Super Micro CEO Charles Liang told CNBC the company has plans to increase investment in Europe. Liang said that "demand [in] Europe is growing very fast.
"He dismissed concerns over Super Micro's weaker-than-expected outlook for the current quarter and said that the company's growth rate "continues to be strong.
"In this MCI your favorite stocksCREATE FREE ACCOUNTCEO of Supermicro Charles Liang speaks during the Reuters NEXT conference in New York City, U. , December 10, 2024.
Mike Segar | ReutersPARIS — Super Micro plans to increase its investment in Europe, including ramping up manufacturing of its AI servers in the region, CEO Charles Liang told CNBC in an interview that aired on Wednesday.
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.
"But because the demand in Europe is growing very fast, so I already decided, indeed, [there's] already a plan to invest more in Europe, including manufacturing," Liang told CNBC at the Raise Summit in Paris, France.
"The demand is global, and the demand will continue to imve in [the] next many years," Liang added.
Liang's s come less than a month after Nvidia CEO Jensen Huang visited various parts of Europe, signing infrastructure deals and urging the region to ramp up its computing capacity.
Growth to be 'strong'Super Micro rode the growth wave after OpenAI's ChatGPT boom boosted demand for Nvidia's chips, which underpin big AI models.
The server maker's stock hit a record high in March 2024. However, the stock is around 60% off that all-time high over concerns its accounting and financial reporting.
But the company in February filed its delayed financial report for its 2024 fiscal year, assuaging those fears.
In May, the company reported weaker-than-expected guidance for the current quarter, raising concerns demand for its duct. However, Liang dismissed those fears.
"Our growth rate continues to be strong, because we continue to grow our fundamental nology, and we [are] also expanding our scope," Liang said.
"So the room … to grow will be still very tremendous, very big.