Super Micro Computer's stock surged roughly 25% last week after the server maker issued fiscal 2027 guidance for $65 billion to $72 billion in revenue—significantly above Wall Street's $52.5 billion estimate—signaling strong sustained demand for AI infrastructure as data-center spending grows.
The company also beat fourth-quarter earnings expectations and logged a record backlog, with new orders exceeding $60 billion.
What happened
Super Micro Computer shares jumped about 25% last week after the company forecast fiscal 2027 revenue of $65 billion to $72 billion, well above Wall Street's estimate of about $52.5 billion. Fourth-quarter adjusted earnings reached $1.70 per share, beating estimates of about 92 cents, and new orders exceeded $60 billion.
Why it matters
The forecast signals that demand for AI infrastructure could remain elevated as data-center spending expands. Super Micro's strong backlog and earnings beat suggest the company is well-positioned to capitalize on ongoing AI server demand, which is a key driver of data-center capital spending.
What to watch
Super Micro projected fiscal first-quarter revenue of $14.5 billion to $15.5 billion (versus consensus near $11.8 billion) and adjusted earnings of $1.01 to $1.10 per share (ahead of roughly 72-cent consensus). Bernstein raised its price target to $42 from $37 while maintaining a Market Perform rating.
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Super Micro's rally reflects investor confidence in the durability of AI server demand as data-center operators continue to expand their AI infrastructure. The company's fiscal 2027 guidance of $65 billion to $72 billion exceeds Wall Street consensus by roughly 24–37%, a substantial upside that signals management expects demand to remain strong through the coming fiscal year. The company's fourth-quarter results—with adjusted earnings of $1.70 per share and revenue of $11.12 billion—exceeded both consensus expectations and demonstrate operational execution to match the bullish outlook.
The backlog reaching a record level and new orders exceeding $60 billion provide a tangible revenue runway that supports management's confidence in the forward guidance. These metrics suggest that Super Micro's growth is not speculative but backed by actual customer commitments. Bernstein's price-target raise from $37 to $42 (while maintaining a Market Perform rating) indicates that Wall Street analysts are recognizing the strength of the company's positioning, though the cautious rating suggests they may view valuation as fairly reflected in the stock's advance.
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