Super Micro Computer (NASDAQ:SMCI) said demand for AI infrastructure remains strong as the company works to expand its customer base, increase the value of its systems offerings and improve cash conversion through more favorable customer contracts.
Speaking at Citi’s Technology Conference, Michael Staiger, Super Micro’s senior vice president of corporate development, said the company’s fiscal 2026 growth rate was 78% and noted that its quarterly revenue guidance midpoint now stands at $15 billion. He contrasted that figure with a $14.9 billion annual revenue level the company discussed several years earlier.
Demand diversification and AI adoption
Super Micro said its customer diversification has broadened beyond the largest customers that initially drove major AI infrastructure deployments. Staiger pointed to enterprises, neocloud providers and sovereign customers as groups building infrastructure for AI workloads.
While the company did not provide a revenue breakdown among those categories, Staiger said enterprise AI adoption is gaining traction. He cited recent activity involving VMware’s VCF for AI Factory stack and Super Micro’s engagement with Cisco as indications that enterprise adoption is expanding.
“We’re early stages, but it’s spreading out,” Staiger said of enterprise AI adoption.
The company expects some customer concentration to remain, particularly among large customers, but said it has historically expanded alongside customers by broadening the systems and capabilities it provides. Staiger also said hyperscalers are deploying workloads within Super Micro’s broader customer base.
Integrated systems, margins and services
A central component of Super Micro’s strategy is its Data Center Building Block Solutions, or DCBBS, approach. Staiger said the model is designed to provide customers with validated, integrated systems that incorporate computing, networking, storage, power and cooling components.
He said the strategy is particularly useful for enterprises, neoclouds and sovereign customers that may lack the engineering resources of hyperscalers to deploy complex AI infrastructure. By delivering pre-validated systems, Super Micro aims to help customers avoid equipment sitting idle because of integration, networking, storage, power or cooling issues.
Staiger said the company is investing in go-to-market capabilities and services, including its “L12” validation services. He said the investments are included in the company’s guidance and operating model, while Super Micro remains focused on operating-expense efficiency.
On gross margin, Staiger said Super Micro provides guidance one quarter at a time because the mix of business can vary. However, he said the company’s longer-term internal objective is to reach double-digit gross margins and raise that level over time.
The company recently reported a quarter with gross margin of “17 and change,” according to Staiger. He said adding components such as power and cooling, as well as providing more integrated solutions, can create more value for customers and support higher margins.
Working capital, inventory and funding
Staiger acknowledged that revenue can be uneven from quarter to quarter when customer sites or supplier operations face challenges. But he said Super Micro has historically captured delayed revenue downstream and expects diversification and greater planning visibility to improve execution.
The company reported $12.9 billion of inventory and inventory days of roughly 119, according to the discussion. Staiger said concerns about product obsolescence are overstated, describing prior inventory charges as minor and noting a recent reversal. He said demand has supported the ability to place systems across different tiers of the market.
Super Micro also discussed efforts to improve operating cash flow and reduce capital intensity as it grows. Staiger said its $60 billion order book, a more diversified customer base and better contract structures should support an improved cash conversion cycle.
He said some enterprise-grade customers may pay half upfront and the balance upon delivery, contrasting with terms associated with some startup customers in earlier periods that could be less favorable. The company’s goal is to become self-funded over time, he said.
Asked whether the company felt adequately funded for its stated $65 billion to $72 billion growth outlook, Staiger said Super Micro was comfortable with what it sees currently.
Compliance, partnerships and market opportunity
Staiger said Super Micro has expanded its legal and export-control staffing, appointed a chief compliance officer and strengthened related programs following investigations discussed during the session. He said the board cleared management and that the company is committed to preventing export-control issues.
On technology partnerships, Staiger called NVIDIA a strong partner but said customer demand can shift among platforms. He said Super Micro intends to grow with NVIDIA as well as AMD, Intel and Arm, emphasizing its ability to provide AI infrastructure across a range of architectures.
Staiger referenced estimates from some of Super Micro’s partners that put the total market opportunity at $2 trillion to $4 trillion. He said that if Super Micro maintained a 10% market share in a $2 trillion market, that would equate to $200 billion of revenue. He added that the company’s focus on performance-oriented, value-oriented and integrated solution offerings could broaden its addressable opportunity.
“We are positioned to be able to deliver AI infrastructure of any nature, of any kind to the customer base, and in a total package, in a total factory,” Staiger said.
About Super Micro Computer (NASDAQ:SMCI)
Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.
Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.
