Super Micro Computer says a $60 billion AI order book and record backlog support fiscal 2027 revenue guidance of $65 billion to $72 billion, up from $39.1 billion in fiscal 2026. The company guided fiscal first-quarter gross margin to 10.4%-10.8%, well below the prior quarter as product mix normalizes.
Super Micro Computer entered fiscal 2027 with a $60 billion AI order book and a revenue target of as much as $72 billion, a 84% increase over the $39.1 billion it booked in fiscal 2026 — a backlog that now has to survive contact with a gross margin reset to roughly 10.5%.
"The outlook reflects continued AI infrastructure demand, record backlog and increasing contributions from enterprise, sovereign AI, NeoCloud and agentic AI opportunities," the San Jose, California-based company said in its fiscal 2027 guidance.
The numbers behind that claim are unusually lopsided. SMCI generated more than $60 billion in new orders during its fiscal fourth quarter alone, a figure larger than its entire fiscal 2026 revenue. Full-year fiscal 2027 guidance of $65 billion to $72 billion implies growth of 66% to 84%. For the fiscal first quarter, management guided to $14.5 billion to $15.5 billion in net sales and non-GAAP adjusted earnings of $1.01 to $1.10 per share. AI solutions accounted for about 60% of fourth-quarter fiscal 2026 revenue because several large projects shifted timing; management expects AI-related products to exceed 80% of revenue going forward based on the backlog.
The catch sits in the margin line. SMCI guided fiscal first-quarter non-GAAP gross margin to 10.4% to 10.8%, well below the unusually strong fourth-quarter level, which management attributed to customer and product mix normalizing. At the midpoint of the revenue guide, that margin band implies roughly $1.6 billion in quarterly gross profit. The company's forward price-to-earnings ratio of 8.94 times compares with an industry average of 10.36 times and the S&P 500's 18.52 times, while its price-to-sales ratio of 0.67 times sits against an industry figure of 5.32 times — a discount the market is applying to exactly this conversion risk.
The order book is only half the story. SMCI is pushing beyond stand-alone servers into what it calls Data Center Building Block Solutions, or DCBBS — a bundle that folds GPU and CPU servers, enterprise storage, direct liquid cooling, power infrastructure, high-speed switches, networking, data-center management software and lifecycle services into a single deployment. The pitch is shorter time-to-deployment and time-to-online for customers building AI halls, and it moves SMCI into territory occupied by Vertiv, Schneider Electric and Legrand on the power and cooling side.
Liquid cooling is the sharpest edge of that strategy. Rising rack density has made direct liquid cooling a gating factor for AI deployments, and SMCI said most of its DLC production lines support dense 250-kilowatt-class racks. That is roughly 10 times the power draw of a conventional enterprise rack, and it is the reason cooling has moved from a facilities afterthought to a line item that can decide whether a GPU cluster ships on schedule. The company is also expanding software tools including SuperCloud Composer, Super Micro Data Center Manager and Super Micro Orchestration Manager, with more features and service products expected early in fiscal 2027.
The customer base is broadening in parallel. SMCI shipped volume products across Nvidia's GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro lines in the fourth quarter and is preparing systems for Nvidia's Vera Rubin and Vera CPU platforms. It launched AMD's Helios product line and MI450 Total Solution while continuing to support MI350 and MI355X systems, and Intel Xeon 6+ platforms are shipping in volume. The company is also developing systems for Arm-based AGI processors. That silicon breadth is the mechanism behind the diversification claim: each new platform is a new design win, and each design win is a chance to sell a full rack rather than a board.
Wall Street has been marking the estimates up rather than down. The Zacks Consensus Estimate for current-year earnings improved 30.3% over the last 30 days, and the next-year estimate rose 42.2% over the same period. Expected revenue and earnings growth for the year ending June 2027 stand at 71.8% and 22% respectively, with next-year growth of 19.6% and 18.7%. The stock has climbed 35% year to date yet trades 32.6% below its 52-week high.
The gap between those estimate revisions and the valuation multiple is the whole argument. A 0.67 times price-to-sales ratio on a company guiding to $65 billion to $72 billion in revenue means the market is not disputing the order book — it is discounting the probability that the orders convert at the guided margin and on the guided schedule. Customer concentration is the other variable: Nvidia, AMD and Intel are both suppliers and, through their platform ecosystems, demand anchors, and a single delayed hyperscaler deployment can move a quarter's revenue by billions. Investors get the next hard datapoint when SMCI reports fiscal first-quarter results, where the 10.4% to 10.8% gross margin guide either holds or breaks.
This article is for informational purposes only and does not constitute investment advice.
