Supermicro forecasts quarterly revenue above estimates, after Q1  sales jump to record amid AI datacenter transformation

Overview

• AI datacenter hardware maker's preliminary Q1 revenue surged, beating analyst expectations

• Adjusted EPS for preliminary Q1 beat analyst expectations

• Company says transformation to total AI and IT datacenter solutions drove results

• Shares of the company were up about 6% in extended trading

Outlook

• Supermicro expects Q2 FY2027 net sales of $19.5 bln to $21.5 bln, vs analysts' estimate of $17.14 bln

• Company sees Q2 GAAP EPS of $1.59 to $1.83, non-GAAP EPS of $1.66 to $1.90

• Super Micro Computer expects FY27 net sales of $72.0 bln to $82.0 bln

Result Drivers

• AI AND DATACENTER SOLUTIONS - Co said transformation into a total AI and IT datacenter solution provider helped drive record revenue

• EXPANDED CUSTOMER OFFERINGS - Co cited value from Data Center Building Block Solutions and expanding software, service, and networking solutions as enhancing profitability

• ENTERPRISE PARTNERSHIPS AND PRODUCTION CAPACITY - Co pointed to key enterprise partnerships and expanding global production capacity as supporting AI infrastructure deployment

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Super Micro Computer Inc is $45.00, about 47.8% above its November 2 closing price of $30.44

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 2 - Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales

• Nov 2 - Palantir forecasts strong quarterly revenue on AI demand

• Nov 3 - Drax, Brookfield partner on $27 billion AI data centre in UK

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)