Super Micro Computer (MS51) AI Stock Analysis

Company Guidance

For the second quarter of fiscal 2027, Super Micro expects net sales of $19.5 billion to $21.5 billion, gross margin of 12% to 12.5%, GAAP diluted earnings per share of $1.59 to $1.83, non-GAAP diluted earnings per share of $1.66 to $1.90, GAAP operating expenses of approximately $455 million, including approximately $102 million of stock-based compensation, other income and expense of approximately $58 million net expense, GAAP and non-GAAP tax rates of approximately 21%, GAAP diluted share count of approximately 753 million, non-GAAP diluted share count of approximately 769 million, preferred dividends of approximately $75 million, and capital expenditure of $70 million to $80 million; the cash conversion cycle is expected to be within the band of plus or minus 10% versus Q1. For the full fiscal year, the company raised its revenue outlook to $72 billion to $82 billion from $65 billion to $72 billion and expects full year gross margin of 11.8% to 12.2%; AI-related solutions are expected to represent approximately 70% to 80% of revenue for fiscal 2027 and move toward the upper end of the 70% to 80% range, while the outlook does not assume the approximately $2.3 billion catch-up repeats, does assume continued sequential growth in underlying demand, and expects the second half gross margin below the first half.