Super Micro Q1 Revenue Nearly Quadruples To $20B On AI Server Demand

Super Micro Computer Inc. reported net sales of $19.95 billion for the quarter ended Sept. 30, up 298% from $5.02 billion a year earlier, and said diluted earnings per share reached $1.81. The company also raised its fiscal 2027 sales outlook to $72 billion to $82 billion.

Quarterly Results

Net income for the quarter ending Sept. 30 soared to $1.59 billion, yielding diluted earnings per share of $1.81, comfortably beating Wall Street projections of around $1.23. Net sales nearly quadrupled from the same period last year, reaching $19.95 billion.

AI Demand And Outlook

Chief Executive Officer Charles Liang attributed the quarter to the accelerating global transition toward total AI and IT data center solutions. "Through key enterprise partnerships and expanding global production capacity, we are making AI infrastructure faster to deploy, superior in uptime, and more cost-effective for our customer base," Liang said. For the three months ending in December, the company expects net sales between $19.5 billion and $21.5 billion and diluted net income per share between $1.66 and $1.90 on an adjusted basis. Super Micro also raised its annual sales outlook to $72 billion to $82 billion, up from its prior target of $65 billion to $72 billion.

Customer Concentration

Chief Financial Officer Mark Long said a single large data center customer accounted for 44% of revenue during the quarter, while two individual clients represented major portions of accounts receivable. "Concentration at this level is a consequence of the scale at which AI infrastructure is now being built," Long said. "A single deployment today can exceed our total quarterly revenue from just one year ago. We expect concentration to stay elevated while these build-outs run, and to moderate as our enterprise and sovereign businesses grow."

Market Reaction

SMCI shares rose 10% after hours on Tuesday. Retail sentiment on Stocktwits was "bullish" with "high" message volumes, and the stock has gained about 4.4% year to date.

Sources: Yahoo Finance · Reuters · Supermicro · Techmeme