Super Micro Computer Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Ng - The Goldman Sachs Group, Inc. - Analyst : I was just wondering if you could talk a little bit more midterm about your demand outlook. Are you -- and apologies if I missed it -- reiterating the $40 billion revenue target for fiscal '26? And, perhaps, you can talk a little bit about any changes that you'll be seeing from demand perspective, aside from the timing of the technology platform transition and the macro uncertainty.

Question: Michael Ng - The Goldman Sachs Group, Inc. - Analyst : Great. Charles, that's very helpful. And just as a follow-up, can you talk about whether or not you're seeing differences in demand between HGX versus NBL 72 racks. Any differences there, either in customer demand or your ability to fulfill demand on either product?

Question: George Wang - Barclays Capital Inc. - Analyst : Charles, just a question on the GB 300. Any differences in terms of value-add from Super Micro, just in terms of customization and, potentially, more services attached, with the presumed (inaudible) media potentially open up the components -- more open standards for the GP 300 that

Question: George Wang - Barclays Capital Inc. - Analyst : Okay. Great. Just a quick -- if I can squeeze in -- maybe, for David, and also for Charles. Just in terms of top 2 customers this quarter, combined percentage was a bit lower versus last quarter. So is this because of quarter-to-quarter lumpiness volatility? Or is there anything else you want to call out, in terms of customer contribution a bit lower?

Question: George Wang - Barclays Capital Inc. - Analyst : Just to follow up, any outlook of for the top 2 customers in the next few quarters? Any high-level thoughts? And any other customer set you, guys, are expecting to (inaudible) and pop up?

Question: Asiya Merchant - Citigroup Inc. - Analyst : I know there's a lot of uncertainty with tariffs, et cetera. But is there something that you talk to us -- or see how investors -- AI diffusion rules, there's a lot of investor angst around that. How are you, guys, thinking about your visibility and how the order should flow through, given AI diffusion could impact or possibly could impact your revenues? And then, I have a follow-up.

Question: Asiya Merchant - Citigroup Inc. - Analyst : Okay. And then, if I may, on gross margins, again. Can you just help us understand how you're thinking about the margins, especially as you expand on your DLC version 2. Just how we should think about gross margins in calendar -- fiscal '26, sorry?

Question: Ananda Baruah - Loop Capital Markets LLC - Analyst : Really appreciate it. Two, if I could. This would be for Charles and for Dave. You, guys, made mention of ongoing ramp, as Blackwell supply comes on. And so, should we assume that the September quarter looks up sequentially from the June quarter? And just along with that -- this is not my follow-up -- like when -- during Hopper ramp, you had multiple quarters, that's not accurate, you had two quarters of 70% sequential growth; you had a 40% sequential growth quarter, during the Hopper ramp. So not like a forecast, but are those -- you have 30% up here in June, off of the soft market. So the question is: order of magnitude, can you be up -- you say you'll be up September quarter, again, as Blackwell ramps. And, like, those copper order of magnitude, sequential increases, Charles, through cycle, is that the type of thing that you sound so when you talk excitedly about the (inaudible) potential. Is it that order of magnitude that you think is possible to get back to at some point, as you go through Blackwell cycle? And then, I have a quick follow-up as well.

Question: Ananda Baruah - Loop Capital Markets LLC - Analyst : Okay. That's great. And then, my follow-up is actually more of a technical question. You mentioned in your prepared remarks, Charles, about liquid cooling, the HCXB200s. And the question is: How many HCXB200? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:00PM, SMCI.OQ - Q3 2025 Super Micro Computer Inc Earnings Call And then, if you want to give early comments about the B200. How many HCXs are you actually seeing you can stack in liquid pool? I'm wondering how many GPUs are folks able to stack a liquid cool with HCX? I'm interested in seeing how close you can get -- folks are getting that to the MVL72?

Question: Nehal Chokshi - Northland Securities, Inc. - Analyst : I just want to make sure I understand the inventory reserve that occurred in the March quarter? And then, is there any expectation that there will be inventory reserve in the June quarter? And is that part of the 10% gross margin guidance?

Question: Nehal Chokshi - Northland Securities, Inc. - Analyst : Okay. And so, just this inventory reserve that you're taking as a charge, that basically means -- if you look at the impact of 200 basis points for March where that basically equates to $100 million. And then, you had a $1 billion shortfall on revenue. And so, does that basically mean that some percent of that shortfall just isn't finding a new home? Or does that mean that that shortfall is being resold in the June and September quarter at a lower price?

Question: Jonathan Tanwanteng - CJS Securities, Inc. - Analyst : I was wondering if you could expand on that platform decision a little bit more. Is it customers declined to take Hopper and decided to move to Blackwell? Is it something else? Is that what I'm hearing? And was it due to design or demand performance considerations? Or was there something else going on with, maybe, data center constraints or something like that?

Question: Jonathan Tanwanteng - CJS Securities, Inc. - Analyst : Okay. Great. Charles, I also wanted to touch on something you mentioned before, just with one of the biggest US server manufacturing operations. Can you just talk about your relative strength there and positioning in US domestic manufacturing versus your competitive set? And how much of an advantage is that when you are seeing tariffs going up across multiple industries? And is that providing you any more additional demand? Or is that too hard to see, right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:00PM, SMCI.OQ - Q3 2025 Super Micro Computer Inc Earnings Call

Question: Nicholas Doyle - Needham & Company, LLC - Analyst : On for Quinn Bolton. Can you just talk about your supplier allocations? Are you seeing the same GPU allocations for Blackwell, as you have for Hopper? How is your supply change, as more competitors enter the market?

Question: Mehdi Hosseini - Susquehanna Financial Group, LLLP - Analyst : I'm a little confuse with capacity. I see the slide that capacity has remained around 5,000 racks per month. But your CapEx has been aggressive. Can you help me reconcile the CapEx and existing capacity? And I have a follow-up.

Question: Mehdi Hosseini - Susquehanna Financial Group, LLLP - Analyst : But Charles, how does that 5,000 per month today compared to like six months ago? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:00PM, SMCI.OQ - Q3 2025 Super Micro Computer Inc Earnings Call

Question: Mehdi Hosseini - Susquehanna Financial Group, LLLP - Analyst : Where are we with the CFO search?