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Despite some concerns around Super Micro's accounting and financial reports which has entailed the stock to be 60% off that all time high, the company has been striving to grow its fundamental technology, including increasing its investment in Europe, ramping up manufacturing of its AI servers in the region.
The company sells servers which are packed with Nvidia chips and are key for training and implementing huge AI models. It has manufacturing facilities in the Netherlands, but could expand to other places.
Super Micro's CEO Charles Liang indicated at the Raise Summit in Paris that the demand in Europe is growing very fast, so the company has a plan to invest more in Europe, including manufacturing.
Super Micro rode the growth wave after OpenAI’s ChatGPT boom boosted demand for Nvidia’s chips, which justify big AI models. The server maker’s stock hit a record high in March 2024. In May, the company reported weaker-than-expected guidance for the current quarter, raising concerns about demand for its product.
But CEO Liang is very confident in the outlook of the demand as well as the prospect of the company, believing that the growth rate will remain strong given the strong backdrop of AI as well as company's aggressive expanding its business scope in the future.Complete digital access to quality Glebors financial topic with expert analysis from industry leaders.
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