Super Micro forecasts upbeat annual revenue on data center adoption
Super Micro Computer (SMCI) logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Aug 11 : Super Micro Computer forecast fiscal 2027 revenue above Wall Street expectations on Tuesday, betting that strong demand for its AI-optimized servers would fuel another year of growth, sending its shares up 7 per cent in extended trading.
The server maker has benefited from the race to equip data centers for generative AI, thanks to its close ties with chipmakers and reputation for speed-to-market.
AI infrastructure firms have seen demand surge as tech and cloud companies ramp up data center investments to support AI applications.
Big Tech companies have signaled that spending on AI would not slow down, with combined outlays set to surpass $730 billion this year.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Super Micro expects annual revenue between $65 billion and $72 billion, above analysts’ average estimate of $52.50 billion, according to data compiled by LSEG.
Gross margins for the fourth quarter ended June 30 stood at 17.5 per cent, ahead of Super Micro’s preliminary estimate of 15 per cent to 17 per cent and its initial forecast of 8.2 per cent to 8.4 per cent.
On a post-earnings call, finance chief David Weigand credited the sequential improvement to a better-than-anticipated customer and product mix, including the deferral of several contracts to the first quarter.
“Margins improving while volume is set to nearly double next quarter suggests the company has operational leeway, and is not facing industry-wide constraints,” said Gadjo Sevilla, senior analyst at Emarketer.
Margins beating Super Micro’s forecast and the guidance coming in ahead of expectations indicate that “the margin-recovery skepticism is being answered with hard numbers rather than promises.”
Revenue nearly doubled to $11.12 billion in the fourth quarter, below estimates of $11.55 billion and at the low end of Super Micro’s prior forecast of $11 billion to $12.5 billion, as signaled in July. CEO Charles Liang attributed this to short-term customer delays in power, cooling and networking.
In fiscal 2026, Super Micro counted nine customers generating more than $1 billion in revenue each, up from four such customers a year earlier.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
