Super Micro lifts outlook on AI server demand

Super Micro Computer raised its outlook for the current quarter and full fiscal year after strong demand for its AI-optimized servers drove revenue and profit above expectations. The company now expects second-quarter fiscal 2027 revenue between $19.5 billion and $21.5 billion, ahead of analyst estimates. It also forecasts fiscal 2027 revenue in a range of $72.0 billion to $82.0 billion, increasing its previous full-year guidance.

Shares rose about 6% in extended trading after the guidance update, reflecting investor reaction to the stronger outlook. The company cited continued strength in AI infrastructure spending and demand for servers equipped with advanced artificial intelligence chips.

For its most recent reported quarter, covering the period ended September 30, Super Micro generated revenue of about $19.9 billion, exceeding analyst estimates that were broadly in the mid-$16 billion range. Revenue was $19.95 billion.

Adjusted earnings came in at $1.81 per share, beating consensus estimates of $1.23 per share. Gross margin improved to 12.7%, ahead of an earlier preliminary estimate of 12.0% to 12.5%. The company described the quarter as delivering record revenue for its fiscal 2027 first quarter.

Revenue growth was also strong compared with the prior year, with sales rising to $19.9 billion from $5 billion in the year-earlier quarter. The performance followed a preliminary update in which Super Micro had projected revenue of $18.5 billion to $19.5 billion, and final revenue came in above the top of that range.

Alongside the revenue outlook for the December quarter, Super Micro projected adjusted earnings of $1.66 to $1.90 per share. Analyst expectations for that period had been lower, with consensus estimates near $1.08 to $1.14 per share, indicating that the company anticipates stronger profitability than previously assumed.

For the full fiscal year 2027, the company’s revenue forecast of $72.0 billion to $82.0 billion compares with analyst estimates around $69–$70 billion. The midpoint of its new range, at $77 billion, sits above those expectations. Super Micro said its transformation into a total AI and IT datacenter solution provider continues to accelerate, underpinned by demand for AI servers and storage platforms, including systems built around Nvidia (NVDA)’s accelerated computing technology.

Super Micro’s stock closed at $31.46 before the latest earnings release. Over the past three months, the share price has risen 1.06%, while over the last 12 months it has declined 33.63%. The 6% move in extended trading followed the company’s earnings and guidance announcement.

Amid its rapid growth, the company has also faced regulatory scrutiny. A contractor pleaded guilty in October to charges related to the illegal export of Super Micro servers containing advanced Nvidia (NVDA) AI chips to China. The case has drawn attention to compliance risks surrounding the sale and distribution of high-performance computing hardware.