Super Micro is gearing up to increase its investment in Europe, including expanding the production of its AI servers, CEO Charles Liang said in a recent interview.
Meeting Growing Demand in Europe
The company, known for its servers packed with Nvidia chips essential for training and running large AI models, currently has manufacturing operations in the Netherlands but plans to expand manufacturing capabilities across Europe.
Liang spoke about the move during the Raise Summit in Paris, emphasizing, “The demand in Europe is growing very fast, so I already decided there’s a plan to invest more in Europe, including manufacturing.”
Liang stressed that demand for AI servers is global and expected to continue increasing over the coming years. His remarks came just weeks after Nvidia CEO Jensen Huang toured Europe, signing infrastructure deals and urging the region to boost computing capacity.
Overcoming Recent Challenges
Super Micro benefited from the surge in demand following OpenAI’s ChatGPT success, which drove up the need for Nvidia-powered servers. The company’s stock reached a record high in March 2024 but has since dropped roughly 60% due to accounting concerns and weaker-than-expected quarterly guidance.
Despite those issues, Super Micro filed its delayed financial report for fiscal year 2024 earlier this year, calming investor worries.
Addressing concerns about demand, Liang remained optimistic: “Our growth rate continues to be strong because we continue to develop our fundamental technology and expand our business scope. The room to grow remains tremendous.”
What The Author Thinks
Expanding AI server manufacturing in Europe aligns well with the continent’s growing tech ambitions and need for local infrastructure. Super Micro’s move is timely, addressing supply chain risks and regulatory preferences for regional production. However, the company must navigate economic uncertainties and competition from other global players to fully capitalize on this opportunity.
Featured image credit: Fortune Italia
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