SMCI Stock Soars As Revenue More Than Doubles

• Adjusted gross margin of 10.1% tops analysts’ estimates of 6.75%.
• Adjusted profit was $0.84 a share, compared with analysts’ average estimate of $0.63.
• Lowered 2026 revenue guidance to $38.9 billion and $40.4 billion, down from previous guidance of $40 billion.

Super Micro Computer (SMCI) shares soared 19% after-hours on Tuesday after the artificial intelligence server maker’s fiscal third quarter revenue more than doubled and furnished guidance that was above Wall Street's estimates. 

SMCI’s third-quarter revenue more than doubled to $10.2 billion, but failed to meet analysts’ average estimate of $12.45 billion, according to data from Fiscal.ai.  

The company reported an adjusted gross margin of 10.1% in the quarter ending March that topped analysts’ estimates of 6.75%, signaling controlled costs. Adjusted profit was $0.84 a share, compared with analysts’ average estimate of $0.63.

With the addition of new manufacturing facilities in Silicon Valley, the company is well-positioned to meet growing demand for artificial intelligence and enterprise verticals, said Chief Executive Charles Liang.

“Supermicro’s transformation into a total datacenter infrastructure provider is accelerating.”

The company, of late, has struggled with accounting compliance problems on the back of an ongoing internal investigation tied to $2.5 billion in smuggling and export-control allegations involving former associates, which appear to be in the rearview as the firm’s robust guidance has led investors to believe in a strong order pipeline. 

SMCI specializes in high-performance computing (HPC) infrastructure, providing the physical hardware that powers data centers, cloud services, and artificial intelligence. 

SMCI Q4 Guidance 

The company expects earnings of $0.65 to $0.79 a share in the period ending June 30 and revenue of $11 billion to $12.5 billion. Analysts polled by Fiscal.ai projected, on average, a profit of $0.57 on a revenue of $11.2 billion for the June quarter. 

However, the company tweaked its full-year outlook, as it now sees sales between $38.9 billion and $40.4 billion, down from a prior view of at least $40 billion. 

SMCI Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘extremely high’ message volumes. 

One user expressed bullishness by saying SMCI could be the next Micron Technology (MU) or Sandisk (SNDK).

The stock has lost 5% of its value so far this year. 

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