Shares of Super Micro rose by 36% due to improvement in initial results.

super micro computerTech stocks, one of the best-performing in the past few years, surged 36% to a record high on Friday after the maker of data center hardware released better-than-expected preliminary financial results.

The company said revenue for the fiscal second quarter ending Dec. 31 will come in at $3.6 billion to $3.65 billion, significantly higher than prior guidance of $2.7 billion to $2.9 billion. Analysts on average were expecting revenue of $3.06 billion, according to LSEG, formerly known as Refinitiv.

Adjusted earnings will be between $5.40 and $5.55 per share, up from previous guidance of $4.40 to $4.48 per share.

The rise comes after Super Micro’s stock surged 246% last year and is forecast to rise 87% in 2022. Since the end of 2018, the stock has climbed nearly 30-fold, meaning a $10 million bet was made on the company five years ago. That resulted in a stake worth about $300 million today.

Manufactures super microcomputers and sells them to companies, which use them as servers for websites, data storage, and applications such as artificial intelligence algorithms. Wedbush Securities analysts said in a note Friday that Super Micro’s sales are “mostly dependent” nvidia’s Allocation of its graphics processing units, which are at the heart of the AI ​​boom.

Nvidia’s revenue more than tripled in the third quarter from a year earlier due to increased demand from cloud and Internet companies for its GPUs. Analysts expect similar growth in the fourth quarter.

Based on the midpoint of Super Micro’s guidance range, the 30-year-old company expects revenue in the December quarter to double from a year earlier. Super Micro’s full earnings report is scheduled to be released later this month.

“The magnitude of the good news will really depend on the details,” Wedbush analysts wrote while maintaining a neutral rating on the stock. “We will await SMCI’s report and earnings call for additional color before reconsidering the implications of our forward assumptions and our company’s outlook.”

At Friday’s close, Super Micro shares rose to $423.36, taking the company’s market cap to more than $23 billion. Its highest prior closing price was $353.29 in August last year.

Watch: CNBC Interview with Super Micro CEO Charles Liang

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