SMCI reports $10.2 billion in Q3 sales, up 123% year-over-year, driven by AI infrastructure demand but constrained by low gross margins.
Super Micro Computer (NASDAQ: SMCI) posted a 123% year-over-year increase in net sales to $10.2 billion for the third quarter of fiscal 2026, ending March 31. The surge reflects strong demand for AI-related server infrastructure, fueling rapid growth in recent years.
Despite the revenue jump, gross margins remained under 10%, with costs eroding profitability. Over the past nine months, revenue rose 72% to $27.9 billion, while gross profit grew just 21% to $2.3 billion, highlighting persistent margin pressures.
The company’s reliance on AI-driven demand leaves it vulnerable to market shifts, raising concerns about long-term sustainability despite its top-line performance.