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Can SMCI's Record Backlog Sustain Revenue Momentum in FY27?
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Key Takeaways
Super Micro Computer's fiscal 2026 revenues jumped 78% to $39.1 billion as AI demand drove.
SMCI received more than $60 billion in fourth-quarter orders, pushing its backlog to record levels.
Super Micro Computer expects fiscal 2027 revenues of $65 billion to $72 billion on stronger AI demand.
Super Micro Computer (SMCI - Free Report) is one of the few AI infrastructure companies that enable AI data centers, AI Fabs, hyperscalers and enterprises for rapid adoption of new processor and accelerator platforms. Super Micro Computer is shipping volume systems based on NVIDIA’s GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro platforms while preparing Vera Rubin systems. With AMD, it launched the Helios product line and MI450 Total Solution, alongside MI350 and MI355X systems.
AI and IT infrastructure business remains the primary driver of SMCI’s growth trajectory. SMCI’s fiscal 2026 revenues increased 78% year over year to $39.1 billion, while the company received more than $60 billion in new orders during the fourth quarter, taking its backlog to record levels entering fiscal 2027. SMCI expects the stronger order book to support continued expansion as customers accelerate AI infrastructure deployments.
SMCI’s AI solutions represented approximately 60% of fourth-quarter fiscal 2026 revenues. Enterprise and channel revenues also strengthened significantly, reaching $5.6 billion or 50% of quarterly sales, as customers upgraded computing, storage and networking infrastructure. SMCI expects AI-related solutions to account for more than 80% of revenues based on the current backlog.
To support demand, Supermicro is expanding manufacturing capacity across the United States, Taiwan, Malaysia and the Netherlands. Its manufacturing capability is expected to exceed 6,000 racks per month, including more than 3,000 direct-liquid-cooled racks, with support for high-density 250-kilowatt platforms. For fiscal 2027, management expects revenues between $65 billion and $72 billion, while first-quarter revenues are projected to be in the range of $14.5-$15.5 billion.
How Competitors Fare Against SMCI
SMCI is at a crossroads with major players like Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) . Hewlett Packard Enterprise is providing enterprises with an integrated AI infrastructure portfolio spanning hardware, software and cloud management to scale generative AI, agentic AI and high-performance computing workloads.
HPE combines compute, storage, networking and the GreenLake platform with NVIDIA's GPUs, CPUs, networking technologies and AI Enterprise software. The integrated offering allows enterprises to build and manage AI environments through a unified platform.
Dell Technologies, meanwhile, is pursuing a broader ecosystem strategy through its Dell AI Factory. Rather than focusing solely on servers, Dell is expanding across compute, storage, networking, automation and software. Dell recently introduced PowerEdge R9822 and M9822 servers.
SMCI’s Price Performance, Valuation and Estimates
Shares of Super Micro Computer have gained 41.5% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 248.2%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI is trading at a discount at a forward 12 Month P/S multiple of 0.37X compared with the industry’s P/S multiple of 3.22X.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 22% and 19%, respectively. Estimates for fiscal 2026 and 2027 earnings have been revised upward in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can SMCI's Record Backlog Sustain Revenue Momentum in FY27?
Key Takeaways
Super Micro Computer (SMCI - Free Report) is one of the few AI infrastructure companies that enable AI data centers, AI Fabs, hyperscalers and enterprises for rapid adoption of new processor and accelerator platforms. Super Micro Computer is shipping volume systems based on NVIDIA’s GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro platforms while preparing Vera Rubin systems. With AMD, it launched the Helios product line and MI450 Total Solution, alongside MI350 and MI355X systems.
AI and IT infrastructure business remains the primary driver of SMCI’s growth trajectory. SMCI’s fiscal 2026 revenues increased 78% year over year to $39.1 billion, while the company received more than $60 billion in new orders during the fourth quarter, taking its backlog to record levels entering fiscal 2027. SMCI expects the stronger order book to support continued expansion as customers accelerate AI infrastructure deployments.
SMCI’s AI solutions represented approximately 60% of fourth-quarter fiscal 2026 revenues. Enterprise and channel revenues also strengthened significantly, reaching $5.6 billion or 50% of quarterly sales, as customers upgraded computing, storage and networking infrastructure. SMCI expects AI-related solutions to account for more than 80% of revenues based on the current backlog.
To support demand, Supermicro is expanding manufacturing capacity across the United States, Taiwan, Malaysia and the Netherlands. Its manufacturing capability is expected to exceed 6,000 racks per month, including more than 3,000 direct-liquid-cooled racks, with support for high-density 250-kilowatt platforms. For fiscal 2027, management expects revenues between $65 billion and $72 billion, while first-quarter revenues are projected to be in the range of $14.5-$15.5 billion.
How Competitors Fare Against SMCI
SMCI is at a crossroads with major players like Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) . Hewlett Packard Enterprise is providing enterprises with an integrated AI infrastructure portfolio spanning hardware, software and cloud management to scale generative AI, agentic AI and high-performance computing workloads.
HPE combines compute, storage, networking and the GreenLake platform with NVIDIA's GPUs, CPUs, networking technologies and AI Enterprise software. The integrated offering allows enterprises to build and manage AI environments through a unified platform.
Dell Technologies, meanwhile, is pursuing a broader ecosystem strategy through its Dell AI Factory. Rather than focusing solely on servers, Dell is expanding across compute, storage, networking, automation and software. Dell recently introduced PowerEdge R9822 and M9822 servers.
SMCI’s Price Performance, Valuation and Estimates
Shares of Super Micro Computer have gained 41.5% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 248.2%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI is trading at a discount at a forward 12 Month P/S multiple of 0.37X compared with the industry’s P/S multiple of 3.22X.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 22% and 19%, respectively. Estimates for fiscal 2026 and 2027 earnings have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Super Micro Computer currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.