Tech & AI
Supermicro Sales Nearly Quadruple to $19.9 Billion, Guidance Lifted to Up to $82 Billion
The AI server maker's first-quarter revenue beat its own raised forecast, though gross margin fell sharply from the prior quarter.
HedgeWeekly Tech & AI Desk ·
Super Micro Computer, which builds the servers that house AI chips, reported net sales of $19.9 billion for the quarter ended September 30, up about 297% from $5.0 billion a year earlier and from $11.1 billion in the previous quarter. It posted net income of $1.59 billion, or $1.75 a diluted share, against $168 million a year ago.
The company guided to sales of $19.5 billion to $21.5 billion for the December quarter and $72 billion to $82 billion for the full fiscal 2027 year. In October it had pre-announced a range of $18.5 billion to $19.5 billion, citing stronger demand for AI platforms.
Profitability thinned. Gross margin was 12.7%, up from 9.3% a year earlier but down from 17.5% in the prior quarter, and operating cash flow was negative $434 million. Adjusted earnings of $1.81 a share topped the $1.62 that analysts had modelled, and the $72 billion low end of guidance sat above the $69.17 billion consensus cited by Startup Fortune. Shares, which closed at $31.46, rose almost 10% in after-hours trading.
Why it matters: Supermicro is a read-across for AI server demand, because it assembles systems largely around Nvidia chips and competes with Dell. The revenue surge supports the case that spending by the largest cloud companies, which have guided to roughly $600 billion of combined 2026 AI capital expenditure, is still flowing. But the margin drop and reliance on a handful of big customers are the points sceptics will watch, along with cash conversion and whether the next quarter lands inside the guided range.