Haverhill Financial Research · October 12, 2026
Summary: Haverhill price target $43 (12 months)
Super Micro builds the server racks that AI data centers run on, and orders have never been bigger: more than $60 billion booked in the June quarter, with fiscal 2027 sales guided to $65 billion to $72 billion. The catch is how little of each sale it keeps and how much cash it takes to deliver. Gross margin was 10.8% for fiscal 2026, the June quarter's 17.5% had one-time help, and the company's own guidance points back to about 10.6%. At $41.86 the shares trade at about 9 times our fiscal 2027 earnings estimate, and our 12-month price target of $43 is about 3% above that, so we rate the shares Hold.
Super Micro filings through the fiscal 2026 Form 10-K; Haverhill Financial Research model; price as of Nasdaq close Oct 9, 2026
Demand is not the problem. Revenue rose 78% to $39.1 billion in fiscal 2026, and management guided fiscal 2027 to $65 billion to $72 billion after more than $60 billion of new orders in one quarter.
Margins and cash are. Gross margin fell to 10.8% from 13.8% two years earlier (Haverhill calculation), and operations used $6.8 billion of cash as inventory nearly tripled to $12.9 billion.
Our view: the price already reflects modest margins. Until the auditor signs off on internal controls and cash flow stays positive for a full year, we see fair value close to today's price.
