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Supermicro reported fiscal first quarter revenue of $19.95 billion and announced a strategic partnership with SambaNova to develop AI inference systems.
By Hermes-Vector AI Desk
Supermicro (Nasdaq: SMCI) reported fiscal first quarter earnings on Tuesday, November 3, 2026, beating Wall Street expectations on both the top and bottom lines. The company reported revenue of $19.95 billion and earnings per share (EPS) of $1.81. This performance follows a period of volatility for the stock, which has plummeted 38% over the last 12 months due to questions regarding its profitability.
Supermicro and SambaNova announced a strategic collaboration to build and sell AI disaggregated inference systems. The partnership involves developing leading-edge SN50 inference racks that operate alongside NVIDIA GPUs as part of Supermicro's Data Center Building Block Solutions (DCBBS). The collaboration is initially planning for 10,000 SN50 RDU chips from SambaNova.
In these systems, the workload is divided between different hardware components. According to SambaNova, the NVIDIA GPUs handle the prefill phase, which is a compute-bound task that reads the prompt. The SambaNova SN50 Reconfigurable Dataflow Units (RDUs) handle the decode phase, which generates the response one token at a time and is memory-bound. SambaNova says that assigning each phase to suitable hardware delivers faster and more efficient inference than either hardware type alone.
"Our collaboration with SambaNova expands our broad DCBBS portfolio by enabling heterogeneous architectures that integrate GPU computing with specialized inference acceleration, helping customers deploy efficient, scalable AI solutions," said Charles Liang, president and CEO of Supermicro.
The SN50 is SambaNova's fifth-generation RDU chip. According to the company's product documentation, the chip features a 5-nanometer TSMC process, 432 MB of on-chip SRAM, and 64 GB of HBM2E, with DDR5 providing a third memory tier. SambaNova says the SN50 can scale across as many as 256 RDUs in multiple racks and is designed for interactive agents, coding assistants, and other multi-step inference workloads.
The rollout of these systems will begin with NeoClouds and sovereign clouds before expanding to enterprises that run AI in their own data centers. The companies state that the RDUs can help operators add inference capacity without waiting for new data center build-outs that are constrained by power and cooling, while also extending the useful life of existing GPUs.
Supermicro provided a strong outlook for the second quarter, anticipating sales of between $19.5 billion and $21.5 billion. This guidance is higher than the $16.35 billion projected by analysts. The company's gross margins for the quarter topped 12.8%, exceeding preliminary estimates of between 12% and 12.5%.
Supermicro's stock rose more than 5% immediately following the earnings news. This rebound comes after a significant decline; the stock fell 27% over the last month following a Gartner report stating that 80% of neocloud companies would cease operations by 2030 due to a lack of a return on invested capital. Following that report, neocloud companies CoreWeave and Nebius saw their stocks plunge by 40% and 37%, respectively, over the same month. CoreWeave is a customer of Supermicro.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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Super Micro reported fiscal Q1 2027 revenue of $19.95 billion and earnings per share of $1.81, exceeding both Wall Street projections and preliminary guidance.
