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Supermicro is fast becoming a formidable competitor to other major hardware vendors. Changing supply chain needs, a focus on AI systems and increased manufacturing capacity are key contributors to this development.

Supermicro has seen a significant increase in sales in recent years. When sales targets were set at $10 billion several years ago, these results have been considerably surpassed. According to The Next Web, the hardware manufacturer has already set its goal at 18.4 billion euros ($20 billion) for the end of fiscal year 2025, which ends in that in June 2024.

Source: The Next Web

The company makes motherboards and chassis solutions, primarily for custom servers and other hardware. In doing so, the company occupies a niche position between hardware system suppliers for hypescalers and original hardware vendors such as Dell Technologies, HPE and Lenovo.

Alternative supply chains

Changing customer behaviour among large server clients is playing into Supermicro’s hands in its revenue goals. These are mainly U.S. customers and are looking for alternative supply chain suppliers that can provide them with large quantities of servers in a short period of time. These servers should not come from China or Taiwan, but preferably from factories in the US.

In addition, they want more influence on the products supplied. They cannot find this influence now with the large Asian infrastructure providers or OEMs like Dell Technologies or HPE. Supermicro, as a custom niche player, can provide this influence.

AI systems, manufacturing capacity

In addition, Supermicro is now making itself more attractive by focusing more on developing and building (server) systems for AI and ML solutions and applications. In doing so, the hardware manufacturer is primarily targeting large data center providers and hyperscalers, but also, for example, an AI specialist such as Nvidia itself.

Feather, Supermicro announced its intention to increase its production capacity, which of course also provides more sales growth opportunities. The farmer is particularly interested in building factories in the US.

All this, of course, makes Supermicro increasingly visible and more in a position where it can compete with other large manufacturers. With growing sales figures, it can also make the necessary investments to hold that position.

Also read: Supermicro introduces edge servers with Intel Xeon D processors