Super Micro Computer booked more than $60 billion in new AI server orders in a single quarter, pushing its backlog to a record level. Yet the stock still trades around $30 a share, held back by caution over unfirm orders, a large equity raise, and an ongoing independent review.
Super Micro Computer booked more than $60 billion in new orders in a single quarter, pushing its backlog to a record level. Even so, the stock still trades around $30 per share, a disconnect between order book and valuation that makes the company worth watching now.
Orders surge, margins double
In late July, Supermicro released a preliminary update for its fiscal fourth quarter, which ended June 30. Management said new orders during the quarter exceeded $60 billion, pushing its backlog to a record level as it closed out fiscal 2026.
At the same time, the company guided revenue to come in near the low end of its $11 billion to $12.5 billion range. It estimated gross margins of 15% to 17%, roughly double the 8.2% to 8.4% it had told investors to expect earlier.
A $7 billion raise to fund the backlog
In June, Supermicro said it had received huge AI server orders in recent weeks and laid out a plan to raise $7 billion through concurrent equity and equity-linked financing to fund the components needed to fulfill them. According to Supermicro, it frames this as part of its role as a "Total IT Solution Manufacturer for AI, Cloud, Storage, and 5G/Edge".
Motley Fool contributor Micah Zimmerman argues the pairing of the order wave with a financing package sized to match it suggests customers are committing real money to build AI data centers on Supermicro's designs, not merely reserving capacity.
Why the stock isn't reflecting the backlog
Still, Supermicro's own update carries caution. It explicitly notes that not all of those orders constitute firm commitments and that some may be subject to cancellation or delays. The company also disclosed that its board is overseeing an independent review of certain transactions related to alleged export control issues. Its independent auditor has not yet reviewed the preliminary figures.
That mix of a huge order book and nontrivial risk is why shares sit near their 52-week range of $19.48 to $58.78 instead of at a richer multiple, even as Supermicro holds one of the largest AI server order books on the planet.
Source: The Motley Fool
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