new architectures become available to our vendor partners.
We can usually get optimized systems to you faster, but not only faster, we also facilitate maintenance and deployment at your site based on energy savings and performance optimization, making it easy for you to bring new technology online as quickly as you want.
Also, our production in Silicon Valley is another advantage for us, so our customers work with us in our factories to optimize everything.
Um, we're going to make a rack scale product play.
So once the racks are shipped to your site, they are available online within days.
So it will be ready to go online within a few days.
This is part of what gives us an edge over other companies.
What interests me is not just the competition for customers, but the competition for servers and product components.
I'm talking about chips.
of course.
I know you guys partner with NVIDIA for server components.
But are we getting the supply we need to meet the demand that currently exists?
That's because there's fierce competition not only for customers but also for the chips that make the products you make.
Yeah, we're very lucky.
surely.
Since we started the company in 1993, we have designed and built products based on building professional solutions.
Now, 31 years later, it has been improved, redesigned and further evolved.
Well, admittedly, I'm surprised myself.
Our Building B solution is an incredibly powerful tool that helps you design, manufacture and bring new products to market faster, improve quality and cost structures, and make better use of your inventory to better support your customers in the field.
So, um, it's an imaginary architecture and, um, from day one, 31 years ago, I never knew that the F post solution could be so powerful.
So we are very lucky.
Yes, we have great building techniques and great partners to work with.
Charles, I have a broader question for you.
Some would argue that we are living in a historic moment when it comes to AI.
You know, I think you've heard Jensen Juan from Invidia talk about this, and Jensen said, “The next industrial revolution has begun.”
He describes it that way.
Do you think so?
Charles.
Yeah, Jensen is kind of a genius, right?
He has a very good vision and we work very closely with them.
Well, we believe that the AI boom is just beginning and that AI will continue to bring many benefits to humanity.
Society will make things more precise, more perfect, more efficient and more energy efficient, right?
That means improving the quality of people's lives, improving their education system and culture in many areas.
Charles, we are excited to work with industry leaders to continue to deliver fully optimized solutions to the market.
Thank you so much for joining us on the show today.
Thank you for your time.
Thank you Josh and Julie.
thank you.
