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Super Micro Computer, Inc. is doubling down on Europe.
In a strategic move aimed at riding the AI boom and staying ahead of competitors, Super Micro plans to significantly ramp up its manufacturing capabilities in Europe. Speaking at the Raise Summit in Paris, CEO Charles Liang confirmed that the company has already laid out concrete plans to boost investment across the continent—including expanding its AI server production facilities.

“The demand in Europe is growing very fast,” Liang said in an exclusive interview with CNBC. “We’ve already made the decision to invest more in Europe, including expanding our manufacturing footprint.”

Super Micro currently operates a facility in the Netherlands, but growing demand could push the company to set up additional plants in other European nations. According to Liang, the company’s growth trajectory remains intact despite recent investor concerns. “The demand is global, and it will continue to increase for many years,” he added.

Riding the AI Wave

Super Micro has been a major beneficiary of the AI revolution, especially after the explosive success of OpenAI’s ChatGPT in late 2022. The company’s servers—many of which are powered by Nvidia’s high-performance chips—have become essential infrastructure for training and deploying massive AI models.

In early 2024, Super Micro’s stock hit an all-time high amid the generative AI frenzy, peaking at over $1,200 per share. However, the stock has since dropped by approximately 60% from that high, in part due to concerns over accounting transparency and weaker-than-expected forward guidance.

Still, Liang remains optimistic.

“Our growth rate continues to be strong,” he asserted. “We are consistently innovating on our core technology, and we’re actively expanding our business scope. The opportunity to grow is still very large.”

A Regional Tech Push Backed by Global Giants

Liang’s renewed focus on Europe comes shortly after Nvidia CEO Jensen Huang made a high-profile tour across the continent, promoting AI development and sealing infrastructure partnerships. Huang’s message was clear: Europe needs to scale up its computing capabilities to stay competitive in the global AI race.

European nations appear to be responding. For example, Germany and France have both recently launched national AI strategies with significant funding, while the European Union is rolling out regulatory frameworks to support AI deployment across industries—from healthcare to automotive.

According to IDC, Europe’s AI spending is expected to grow at a compound annual growth rate (CAGR) of 25.5% between 2023 and 2027, reaching nearly $100 billion by the end of the period. This surge in demand is creating enormous opportunities for companies like Super Micro that build the foundational hardware for AI systems.

Financial Woes Easing?

Investors were rattled earlier this year when Super Micro delayed filing its annual financial report. However, in February, the company released its overdue financials for fiscal 2024, which helped ease market concerns. The company reported over $14.5 billion in annual revenue, up from $7.1 billion the previous year—more than doubling year-over-year.

Yet, in May, the company issued weaker guidance for the upcoming quarter, raising fresh questions about whether AI demand was cooling. Liang pushed back against this narrative. “It’s not a slowdown—it’s a recalibration,” he explained. “AI adoption is still in early innings. We’re just getting started.”

Looking Ahead

With new investments planned and demand surging in Europe and beyond, Super Micro is positioning itself as a long-term player in the AI infrastructure race. Its pivot to Europe could prove to be a smart hedge against geopolitical risk and supply chain fragility in other regions.

“Our foundation is strong, our vision is clear, and our market is expanding faster than ever,” Liang concluded. “We’re not just following trends—we’re building the future of computing.”