Highlights

  • Supermicro shows 93.98% one-year basic EPS growth, P/E of 10.12 and PEG of 0.11.
  • Preliminary first quarter fiscal 2027 revenues are estimated at $18.5 billion to $19.5 billion.
  • Preliminary gross margins are estimated at 12.0% to 12.5%, against guidance of 10.4% to 10.8%.
  • Management targets fiscal 2027 net sales of $65 billion to $72 billion.

Super Micro Computer (NASDAQ:SMCI) shares were trading at USD 34.84 on October 28, 2026, down 0.71%, alongside one-year basic EPS growth of 93.98%, a trailing twelve-month P/E of 10.12 and an expected-basis PEG of 0.11, the three figures behind its place among undervalued growth stocks. On the company's side, the provider of AI, enterprise, storage and 5G/edge IT systems discussed its fiscal 2026 fourth quarter and fiscal 2027 outlook on a business update call in August, then issued a preliminary update on October 20 estimating first quarter fiscal 2027 revenues of $18.5 billion to $19.5 billion.

Based in San Jose, California, and incorporated in Delaware, Super Micro Computer describes itself as an AI, Enterprise, Storage, and 5G/Edge IT Total Solution Provider featuring Data Center Building Block Solutions. It states that it offers server, AI, storage, IoT and switch systems, software and support services, backed by in-house design and manufacturing in the US, Taiwan and the Netherlands. Its fiscal year ended June 30, 2026, and its common stock trades on the Nasdaq Global Select Market.

Growth: Preliminary First Quarter Fiscal 2027 Revenue and Gross Margin

In an 8-K furnished on October 20, 2026, Super Micro Computer provided a preliminary business update for the first quarter of fiscal 2027, which ended September 30, 2026. It estimated revenues of $18.5 billion to $19.5 billion, against guidance of $14.5 billion to $15.5 billion, primarily due to increased demand for AI platforms. It estimated gross margins of 12.0% to 12.5%, against guidance of 10.4% to 10.8%, primarily due to customer and product mix. The company called the figures unaudited and subject to revision during its financial closing procedures.

On the August call covering the fiscal 2026 fourth quarter, management said revenue landed near the low end of its guidance range on delays in customer readiness, including power, cooling and networking. Chief Executive Officer Charles Liang described this as a timing matter, and the company said it expects to recognize that revenue in subsequent quarters.

Valuation: P/E of 10.12, PEG of 0.11 and Per-Share Guidance

The P/E ratio of 10.12 is measured on trailing twelve-month earnings, and the PEG ratio of 0.11 on expected growth.

For the first quarter of fiscal 2027, management guided to GAAP diluted net income per share of $0.89 to $0.98 and non-GAAP diluted net income per share of $1.01 to $1.10. The company said the issuance of mandatory convertible preferred shares means earnings per share are now computed under the two-class method.

Capital and Balance Sheet: Financing, Capacity and Capital Expenditures

Management said the company completed public offerings of common stock and mandatory convertible preferred shares in the fiscal 2026 fourth quarter, with proceeds used primarily for the working capital needed for new orders. Liang said the company has no current plans to use the at-the-market program it initiated a few months earlier. Management guided first quarter fiscal 2027 capital expenditures to $50 million to $60 million.

Liang said manufacturing capacity is on track to exceed 6,000 racks per month, including more than 3,000 direct liquid-cooled racks per month.

Disclosed Risks and Outlook for Fiscal 2027

The October 20 release lists several risks. Quarterly operating results may fluctuate. As the company targets larger customers, its customer base may become more concentrated, its margins may be lower and its sales may become less predictable. Average sales prices for its server solutions could decline if customers do not continue to purchase its latest generation products, and adverse economic conditions, including increased tariffs, could affect the business. The company said its independent registered public accounting firm has not audited or reviewed the preliminary figures and that actual results may differ materially.

Materials for the August call state that the Board is conducting an independent review of certain transactions in connection with export-control issues, and management said it expects to provide an update shortly. Chief Financial Officer David Weigand said the rest of the industry expects tariffs may go back up.

On outlook, management guided in August to first quarter fiscal 2027 net sales of $14.5 billion to $15.5 billion, and the October 20 release put the preliminary estimates above that range. For fiscal 2027, management targets net sales of $65 billion to $72 billion. The first quarter earnings call is scheduled for November 3, 2026, at 5:00 p.m. ET.