Super Micro Computer Inc. SMCI guided for higher fourth quarter revenue during its earnings call on Tuesday. The company anticipated strong demand for artificial intelligence infrastructure solutions, specifically those powered by Nvidia Corp.’s NVDA Blackwell GPUs.
What Happened: Despite reporting third-quarter revenue that fell short of its initial forecast, the company anticipates a significant upswing in the current quarter, projecting net sales in the range of $5.6 billion to $6.4 billion.
The company’s third-quarter performance saw net revenue reach $4.6 billion, a 19% increase year-over-year but a 19% decrease quarter-over-quarter.
This dip, as explained by CEO Charles Liang during the earnings call, was primarily attributed to customers delaying commitments as they evaluated AI platforms based on the current Hopper architecture versus the upcoming Blackwell GPUs.
However, Liang expressed strong optimism for the coming quarters. “We expect many of these engagements to materialize in the June and September quarters, strengthening our confidence in meeting our long-term growth targets as we close out this eventful fiscal year,” he stated.
He further emphasized that Blackwell is now in full volume production, leading to increasing order momentum.
The anticipated growth in the fourth quarter is heavily reliant on the ramp-up of Blackwell-based systems. Supermicro highlighted its “first-to-market” advantage with new generation AI products, including air-cooled 10U and liquid-cooled 4U NVIDIA B200 HGX systems, as well as GB200 NVL72 racks.
The company has also begun offering solutions featuring AMD’s MI-325X GPUs, further broadening its AI portfolio. Looking ahead, SMCI is poised to offer platforms based on NVIDIA’s B300 and GB300, and Advanced Micro Devices Inc.’s AMD MI-350 this summer.
Why It Matters: While the near-term macroeconomic environment and tariff uncertainties were acknowledged as potential headwinds, Supermicro’s global manufacturing footprint, including expanding facilities in the US, Taiwan, and Malaysia, positions it to navigate these challenges.
The company also reported a strong cash flow from operations in Q3 at $627 million and a positive net cash position.
SMCI reported quarterly earnings of 31 cents per share, which missed the analyst consensus estimate of 50 cents by 38%. Quarterly revenue came in at $4.6 billion, which missed the analyst consensus estimate of $5.42 billion by 15.1%.
Shares ended 2.39% higher on Tuesday and fell by 4.77% in after-hours. It has gained 9.62% on a year-to-date basis and fallen 59.79% over a year.
Benzinga Edge Stock Rankings shows that SMCI had a weak price trend over the short, medium, and long term. Its momentum ranking was weak at 29.32th percentile, whereas its value ranking was good at 72.94th percentile; the details of other metrics are available here.
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