By Daniel Sparks
Publication Date: 2026-10-22 07:12:00
Super Micro Computer (SMCI +9.55%) had a far bigger quarter than it expected. On Tuesday, the server builder said revenue for the first quarter of its fiscal 2027 (the period ended Sept. 30) should fall between $18.5 billion and $19.5 billion. In August, management had called for $14.5 billion to $15.5 billion.
At the midpoint of each range, the company’s estimate was around $4 billion over what it expected. Super Micro said the gap was “primarily due to increased demand for AI platforms,” and its shares popped about 9% on Wednesday as I write.
For many investors, though, the more important stock here is Nvidia (NVDA +2.54%). Trading near $220 as I write this, the artificial intelligence (AI) chip leader is about 8% under $239.24, its record close, set on Oct. 6.
But does a server maker’s surprise quarter make Nvidia stock a buy? I think it adds to a case that was already strong.
Image source: Getty Images.
Super Micro builds on Nvidia
Super Micro builds the servers and full racks that AI data centers run on. Its annual report for fiscal 2026 (the year ended June 30) puts Nvidia’s Blackwell and Blackwell Ultra platforms first in its AI lineup.
It also says it expanded rack-scale manufacturing for Vera Rubin, Nvidia’s next platform. And last November, Super Micro said its order book had over $13 billion in Blackwell Ultra orders.
Sure, Super Micro also sells systems built on rival chips, and it doesn’t break out how much of its revenue runs on Nvidia hardware. Yet Nvidia’s…
