Supermicro bets on next-gen chips to weather recession

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Supermicro bets on next-gen chips to weather recession
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Supermicro bets on next-gen chips to carry it through economic downturn

If one thing was abundantly clear from Supermicro's Q1 earnings call this month, it's that the server maker really needs Intel, AMD, and Nvidia's next-gen datacenter components to be a hit if it's going to weather the economic downturn.

But the company's flat outlook on Q2 growth – in the range of $1.7 billion to $1.8 billion – showed the company isn't ruling out headwinds from a recession that's already battering cloud and hyperscale customers. Pressed by analysts during Tuesday's call, Supermicro's CEO and CFO hammered their points on Intel, AMD, and Nvidia's next-gen CPUs and GPUs as an insulating force that should shield the company from an economic slowdown and even present opportunities to carve out a larger share of the market.

"We are ready to launch a full line of next-generation products with technologies across our key partner ecosystem," Liang said.are slated to begin making their way to customers in Q1, while Ampere's Arm-based third-gen CPU should – barring any delays – begin ramping production some time next year. Supermicro currently offers systems from all four vendors.

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