Shares of Super Micro Computer (SMCI 2.48%) rallied on Wednesday after the computing infrastructure supplier announced strong artificial intelligence (AI)-fueled growth.
As of 3:10 p.m. EST, Supermicro's stock price was up more than 15%.
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AI-driven revenue gains
Supermicro's net sales soared 123% year over year to $12.7 billion in its fiscal 2026 second quarter, which ended on Dec. 31.
The computer hardware maker's new Data Center Building Block Solutions (DCBBS) are proving popular with AI-focused customers. These modular systems offer an integrated array of tools, including networking, storage, and cooling equipment; high-performance servers; software; and professional services.
"With our leading AI server and storage technology foundation, strong customer engagements, and expanding global manufacturing footprint, we are scaling rapidly to support large AI and enterprise deployments," CEO Charles Liang said in a press release.
NASDAQ: SMCI
Key Data Points
Yet as Supermicro sells more of its products to larger tech companies with pricing leverage, its profit margins are coming under pressure. Supermicro's adjusted gross margin declined to 6.4%, down from 11.9% in the year-ago quarter.
All told, Supermicro's adjusted earnings per share increased 17% to $0.69. That bested Wall Street's expectations, which had called for per-share profits of $0.49.
A bullish growth forecast
Looking ahead, Supermicro projects net sales of $12.3 billion in its fiscal third quarter, with adjusted earnings per share of $0.60. For the full year, management sees sales of at least $40 billion, up from $22 billion in fiscal 2025.
"Our DCBBS, Data Center Building Block Solutions, enable customers to scale faster, greener, and at lower cost," Liang said. "Supermicro is well-positioned to capture the next wave of AI and IT infrastructure demand."
