Super Micro Computer’s revenue rose 93% in its latest quarter and 78% in fiscal 2026, but Motley Fool columnist Jeremy Bowman sees better AI-stock choices, including Nvidia, citing its 10.8% gross margin and legal risks despite a P/E of 13.
Super Micro’s growth depends on continued strong demand for AI computing. Analyst consensus cited in the article projects revenue growth of 72% in fiscal 2027, slowing to 17% the following year. The company gets early access to Nvidia chips and uses its customizable Building Block Solutions architecture, liquid cooling and rack-scale integration.
A whistleblower’s accusation of improper revenue practices accelerated the stock’s sell-off in April. Separately, a DOJ probe begun in late 2024 led to charges against insiders earlier this year over an alleged $2.5 billion scheme to smuggle AI servers to China; Super Micro was not named as a defendant.
