Super Micro Computer reports record backlog and surging AI-driven profits

Super Micro Computer Inc. reported strong fourth-quarter results driven by the demand for artificial intelligence infrastructure. While quarterly revenue of $11.1 billion slightly missed analyst expectations of $11.6 billion, the company significantly exceeded earnings estimates with an adjusted profit of $1.70 per share, compared to the $0.92 predicted by Wall Street.

Profitability saw a major boost, with gross margins rising to 17.5% from 9.9% in the previous quarter. Net income reached $1.18 billion, a six-fold increase over the same period last year. CEO Charles Liang attributed the improved margins to a richer mix of enterprise customers and the adoption of optimized data center architectures.

The company also reported a record order backlog, having booked more than $60 billion in new orders over the past year. Looking ahead, Supermicro provided optimistic guidance, projecting full fiscal 2027 sales between $65 billion and $72 billion. Following the announcement, the company's stock saw gains in after-hours trading.