Supermicro Eyes Texas, Mississippi For AI Server Growth As Microsoft, Amazon Increase Spending
Super Micro Computer (SMCI) plans to expand server production in Texas and Mississippi, driven by increased spending from Microsoft and Amazon on AI data centers. CEO Charles Liang highlighted the surge in global AI demand and the need for localization. Despite a 52% stock decline over the past year due to governance issues and delayed server orders, Super Micro expects fiscal sales of $21.8-$22.6 billion. Raymond James initiated coverage, noting AI platforms account for 70% of its revenue. SMCI shares rose 1.19% to $43.28 in premarket trading.
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.
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