Super Micro Computer Sees Stock Price Rise After Partnership With Cisco

Super Micro Computer (SMCI) has seen its stock price rise by 6.8% after announcing it will supply high-density, liquid- and air-cooled GPU systems to Cisco's Secure AI Factory with NVIDIA. This partnership positions Super Micro as a core hardware provider within Cisco's unified AI networking stack, deepening its role in turnkey, rack-scale AI data center deployments.

The inclusion of Super Micro's liquid-cooled GPU systems in the Cisco Secure AI Factory is seen as supportive for the company's near-term prospects. However, investors should be aware that strong AI server sales may not necessarily translate into more consistent margins and less earnings lumpiness.

Super Micro has provided FY2027 guidance, calling for net sales of between $65.0 billion to $72.0 billion, with AI-related solutions expected to exceed 80% of revenue. The company's narrative projects revenue of $91.7 billion by 2029 and earnings of $3.4 billion, requiring 32.9% yearly revenue growth.

The partnership with Cisco and the guidance point to Super Micro leaning harder into full-stack AI infrastructure, which could amplify the impact of shifts in large customer orders and buying cycles, especially around next-generation GPU platforms.