Surge in Revenue from AI Servers.. U.S. Server Stocks Face Margin Pressure

Super Micro Computer, Inc. (SMCI) today reported preliminary results for the second quarter of fiscal 2026, ended December 31, 2025. Revenue nearly doubled year-over-year to $12.7 billion (approximately KRW 17 trillion), while GAAP gross margin fell sharply to 6.3%, down from 11.8% a year earlier.

Net income rose to about $400 million (roughly KRW 500 billion). However, operating cash flow recorded a net outflow of around $24 million, driven by an increase in working capital.

Citing robust AI server and storage demand, the company guided for at least $12.3 billion in third-quarter revenue and at least $40 billion for the full fiscal year (about KRW 52 trillion). The board also approved regular RSU awards and vesting for independent directors and the Chief Accounting Officer.

The Q2 results beat consensus on both revenue and adjusted EPS, reaffirming strong AI-related server demand. Nevertheless, analysts caution that margins were pressured by tariffs and memory-component supply constraints, and they will be watching profitability trends in coming quarters.

Headquartered in San Jose, Silicon Valley, Supermicro specializes in AI, cloud and storage servers. It is expanding capacity and public-sector reach through a third U.S. campus and the formation of a dedicated federal entity. As generative AI adoption accelerates and investments in high-performance GPU server infrastructure grow, competition is intensifying across the global server industry in next-generation data-center technologies such as high-density designs and immersion cooling.