Super Micro Computer (NASDAQ:SMCI) said demand for artificial intelligence infrastructure remains strong and that its growing order book, broader customer base and expanding portfolio of integrated data-center products support its fiscal 2027 outlook.
Speaking at the Goldman Sachs Communacopia and Technology Conference, Mike Staiger, Supermicro’s senior vice president of corporate development, pointed to the company’s $60 billion order book as a key foundation for the company’s outlook. Goldman Sachs analyst Kat Murphy referenced Supermicro’s fiscal 2027 revenue guidance of $65 billion to $72 billion.
Focus shifts toward integrated AI systems
Staiger said Supermicro’s engineering model is a central differentiator as AI infrastructure becomes more complex. The company works with multiple chip and platform partners and designs systems that can integrate processors, servers, racks and data-center infrastructure into what he described as a total solution or “AI factory.”
He said the company’s ability to bring new technology to market quickly, supported by an engineering-focused workforce and proximity to partners in Silicon Valley, helps it address different customer workloads and platform requirements. Supermicro can support products based on NVIDIA, AMD, Intel and Arm technologies, he said.
Staiger also discussed the company’s Data Center Building Block Solution, or DCBBS, strategy. The offering includes components such as power and cooling equipment, cooling distribution units, rear-door heat exchangers, storage, switching, cabling and management software. Supermicro designs nearly all of the components, while also working with partners on elements of the solution, he said.
The aim is to reduce the time required for customers to deploy operational systems. Staiger said customers that assemble infrastructure themselves can face compatibility and implementation challenges, while Supermicro’s integrated approach is intended to help customers bring systems online faster and improve reliability.
Solution mix seen supporting margins
Staiger said the company’s move toward more integrated offerings is expected to support a stable double-digit gross-margin profile. He said early AI infrastructure demand was characterized by a small number of large buyers and substantial price competition, but customers have since placed greater value on deployment speed, validation and system availability.
Supermicro has incorporated more content into its systems through its building-block approach, including cooling, power, storage, switching and software, he said. The company believes the higher-value integrated systems can help customers reduce downtime and accelerate revenue generation from their infrastructure.
“The focus is the solution to customer,” Staiger said. “As we do more on the DCBBS and we have more components that are more integrated, that we’re doing more ourselves, those margin profile is higher.”
Software and services represented $538 million in fiscal 2026, according to Staiger. He said the company’s management software, including SuperCloud Composer, Data Center Manager and Orchestration Manager, is sold as part of its overall system solution. The company has integrated its software with VMware Cloud Foundation, or VCF, for VMware AI Factory deployments, he added.
Enterprise, sovereign and CPU opportunities
Beyond neocloud customers, Staiger said Supermicro is pursuing enterprise and sovereign AI deployments. He said the company has more than several sovereign deployments globally and is seeing evidence of enterprises and sovereign customers putting AI factories “on the floor.”
He characterized the sovereign market as a potentially significant portion of the broader AI infrastructure opportunity, though he did not provide a company-specific revenue forecast for that segment.
Staiger also said traditional CPU-based servers remain an important opportunity. He cited an aging installed base of general-compute and enterprise servers that may need to be upgraded or consolidated, as well as potential demand for CPUs supporting AI agents and other emerging workloads. The company expects to pair those offerings with its DCBBS strategy.
On manufacturing, Staiger said Supermicro has discussed capacity of 6,000 racks per month, split evenly between liquid-cooled and air-cooled racks. He said the company is adding square footage and new buildings in Johor, along with clean-room and manufacturing capabilities, though he did not disclose additional capacity figures.
The company is also expanding its go-to-market and service capabilities as it serves more enterprise customers. Staiger said Supermicro is working to improve working-capital intensity through customer terms and delivery timing, with a longer-term goal of becoming self-funded and eventually returning capital to shareholders.
“There’s a lot to juggle, customers and capital conversions, and innovation,” Staiger said. “But I think we are doing a really effective job at this point in time, and I think we are in good shape for FY 2027.”
About Super Micro Computer (NASDAQ:SMCI)
Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.
The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.
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