AI Server chip manufacturer Supermicro Semiconductor ( AMD ) stated on Tuesday that its revenue for this quarter is expected to grow by about 66% year-on-year, representing a 21-percentage-point increase from the third quarter. The company also predicts that next year's revenue growth rate will exceed 80%, which is more than twice the forecast in its financial model from a year ago.

The company also expects that the gross margin in the fourth quarter will increase slightly by 1 percentage point compared to the third quarter; next year, the growth rate of revenue will continue to be higher than the growth rate of operating expenses.

Last week, investors became uneasy about the continuously rising capital expenditures of AMD and NVIDIA's major customers – the major cloud service providers. Against this backdrop, AMD's optimistic performance outlook becomes particularly significant.

Although the revenue growth rate in the third quarter fell by 5 percentage points compared to the second quarter, and affected by more than a doubling of capital expenditures, free cash flow in the third quarter shrank by two-thirds to only about $550 million, the expectation of accelerated revenue growth from AMD overshadowed these negative factors. After the announcement, the stock price of AMD rose by over 8% after the market closed.

The server chip business of AMD nearly doubled its revenue in the third quarter, accounting for nearly two-thirds of AMD's total revenue of 13.4 billion US dollars.

Although NVIDIA's revenue scale is at least 7 times that of AMD, and its growth rate is even faster; as of the close of regular trading on Tuesday, NVIDIA's annual increase was still less than 10%, while the stock price of AMD had already risen by 116%. In terms of valuation, the stock price of AMD is more expensive: the expected price-earnings ratio for the next 12 months is nearly 37 times, whereas for NVIDIA it is only 14 times.

In addition to the major cloud service providers, OpenAI, Meta, and Anthropic are all current customers or users of AMD's chips (including complete cabinet products). Su Zifeng, the CEO of AMD, gave a positive evaluation of the customers' capabilities: despite potential difficulties, many AMD customers are undertaking large-scale financing for data center construction through equity and debt, and have the capability to complete chip deployment and production by 2027.