Data center infrastructure company Supermicro (SMCI) reported its first-quarter results after the bell on Tuesday, beating Wall Street’s top and bottom line expectations and delivering a better-than-expected outlook for the second quarter.
The company said it expects second-quarter sales of between $19.5 billion and $21.5 billion. Analysts were calling for $16.35 billion.
Supermicro stock rose more than 5% immediately following the news.
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“Supermicro’s transformation into a total provider of AI and IT data center solutions continues to accelerate, generating record revenue of $19.9 billion for the first quarter of fiscal 2027,” CEO Charles Liang said in a statement.
“(Data Center Building Block Solutions) generates significant value for our customers – from gigawatt-scale data centers to single-container PODs – that, including our expanding software, proactive service and networking solutions, improve profitability and long-term shareholder value. Through key enterprise partnerships and the expansion of global production capacity, we are making AI infrastructure faster to deploy, with higher availability and more cost-effective for our customer base.
For the quarter, the company reported earnings per share (EPS) of $1.81 and revenue of $19.95 billion, well ahead of Wall Street projections and the company’s preliminary results.
Gross margins exceeded 12.8%, also surpassing Supermicro’s preliminary figures of between 12% and 12.5%.
Supermicro stock has fallen 27% over the past month after Gartner published a report claiming that 80% of neocloud companies would cease operations by 2030 due to a lack of return on invested capital.
Neoclouds CoreWeave (CRWV) and Nebius (NBIS) plunged on the news and are down 40% and 37%, respectively, over the past month. CoreWeave is a Supermicro client.
Supermicro stock has had a rough year, falling 38% over the past 12 months amid questions about its profitability.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on @DanielHowleyor contact Signal or Telegram.
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