Super Micro Faces Pressure as NVIDIA's GB300 Steals AI-Server Spotlight

Super Micro Computer faces pressure as the AI server market shifts towards NVIDIA's GB300 platforms. The company cut its FY26 revenue outlook to $33 bln, citing slower sales, margin pressures, and inventory of older products. Analysts expect uneven performance as Super Micro navigates rapid product transitions and works down existing inventory, despite shares trading at a discounted multiple.

Super Micro Computer (SMCI) is facing significant challenges in the AI server market as it transitions towards NVIDIA Corporation's (NVDA) next-generation GB300 platforms. The company recently cut its fiscal year 2026 (FY26) revenue outlook to $33 billion, down from an earlier projection of $40 billion. This revision was attributed to slower sales, margin pressures, and inventory of older products [1].

Despite strong demand for AI servers, SMCI's near-term risks include customer order delays and competitive losses, such as the contract with Elon Musk's X that went to Hewlett Packard Enterprise (HPE). Analysts expect uneven performance as SMCI navigates rapid product transitions and works down existing inventory. The company's shares trade at a discounted multiple, but margin contraction and inconsistent guidance suggest continued volatility ahead [1].

In August 2025, SMCI announced the expansion of its NVIDIA Blackwell system portfolio, introducing new liquid- and air-cooled AI infrastructure solutions designed to improve efficiency, simplify deployment, and support upcoming NVIDIA platforms for large-scale AI workloads. These innovations aim to reduce data center power consumption and water usage, aligning with customer sustainability priorities [2].

However, the success of these new offerings depends on whether customers accelerate orders rather than defer purchases in anticipation of newer platforms. The introduction of SMCI's new 4U DLC-2 liquid-cooled system, supporting NVIDIA’s HGX B200 and future B300 platforms, stands out as a relevant recent announcement. This product’s focus on power and water savings, along with streamlined deployment, is designed to appeal to large AI data centers [2].

Despite these advancements, margin pressure from increased price competition and long customer decision cycles remains a central risk. SMCI’s narrative projects $48.2 billion in revenue and $2.4 billion in earnings by 2028, requiring 29.9% yearly revenue growth and a $1.4 billion increase in earnings from the current $1.0 billion level [2].

References:
[1] https://uk.finance.yahoo.com/news/super-micro-faces-pressure-nvidias-122201277.html
[2] https://finance.yahoo.com/news/bull-case-super-micro-computer-103002914.html