According to a research report published by Goldman Sachs, the results of ultra-microcomputers for the third quarter of fiscal year 2024 were generally in line with expectations, with revenue of US$3.85 billion compared to the forecast of US$3.96 billion; gross profit recorded US$601 million compared to the forecast of US$593 million. Additionally, the Group's revenue guidance for the 2024 fiscal year was raised to between US$14.7 billion and US$15.1 billion, which means that the estimated revenue for the fourth fiscal quarter is between US$5.1 billion and US$5.5 billion. However, considering rising sales costs due to upcoming liquid cooling components, the company predicts that gross margin will decline on a quarterly basis.

The bank said that although the market is concerned about AI server sales and industry competition or potential profit dilution, ultra-micro computers have reaffirmed their long-term target of a gross margin of 14 to 17%. The bank believes that the increase in product costs brought about by liquid cooling should return to normal over time. Additionally, the Group mentioned that additional capital may be needed to support growth. Additionally, Ultramicrocomputer is expected to deliver more than 1,000 direct liquid cooling (DLC) systems for NVIDIA HGX AI supercomputers to 3 leading customers in the fourth fiscal quarter. The group said the monthly production of its AI servers is expected to exceed 2,000 DLC systems. The bank said that considering the high profit margin prospects of ultra-microcomputers, it raised the average earnings per share for the 2024-26 fiscal year by 7%, but lowered the target price from 937 US dollars to 800 US dollars, and rated it “neutral.”