Supermicro Stocks Soar on Cisco Distribution Deal

Supermicro's stock surged 8.63% to $38.21 on August 25, 2026, after Cisco announced plans to start selling its AI systems in October as part of a new distribution deal.

The deal integrates Supermicro's rack-scale AI systems into Cisco's secure factory framework, expanding the company's access to major clients.

Cisco President Jeetu Patel stated, 'We are at the beginning of one of the largest datacenter buildouts in history.'

Supermicro's revenue for its fiscal fourth quarter climbed to $11.1 billion, an increase of 93.2%, with a gross margin improvement to 17.5% from 9.5%. The company forecasts revenue between $65 billion and $72 billion for fiscal 2027, indicating 75.4% growth compared to the previous year.

Analysts are still cautious, however, with 11 out of 19 firms assigning a Hold rating. The consensus price target points to a 10.9% upside, which falls short of the company's projected sales growth.