SMCI's Backlogs are Growing at a Record Pace: What's Ahead?

Super Micro Computer's record backlog and AI demand set the stage for growth, with management expecting AI solutions to exceed 80% of revenues.

Subham Roy

3 min read

Super Micro Computer’s SMCI exposure to AI infrastructure remains a central growth driver. Fiscal 2026 revenues rose 78% to $39.1 billion, and management said more than $60 billion of new orders were received in the fourth quarter, leaving a record backlog heading into fiscal 2027.

The AI solutions represented about 60% of SMCI’s fourth-quarter fiscal 2026 revenues because several large projects shifted timing, but management expects AI-related solutions to exceed 80% of revenues going forward based on backlog. The company guided for fiscal 2027 sales of $65 billion to $72 billion and first-quarter sales of $14.5 billion to $15.5 billion.

Demand for AI training, inference, NeoCloud and sovereign deployments remains the primary driver of Super Micro Computer’s longer-term expansion. Super Micro Computer continues to emphasize early availability of new AI systems integrated with NVIDIA, Advanced Micro Devices and Intel chips as a competitive advantage.

In fourth-quarter fiscal 2026, the company was shipping volume products across NVIDIA’s GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro lines. It is also preparing systems based on NVIDIA Vera Rubin and Vera CPU platforms. With AMD, SMCI launched the Helios product line and MI450 Total Solution while continuing to support MI350 and MI355X systems.

Intel Xeon 6+ platforms are shipping in volume, and the company is developing systems for Arm-based AGI processors. Broad support across multiple processor ecosystems gives customers more deployment choices and can help the company participate in successive AI platform transitions.

How Competitors Fare Against SMCI

Big players like Dell Technologies DELL and Hewlett Packard Enterprise HPE are competing with SMCI in this space.

Dell Technologies is a major supplier of servers and storage systems, with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts. Hewlett Packard Enterprise is also expanding aggressively into AI and high-performance computing.

HPE’s GreenLake platform provides customers with flexible, cloud-like consumption models, which can be attractive to enterprises. Hewlett Packard Enterprise’s focus on hybrid cloud and AI workloads positions it as a direct competitor in areas where SMCI is seeking growth through its DCBBS strategy.

SMCI’s Price Performance, Valuation and Estimates

Shares of Super Micro Computer have gained 20.1% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 211.5%.

SMCI YTD Performance Chart

Image Source: Zacks Investment Research

From a valuation standpoint, SMCI is trading at a discount at a forward 12 Month P/S multiple of 0.32X compared with industry’s P/S multiple of 2.82X.

SMCI Forward 12-Month (P/S) Valuation Chart

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 22% and 18.7%, respectively. Estimates for fiscal 2026 and 2027 earnings have been revised upward in the past 30 days.

Image Source: Zacks Investment Research

Super Micro Computer currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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