Dear Super Micro Stock Fans, Here's What August's Rally Means for SMCI

Ruchi Gupta

Thu, September 10, 2026 at 6:40 PM GMT+3 3 min read

SMCI +7.28%

Supermicro headquarters in San Jose, By JHVEPhoto

Super Micro Computer (SMCI) is a San Jose, California-based provider of high-performance server and storage solutions built on a modular, open-standard architecture. Under founder and CEO Charles Liang, Supermicro designs liquid- and air-cooled AI servers, rack-scale computing platforms, and total Data Center Building Block Solutions (DCBBS) that combine compute, storage, networking, and lifecycle services for AI infrastructure buildouts.

The company has rapidly transformed from a traditional server manufacturer into a comprehensive AI data center solutions provider, serving hyperscalers, enterprises, and cloud service providers worldwide. With manufacturing facilities across the U.S., Taiwan, Malaysia, and the Netherlands, Supermicro remains a critical enabler of the global AI infrastructure boom.

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SMCI Posted Mixed Q4 Results

Supermicro's fiscal fourth-quarter 2026 results showed revenue of $11.1 billion, up 93% year-over-year (YoY) but narrowly missing Wall Street's roughly $11.3 billion estimate. Non-GAAP earnings per share came in at $1.70, obliterating the $0.92 analyst consensus by more than 84%, marking one of Supermicro's largest earnings surprises as an improved product mix and lower inventory reserves drove profitability higher.

For the full fiscal year 2026, Supermicro posted record revenue of $39.1 billion, up 78% from $22.0 billion in fiscal 2025, with non-GAAP EPS climbing 76% to $3.63. Non-GAAP gross margin expanded to 17.6% in the fourth quarter, up 750 basis points sequentially, while the company received more than $60 billion in new orders during the quarter, pushing its backlog to record levels heading into fiscal 2027. Nine customers each generated over $1 billion in annual revenue, up from four a year earlier.

Management guided fiscal first-quarter 2027 revenue to $14.5 billion to $15.5 billion, with non-GAAP EPS of $1.01 to $1.10, and reiterated full-year fiscal 2027 revenue guidance of $65 billion to $72 billion. CEO Charles Liang said demand for Supermicro's AI infrastructure solutions has never been stronger, describing the company as transforming into a "one-stop shop" for building AI factories, with management expecting more than 80% of future revenue to be AI-related.

August's Top Performer

Super Micro Computer emerged as one of August 2026's standout tech performers, with shares surging around 27% during the month as investors rewarded the company's blowout fiscal fourth-quarter results and record order backlog. The rally accelerated after Supermicro reported non-GAAP earnings of $1.70 per share on Aug. 11, far exceeding analyst expectations, alongside the disclosure of more than $60 billion in new AI infrastructure orders that pushed its backlog to record levels heading into fiscal 2027.

Shares got an additional boost on Aug. 25, jumping 9.17% to close at $38.40 after Cisco (CSCO) expanded its Secure AI Factory partnership with Nvidia (NVDA) to include Supermicro's server hardware. The combination of raised gross-margin guidance, a diversifying customer base with nine billion-dollar-plus accounts, and strengthening AI demand helped SMCI stock significantly outperform the broader technology sector, cementing its place among August's top AI infrastructure gainers alongside AMD (AMD) and Micron (MU).

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Should You Buy SMCI Stock?

Super Micro Computer's blistering August rally, fueled by its record order backlog and Cisco partnership expansion, highlights genuine AI-driven momentum, but Wall Street remains split on whether the run has room to continue. SMCI stock carries a consensus "Hold" rating from 20 analysts, with just four "Strong Buy" and two "Moderate Buy" calls outweighed by 11 "Hold" and three "Sell" ratings combined. The average price target of $41.38 implies roughly 8% upside from current levels, suggesting the stock's recent surge may have already priced in much of its near-term AI infrastructure upside.