Super Micro forecasts upbeat annual revenue on data center adoption

By Juby Babu

Aug 11 (Reuters) - 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% 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.

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%, ahead of Super Micro's preliminary estimate of 15% to 17% and ​its initial forecast of 8.2% to 8.4%.

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.

(Reporting by Juby Babu in Mexico City; Editing by ‌Shreya Biswas)

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