$SUPER MICRO COMPUTER INC(SMCI)$ Dell just handed Supermicro bulls one of the strongest industry confirmations yet.
Dell Q2 numbers:
- Revenue $46.97B, +58% YoY
- AI server revenue $16.4B, +100%
- AI server orders $60.9B
- AI backlog $95B
- ISG revenue $31.8B, +89%
Now compare that with SMCI's latest quarter:
- Revenue $11.12B, about +93% YoY
- GAAP gross margin 17.5%
- Net income $1.18B
- More than $60B in new orders during Q4
- Record backlog
- FY27 revenue guidance $65B-$72B
What matters here: both companies are seeing roughly $60B+ levels of fresh AI infrastructure demand.
Dell's results pretty much destroy the "AI server demand is slowing" narrative. Demand is clearly accelerating across the entire ecosystem.
And despite being much smaller, SMCI's latest quarter showed faster revenue growth and roughly 10.6% net margin vs. Dell around 8.8%.
Dell absolutely deserves credit for its scale, cash generation, and $95B disclosed backlog, but SMCI is growing faster and remains far more concentrated on the AI infrastructure buildout.
The trade is simple: if Dell deserves to rally on explosive AI infrastructure demand, SMCI deserves a serious re-rating if it keeps executing.
This isn't a dying AI cycle. It's a CAPEX super-cycle.
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