European Investor
12 Aug 2026, 09:09
Supermicro Stock Jumps 9.3% as AI Demand Drives Record Backlog and Strong FY2027 Outlook
Super Micro Computer (NASDAQ: SMCI) shares jumped 9.3% in premarket trading Wednesday after the AI server maker reported strong fiscal fourth-quarter results, a sharp recovery in margins and an aggressive fiscal 2027 revenue outlook.
The rally appears to be driven particularly by accelerating AI infrastructure demand, record backlog and management’s expectation that annual sales could approach $72 billion in the new fiscal year.
Q4 Sales Nearly Double as Profitability Surges
Supermicro reported fiscal Q4 net sales of $11.1 billion, up from $10.2 billion in the previous quarter and $5.8 billion a year earlier, representing approximately 91% year-over-year growth.
Profitability improved even more dramatically. Gross margin climbed to 17.5% from 9.9% in Q3 and 9.5% a year earlier, addressing one of the key concerns surrounding Supermicro as rapid AI-server growth had previously put pressure on margins.
Net income surged to $1.18 billion from $195 million a year earlier, while diluted EPS increased to $1.62 from $0.31. On an adjusted basis, EPS reached $1.70, compared with $0.41 in Q4 2025.
The combination of rapid revenue growth and recovering margins indicates that Supermicro is increasingly converting the AI infrastructure boom into stronger profitability rather than simply higher sales volumes.
AI Infrastructure Demand Remains the Main Growth Engine
Supermicro remains one of the major hardware beneficiaries of global spending on AI data centers. Its server and data-center systems are designed for high-density GPU computing, positioning the company directly within the ongoing expansion of AI infrastructure.
CEO Charles Liang said Supermicro generated more than $60 billion in new orders during fiscal 2026 and entered fiscal 2027 with record backlog. The company also added several hundred enterprise and other customers during the year.
Management attributed improving profitability partly to a richer enterprise customer mix and greater adoption of its Data Center Building Block Solutions architecture, which is designed to accelerate large-scale AI infrastructure deployments.
Supermicro Targets Up to $72 Billion in FY2027 Revenue
The outlook provided another major catalyst for SMCI shares.
For fiscal Q1 2027, Supermicro expects sales of $14.5 billion to $15.5 billion, representing roughly $15 billion at the midpoint and a substantial sequential increase from Q4's $11.1 billion. Non-GAAP EPS is forecast between $1.01 and $1.10.
More importantly, Supermicro expects full-year fiscal 2027 revenue of $65 billion to $72 billion. At the midpoint of $68.5 billion, that would represent approximately 75% growth from fiscal 2026 revenue of $39.1 billion.
The 9.3% premarket rally reflects investor confidence that Supermicro's AI-driven growth cycle remains intact. Record backlog, accelerating sales expectations and the sharp Q4 margin recovery provide evidence that the company is strengthening its position as a major supplier of infrastructure for increasingly large and complex AI data centers.
Super Micro Computer (NASDAQ: SMCI) shares jumped 9.3% in premarket trading Wednesday after the AI server maker reported strong fiscal fourth-quarter results, a sharp recovery in margins and an aggressive fiscal 2027 revenue outlook.
The rally appears to be driven particularly by accelerating AI infrastructure demand, record backlog and management’s expectation that annual sales could approach $72 billion in the new fiscal year.
Q4 Sales Nearly Double as Profitability Surges
Supermicro reported fiscal Q4 net sales of $11.1 billion, up from $10.2 billion in the previous quarter and $5.8 billion a year earlier, representing approximately 91% year-over-year growth.
Profitability improved even more dramatically. Gross margin climbed to 17.5% from 9.9% in Q3 and 9.5% a year earlier, addressing one of the key concerns surrounding Supermicro as rapid AI-server growth had previously put pressure on margins.
Net income surged to $1.18 billion from $195 million a year earlier, while diluted EPS increased to $1.62 from $0.31. On an adjusted basis, EPS reached $1.70, compared with $0.41 in Q4 2025.
The combination of rapid revenue growth and recovering margins indicates that Supermicro is increasingly converting the AI infrastructure boom into stronger profitability rather than simply higher sales volumes.
AI Infrastructure Demand Remains the Main Growth Engine
Supermicro remains one of the major hardware beneficiaries of global spending on AI data centers. Its server and data-center systems are designed for high-density GPU computing, positioning the company directly within the ongoing expansion of AI infrastructure.
CEO Charles Liang said Supermicro generated more than $60 billion in new orders during fiscal 2026 and entered fiscal 2027 with record backlog. The company also added several hundred enterprise and other customers during the year.
Management attributed improving profitability partly to a richer enterprise customer mix and greater adoption of its Data Center Building Block Solutions architecture, which is designed to accelerate large-scale AI infrastructure deployments.
Supermicro Targets Up to $72 Billion in FY2027 Revenue
The outlook provided another major catalyst for SMCI shares.
For fiscal Q1 2027, Supermicro expects sales of $14.5 billion to $15.5 billion, representing roughly $15 billion at the midpoint and a substantial sequential increase from Q4's $11.1 billion. Non-GAAP EPS is forecast between $1.01 and $1.10.
More importantly, Supermicro expects full-year fiscal 2027 revenue of $65 billion to $72 billion. At the midpoint of $68.5 billion, that would represent approximately 75% growth from fiscal 2026 revenue of $39.1 billion.
The 9.3% premarket rally reflects investor confidence that Supermicro's AI-driven growth cycle remains intact. Record backlog, accelerating sales expectations and the sharp Q4 margin recovery provide evidence that the company is strengthening its position as a major supplier of infrastructure for increasingly large and complex AI data centers.
