NVIDIA Corporation (NASDAQ:NVDA) shares are trading 2% lower in pre-open trading Wednesday following the hot CPI report, but investors may want to pay attention to another piece of news.
After the close, NVIDIA partner Super Micro Computer Inc (NASDAQ:SMCI), which makes AI servers, issued super bullish revenue guidance for its fiscal year 2026, which is the period from July 2025 to June 2026. SMCI sees revenue for that period up a whopping 65% to $40 billion, well above the consensus of $33.6 billion. SMCI CEO Charles Liang even said that number could prove “conservative.” Needless to say, SMCI shares are rocketing 9% higher in pre-open trading today.
SMCI is ramping up delivery of its Blackwell servers, so the read-through to NVIDIA is easy to see.
While there are many questions surrounding SMCI, which has been hurt by accounting woes and short-seller reports, the numbers are worth considering for NVIDIA shareholders.
Commenting on the news, Mizuho (NYSE:MFG) desk analyst and TMT specialist Jordan Klein said, “SMCI mgmt. to me sounded very confident in the demand and pending timing for NVDA Blackwell AI server ramp, whether it is GB200 or HGX designs. Only hold up seems to be enough GPU chip supply. But that should come. To me it BODES POSITIVE FOR NVDA and other suppliers, like FN and any optical component supplier into 2H when 1.6T speed transceivers are expected to really ramp.”
NVIDIA shares have had a tumultuous start to the year following the release of China’s DeepSeek, which has raised questions about future capex budgets. Shares have since recovered most of those DeepSeek-related losses as hyperscalers like Google (NASDAQ:GOOGL), Meta (NASDAQ:META), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) issued strong capex forecasts showing they are betting huge on AI.