Super Micro Computer, Inc. (SMCI) reported a 29.3% year-to-date stock increase as of fiscal 2026, significantly outperforming the Zacks Computer and Technology sector, which grew 16%, and the Computer – Storage Devices industry, which saw a remarkable 221.3% rise. The company’s fiscal 2026 revenues nearly doubled to $39.1 billion, driven by over $60 billion in new orders in Q4, resulting in record backlog levels moving into fiscal 2027.
SMCI anticipates fiscal 2027 sales between $65 billion and $72 billion, with Q1 sales predicted to be between $14.5 billion and $15.5 billion. AI solutions currently represent about 60% of revenue, but this is expected to exceed 80% based on backlog. The company’s partnerships with NVIDIA, Intel, and AMD bolster its positioning in AI infrastructure, reflecting its strategy to deliver comprehensive, rack-scale solutions.
Additionally, SMCI’s non-GAAP gross margin improved from 10.1% in Q3 to 17.6% in Q4 of fiscal 2026, with a current forward price-to-sales ratio of 0.34, compared to the industry’s 3.05, indicating significant undervaluation. Non-GAAP adjusted earnings for Q1 of fiscal 2027 are projected between $1.01 and $1.10 per share, marking a 200% year-over-year increase based on consensus estimates.
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