SAN JOSE, California, August 28, 2026, 19:32 (EDT). Supermicro (SMCI) shares slid 3.6% after the company set a $69 billion sales target, putting further pressure on its efforts to restore profit margins.
- Shares of Supermicro dropped 3.6% to $37.08, wiping out roughly $960 million in market capitalization.
- Sales for fiscal 2026 climbed 78% to $39.1 billion, as gross margin for the entire year edged down to 10.8%.
- The projected fiscal 2027 revenue range of $65–$72 billion is about 30% higher than the earlier analyst consensus at its midpoint.
Super Micro Computer stock declined 3.6% on Friday, as investors considered a sharp sales projection while questioning the sustainability of a recent margin recovery. Shares ended the session at $37.08, with 29.1 million shares traded, under its 50-day average volume.
The drop erased roughly $960 million from Supermicro’s market capitalization. However, the company remains valued at approximately $25.7 billion, which represents just 0.66 times its projected fiscal 2026 sales.
The modest sales multiple is the result of slim and unpredictable hardware margins. Gross margin in fiscal 2026 was 10.8%, compared with 11.1% the previous year, even as revenue surged 78% to reach $39.1 billion.
The fourth quarter highlighted the ongoing debate. Revenue surged to $11.12 billion, almost twice the amount from the previous year, and gross margin climbed to 17.5%, up from 9.5% a year ago.
| Investor test | Latest figure | Comparison |
|---|---|---|
| Fiscal 2026 revenue | $39.1 billion | $22.0 billion in fiscal 2025 |
| Fiscal 2026 gross margin | 10.8% | 11.1% for fiscal 2025 |
| Fiscal Q4 gross margin | 17.5% | 9.5% in the same period last year |
| Fiscal 2027 revenue outlook | $65–$72 billion | $52.5 billion earlier consensus |
Management forecasts first-quarter revenue between $14.5 billion and $15.5 billion. For the full year, guidance is set at $65 billion to $72 billion, surpassing the previous analyst consensus of $52.5 billion.
The midpoint suggests annual growth of 75%. This valuation equates to approximately 0.37 times expected revenue, provided the target results in actual shipments.
Supermicro reports that its rack-scale systems help accelerate AI data center deployments. The company’s new Silicon Valley campus, spanning 714,000 square feet, boosts its U.S. capabilities for design, manufacturing and testing.
The key issue for investors has shifted beyond just demand. Now, the focus is on whether a stronger product mix, liquid cooling solutions and manufacturing scale will support gross margin staying above the fiscal-year threshold.
Significant risks persist. Major orders may move across quarters, infrastructure limitations could postpone acceptance, and intense server competition might pressure prices before volumes align with guidance.
The upcoming earnings release will need to verify both: quarterly revenue close to $15 billion and a margin that maintains the rebound seen in the fourth quarter.
Related articles: NASDAQ:SMCI
