Supermicro Server Revenues Surge 50% to $21.3B; BofA Maintains Underperform
Supermicro’s server and storage revenues rose 50.2% year-over-year to $21.31 billion in fiscal 2025, supporting a $36 billion outlook for FY 2026 underpinned by strong Nvidia Blackwell AI server backlog. However, persistent shipment delays, volatile operations and supply-driven margin headwinds led Bank of America to maintain an Underperform rating on the stock.
1. Q2 Fiscal 2026 Earnings Conference Call Scheduled
Super Micro Computer, Inc. has set its second quarter fiscal 2026 earnings conference call for Tuesday, February 3, 2026 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The live webcast will be accessible on the company’s investor relations website, with a replay available shortly after the conclusion of the call and remaining online for one year. Management is expected to discuss revenue trends in AI/ML, Cloud and 5G/Edge solutions, provide updated guidance for Q3, and address supply chain dynamics that affected Q1 deliveries.
2. Bank of America Flags Margin Pressure Despite Strong AI Server Demand
According to a Bank of America research note published on Thursday, Super Micro’s revenue growth from AI server and rack solutions may be robust, but margin expansion faces headwinds. The note maintained an Underperform rating, citing ongoing cost pressures in component procurement and logistics. While AI-related system shipments grew by over 40% year-over-year in fiscal Q1, gross margins contracted by approximately 220 basis points sequentially, reflecting higher freight and component costs that the company has not fully offset through pricing.
3. Shipment Delays and Operational Risks Temper Near-Term Outlook
In a separate downgrade to Hold, analysts highlighted persistent shipment delays that deferred a portion of Q1 orders into Q2, raising questions about the sustainability of short-term revenue acceleration. Operational volatility—driven by ramping liquid-cooling capacity and integration of new manufacturing lines in Taiwan and the Netherlands—has added complexity to the delivery pipeline. Low single-digit operating margins in Q1 underscore these challenges, although long-term catalysts include expanded full-rack offerings and deeper integration with Nvidia’s latest GPU architectures.
4. Server and Storage Revenues Surge 50.2% as Fiscal 2025 Ends
Super Micro reported a 50.2% year-over-year increase in combined server and storage segment revenues for fiscal 2025, totaling $21.31 billion. This performance was driven by accelerated adoption of AI-optimized hardware and rack-scale systems sold into hyperscale cloud and enterprise data centers. The company has outlined a fiscal 2026 revenue outlook of approximately $36 billion, supported by a record backlog tied to Nvidia’s next-generation GPUs and ongoing expansion of in-house chassis and motherboard production aimed at improving total cost of ownership and environmental efficiency.