Super Micro Computer is leaning harder into the AI buildout, and its latest quarter showed how central that bet has become. In the second quarter of fiscal 2026, the company said it generated $10.7 billion in revenue from its OEM appliance and large data center segment, a business that made up about 84% of the top line.
The surge was not a small step. Super Micro said its revenue climbed 122% year over year in the quarter, and it is still tracking toward a $40 billion revenue target for fiscal 2026. The company’s DCBBS business accounted for 4% of profit in the period, but it expects that share to rise into the double digits by the end of 2026. For investors following smci stock, the message is clear: the company is growing fast because the AI infrastructure market is still expanding faster.
That market has a long runway. The AI data center sector is expected to grow at a 31.6% compound annual rate from 2025 through 2030, reaching $934 billion. Super Micro sits in the middle of that buildout by taking chips from makers such as Advanced Micro Devices and packaging them with cooling systems into racks that run inside data centers. Its customers include AI data centers, hyperscalers, AI-fabs and enterprise buyers, all of which are pushing demand for more compute, more power and more dense hardware.
Super Micro has also been scaling for that demand. It said it reached 63 megawatts of internal power capacity in the quarter and is on track to reach rack capacity of 6,000 units per month by the end of fiscal 2026, including 3,000 direct liquid cooling racks each month. Those are the kinds of numbers that matter in a market where AI GPU platforms account for more than 90% of the company’s revenue streams.
Still, the growth comes with a catch. Inventory jumped to $10.6 billion in the second quarter of fiscal 2026 from $5.7 billion in the first quarter and $4.7 billion at the end of fiscal 2025. That kind of buildup can help a company meet demand, but it can also signal how much capital is being tied up to keep pace with a fast-moving market. Analysts have also trimmed expectations, with Zacks Consensus Estimates for earnings revised down by 3 cents in the past 60 days.
Advanced Micro Devices is part of the same AI infrastructure trade. The company supplies custom silicon solutions, Instinct Accelerators and Alveo Adaptable Accelerator Cards, while its EPYC processors are gaining from stronger server CPU demand as hyperscalers expand infrastructure for cloud and AI workloads. EPYC 4005 Series and AMD Helios have already been integrated into Super Micro’s server systems, tying the two companies closely together in the same supply chain.
For now, both companies are riding the same wave: AI data center spending. Super Micro is turning that demand into revenue at a rapid clip, but its heavy reliance on AI GPU platforms and the ballooning inventory on its balance sheet show how exposed it is if the pace of infrastructure spending cools. The next test is whether it can keep shipping at the scale it is promising without letting those risks outrun the growth.