Super Micro Soars 12% as Preliminary Revenue Blows Past Guidance on “Increased Demand for AI Platforms”
Yahoo Finance ·
Super Micro shares jumped 12% today after the company said fiscal first-quarter revenue should come in at $18.5 billion to $19.5 billion, against guidance of $14.5 billion to $15.5 billion. The margin beat matters more than the revenue beat, because gross margin of 12.0% to 12.5% tops guidance of 10.4% to 10.8%. Dell, Hewlett Packard Enterprise and Vertiv rose with it, and Amkor climbed on a new NVIDIA capacity deal. Super Micro burned nearly $7 billion of free cash flow last fiscal year, so its Nov. 3 earnings call has to show the bigger quarter turning into cash. Super Micro Computer ( SMCI ) is up 12% today after saying its September quarter came in far ahead of its own forecast, on “increased demand for AI platforms.” After Tuesday’s close, Super Micro said it now expects fiscal first-quarter revenue of $18.5 billion to $19.5 billion, against guidance of $14.5 billion to $15.5 billion. At the midpoint, that’s $4 billion more than planned, and up from $11.1 billion in the June quarter. Rivals rode along: Dell Technologies ( DELL ) is up 5% and Hewlett Packard Enterprise ( HPE ) is up 3%. NVIDIA’s own news this morning added to the rally. Vertiv ( VRT ) is up 6% after NVIDIA named it a partner in its factory-built DSX POD AI factories. Amkor Technology ( AMKR ) is up 3% after a $1.3 billion investment in South Korea, which takes Amkor’s multi-year capacity deals with NVIDIA to $3 billion. TIKR tracks 18 analysts on Super Micro Computer. How many say “Buy”? See the full breakdown of Buy, Hold, and Sell ratings on Super Micro Computer, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Super Micro Computer’s Analyst Ratings Super Micro also expects gross margin of 12.0% to 12.5%, against guidance of 10.4% to 10.8%, on a better customer and product mix. At the midpoints, that’s almost half again as much gross profit on about a quarter more revenue. Full-year margins slid from 18.0% in fiscal 2023 to 10.8% last year… The June quarter’s 17.5% broke that pattern, but management then guided this quarter back down. The new range holds on to more of that gain than management planned for. Margins also drive earnings here. Analysts expected revenue to jump 72% this fiscal year but earnings only about 20% . Consensus normalized EPS of $4.34 for the year to June 2027 is still just 20% above last year’s $3.63… A quarter this far above guidance, at a better margin, should push that $4.34 higher. Super Micro burned nearly $7 billion of free cash flow in the year to June 2026, after bringing in $1.5 billion the year before… Operating cash flow did turn positive in the June quarter, at $747 million. New CFO Mark Long, named Oct. 15, faces his first test on the Nov. 3 call at 5 p.m. ET. My take: more revenue at better margins is the best version of this news, and it gives earnings estimates room to climb. For Dell, HPE and Vertiv, it says AI buyers are still spending. Of course, these figures are preliminary and unaudited. Nov. 3 will show how much of the quarter turned into cash and how much is sitting in inventory. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Super Micro could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use. Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
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