Super Micro (SMCI) Stock: $33.65 After $19.9 Billion of Q1…
Updated 4 November 2026, before the US pre-market. Super Micro Computer ended Tuesday’s extended session at $33.65, up 7.2 percent from the regular close of $31.39, after reporting fiscal first-quarter revenue of $19.9 billion and raising its full-year guide to $72-$82 billion from $65-$72 billion (Yahoo Finance, Supermicro). The stock had reached $34.96 after hours. Verdict: the growth numbers were far ahead of what the company itself guided, but a 12.7 percent gross margin and $434 million of cash used in operations keep this a volume story, not a profit story. Reference levels: $30.44 below, $38 above.
Key facts
- Price: $33.65 at the end of after-hours trading on Tuesday 3 November, up 7.2 percent; after-hours high $34.96 (Yahoo Finance). Regular close $31.39, up 3.12 percent, after a 7.62 percent drop to $30.44 on Monday (StockAnalysis).
- Revenue: $19.9 billion for the quarter to 30 September, up from $11.1 billion in the June quarter and $5.0 billion a year earlier (Supermicro).
- Against its own numbers: on 20 October Supermicro had pre-announced revenue of $18.5-$19.5 billion; it beat the top of that range.
- Earnings: GAAP net income of $1.594 billion, against $168 million a year earlier; non-GAAP EPS of $1.81, about $0.58 above estimates (Supermicro, TipRanks).
- Margin: GAAP gross margin of 12.7 percent, down from 17.5 percent in the June quarter but up from 9.3 percent a year earlier (Supermicro).
- Guidance: December-quarter revenue of $19.5-$21.5 billion and non-GAAP EPS of $1.66-$1.90; fiscal 2027 revenue of $72-$82 billion, up from $65-$72 billion (Supermicro).
- Cash: operations used $434 million; cash of $6.9 billion against $8.6 billion of bank debt and convertible notes (Supermicro).
What changed since 28 October
Our 28 October Super Micro page had the stock at $35.09 after a 7 percent jump on reports of Argentum AI financing talks, with $30 as the lower reference level before the results. The stock fell in the days after, through Intel’s PC warning and the wider chip selloff: $32.95 on 30 October and $30.44 on Monday, a few cents from that level (StockAnalysis).
The report changed the picture. Revenue nearly quadrupled year on year. The fiscal 2027 range was lifted by $7-$10 billion. The December-quarter guide of $19.5-$21.5 billion came in above an analyst estimate of about $17.4 billion cited in post-results coverage (GuruFocus, Benzinga). Supermicro’s CFO said on the call that a single AI order can now exceed the revenue of a year-ago quarter (Benzinga).
The margin and cash question
This is where the bears stay. AI systems made up about 71 percent of first-quarter revenue, and the company expects them to be 70-80 percent of fiscal 2027 revenue. Large AI deployments carry lower margins than enterprise and channel business, and the company guided full-year gross margin to 11.8-12.2 percent, which implies a weaker second half than the 12.7 percent just reported (earnings call coverage via Gloom and Benzinga). Management put the sequential drop from 17.5 percent down to which customers took delivery in which quarter.
Cash is the other issue. Net income was $1.59 billion, but operations used $434 million, because building servers at this scale ties up money in inventory and receivables. Management said customer prepayments funded most of the working capital (Supermicro). Bank debt and convertible notes of $8.6 billion now exceed the $6.9 billion cash pile.
The same tension showed up at AMD, which reported the same night: data center revenue nearly doubled while the gross margin guide came in a touch light. See our AMD results page. Dell, the other big AI server name, is covered on our Tuesday Dell page.
What analysts think
Wall Street is still split. TipRanks shows 3 Buy, 10 Hold and 2 Sell ratings and an average target of $40.58, with a high of $57 and a low of $15. Needham kept a Buy and a $46 target, Bernstein kept a Hold at $42, and BofA Securities raised its target to $38 from $33 while keeping a Sell (TipRanks). Even the most cautious major broker’s new target is above the after-hours price.
Super Micro this week: bull, base and bear
| Scenario | SMCI | What has to happen | Anchor |
|---|---|---|---|
| Bear | $30.44 | The election selloff in tech deepens and the market focuses on the margin guide and the cash burn instead of revenue. | Monday’s close of $30.44; about 9.5 percent below $33.65. |
| Base | $33-$36 | The beat holds and the stock trades around the after-hours high and its late-October levels. | After-hours high of $34.96 and the 28 October close of $35.81 (StockAnalysis). |
| Bull | $38 | Tech recovers, more brokers raise targets on the $72-$82 billion guide, and the stock reaches BofA’s new target. | BofA’s $38 target; about 12.9 percent above $33.65. Bernstein ($42) and Needham ($46) sit higher. |
The bear case sits below the latest price. These are reference levels measured from the verified after-hours price, not forecasts. US pre-market trading had not opened at the time of writing.
What to watch
- The pre-market from 4 am ET: Nasdaq-100 futures fell as much as about 2 percent overnight on the midterm results before recovering part of it (Yahoo Finance).
- Target changes from the 10 brokers rating the stock Hold.
- Working capital: whether prepayments keep funding the build-out, or the company needs more debt.
- Nvidia’s results on 17 November, the main supplier read for AI servers.
Quick take: Super Micro reported $19.9 billion of revenue, above its own pre-announced range, and raised fiscal 2027 guidance to $72-$82 billion. Non-GAAP EPS of $1.81 beat by about $0.58. The stock ended after-hours trading at $33.65, up 7.2 percent. Gross margin of 12.7 percent and $434 million of cash used in operations are the catch. Expect $33-$36 if the market settles; $30.44 needs the election selloff to deepen, $38 needs brokers to follow BofA higher.
FAQ
What is SMCI stock trading at after earnings?
Super Micro ended Tuesday’s after-hours session at $33.65, up 7.2 percent from the $31.39 close, after reaching $34.96 (Yahoo Finance).
Did Super Micro beat earnings?
Yes. Revenue of $19.9 billion beat the company’s own pre-announced range of $18.5-$19.5 billion, and non-GAAP EPS of $1.81 beat estimates by about $0.58 (Supermicro, TipRanks).
What is Super Micro’s fiscal 2027 guidance?
Revenue of $72-$82 billion, up from $65-$72 billion. For the December quarter it guides $19.5-$21.5 billion (Supermicro).
Why is Super Micro’s gross margin so low?
Large AI system deals carry thinner margins than enterprise business, and AI made up about 71 percent of revenue. The company guides full-year gross margin to 11.8-12.2 percent.
Is Super Micro burning cash?
Operations used $434 million in the quarter despite $1.59 billion of net income, because of working capital tied to deliveries. Cash was $6.9 billion against $8.6 billion of debt and convertible notes (Supermicro).
What is the analyst price target for SMCI?
The TipRanks average is $40.58, with a range of $15 to $57. Needham has $46, Bernstein $42 and BofA $38.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Stocks are volatile. Do your own research and consult a licensed financial adviser before making investment decisions.
