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Super Micro Says AI Demand Pushed Its Quarter Way Past Its Own Forecast

The server maker now estimates fiscal first-quarter revenue of $18.5 billion to $19.5 billion, well above its $14.5 billion to $15.5 billion guidance. The numbers are preliminary and unaudited.

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Tickers: SMCI

Open rack-mount AI servers with copper heatsinks and cooling fans sit on a blue factory assembly line beside shelves of parts.

Super Micro Computer ($SMCI) says last quarter's revenue will land well above what it told investors to expect. In a preliminary update on Tuesday, the company estimated revenue of $18.5 billion to $19.5 billion for its fiscal first quarter, which ended Sept. 30, against its own guidance of $14.5 billion to $15.5 billion. It credited "increased demand for AI platforms."

Analysts had been expecting a number inside the old range: $15.23 billion on average, according to LSEG data cited by Reuters, or $15 billion, according to data compiled by Bloomberg.

The number that's easier to skip is the margin. Super Micro now estimates gross margins of 12.0% to 12.5%, up from guidance of 10.4% to 10.8%, which it put down to customer and product mix. Reuters said analysts had expected 10.15%.

Two caveats. First, these are unaudited management estimates, and the company says actual results "may differ materially"; its auditor hasn't reviewed them, according to the filing. Second, the company gave no reason for reporting ahead of schedule, Bloomberg noted.

The update also lands a week after Super Micro named former Western Digital executive Mark Long as chief financial officer, nearly two years after it began searching amid scrutiny of its accounting practices, Reuters reported. The company will review full results on a call on Nov. 3 at 5 p.m. ET.

Sources

  1. Supermicro Provides First Quarter of Fiscal Year 2027 Preliminary Business Update, Super Micro Computer, Inc.
  2. Super Micro Computer Form 8-K, Exhibit 99.1, Super Micro Computer, Inc. (SEC filing)
  3. Super Micro sees quarterly revenue soaring on AI server boom, Reuters (via CNA)
  4. Super Micro preliminary results top estimates, Bloomberg (via The Business Times)

Tags: earnings · guidance · ai · semiconductors