By Adam Clark
Super Micro Computer stock was rising early on Wednesday. Good news from a rival could be helping the server maker's rally.
Super Micro shares were increasing 2.9% to $40.29 in premarket trading. The stock rose 8.5% the previous day, defying a market slump over tariff fears.
Investors look to be concentrating on strong demand for artificial-intelligence servers. Taiwan's Foxconn -- also known as Hon Hai Precision Industry -- reported on Wednesday that its revenue for the first two months of the year was up 25% from 2024. Foxconn, which like Super Micro is a major manufacturer of servers containing Nvidia chips, said it expects a strong first quarter.
Super Micro is still notably down from the highs reached last week when it avoided delisting and met its compliance deadline for submitting financial filings. Senior Vice Presidents Sara Liu and George Kao sold several million dollars worth of Super Micro stock on Feb. 26, when shares were surging after the embattled company filed its delayed 10-K form the previous day.
Despite the uncertainty about the company's accounting, Super Micro has become a popular AI trade among retail investors, including those using leveraged single-stock funds. That has made the stock's moves notably volatile.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
March 05, 2025 05:54 ET (10:54 GMT)
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