MW Super Micro logs record revenue from AI demand, and the stock surges
By Christine Ji
Super Micro's revenue exploded to $12.7 billion as delayed orders finally materialized, but aggressive competition and rising costs pushed gross margins to a razor-thin 6.3%
Super Micro anticipates at least $40 billion of revenue for the fiscal year ending June 2026.
Investors were pleasantly surprised on Tuesday by Super Micro's Computer's second-quarter earnings, as the maker of computer hardware topped Wall Street expectations and provided proof that some delayed orders from last year finally materialized.
Super Micro $(SMCI)$, which produces computer hardware and infrastructure, reported revenue of $12.7 billion, which the company called a record and represents a 123% year-over-year increase. Adjusted earnings came out to 69 cents for the quarter. Analysts polled by FactSet were anticipating $10.4 billion in revenue and diluted earnings per share of 49 cents.
Shares of Super Micro jumped 7% in after-hours trading following the results.
However, Super Micro's gross margin for the December quarter was 6.3%, down from 9.3% in the previous quarter and lower than the 6.5% management had guided for on the previous earnings call.
The company is experiencing "near-term margin pressure" thanks to customer mix and supply-chain issues, but its focus on enterprise customers "support a higher gross and net margin going forward," CEO Charles Liang said on a call following the results.
In a note Monday, Wedbush analyst Dan Ives wrote that recent surges in memory prices could represent "somewhat greater headwinds" for Super Micro relative to its peers due to the company's "opportunistic" sourcing strategies. Additionally, while the artificial-intelligence boom has fueled record demand for NVIDIA $(NVDA)$ chip clusters, this high-volume business yields thinner margins than Supermicro's legacy enterprise server segment.
See more: The memory-chip price surge claims another victim, and the stock drops 8%.
Shares of Super Micro have fallen more than 40% in the last three months due to increasing competition and mounting skepticism of management's financial guidance.
Last quarter, Super Micro reported revenue of $5 billion, missing analyst expectations of revenue between $6 billion and $7 billion. The company said the miss was the result of $1.5 billion in revenue slipping into the December quarter because a major customer requested last-minute updates to their server designs. This quarter's revenue beat proved that the previously mentioned revenue shift was indeed real.
Super Micro provided optimistic forward projections as well on Tuesday. The company anticipates sales of at least $12.3 billion for the current quarter, surpassing the $10.2 billion forecast by Wall Street analysts.
For the 2026 fiscal year ending in June, Super Micro is projecting at least $40.0 billion in sales. Wall Street consensus is $36.4 billion in sales.
Read: Super Micro's latest financial update adds to credibility concerns
-Christine Ji
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February 03, 2026 17:50 ET (22:50 GMT)
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