Super Micro Computer Inc at KeyBanc Technology Forum Transcript

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

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Well done. Let's just start. You guys reported earnings last week. Why don't you give us a quick recap of the fourth quarter?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Got it. One of the things that's come up, and I think it's sort of unclear what exactly is, but a lot of answers to the questions were around Data Center Building Block Solutions, right? Can you help us understand what that is for Super Micro?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : You sort of alluded to it, but how does this different -- sort of change how you guys operate and do business? Is this a big strategic lift, or is it sort of a little bit more simple from an operational standpoint?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Can you talk about the higher value-add services within, what is it, DB --

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : DCBBS, thank you. Like software services, how do you implement more higher value-added services, and talk me a weave in there how you expect that to translate into like gross margins and profitability for you guys? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 5:30PM, SMCI.OQ - Super Micro Computer Inc at KeyBanc Technology Forum

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Got it. Let's talk about revenue growth. Supermicro has been an industry leader, outpacing industry from a growth standpoint. Just help us unpack where you think you are from a market share standpoint, how you've grown over the years and ultimately taking market share?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Got it. You alluded to it. The company recently guided to greater than $33 billion in revenue in fiscal '26. It's over a 50% growth rate and an acceleration year over year. Can you help us understand what you guys are seeing and what data points you can share that can help us get some confidence in that growth reacceleration? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 5:30PM, SMCI.OQ - Super Micro Computer Inc at KeyBanc Technology Forum

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : So help me bridge from a modeling standpoint, because you also guided through your fiscal first-quarter '26 to about 10% growth at the midpoint. Is this a stair function higher throughout the year? Should we just step it up right away in 2Q? How do you want us to think about this?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Sovereign seems like maybe the biggest incremental opportunity because you have some neoclouds as customers. How do you characterize what the demand outlook or opportunity is around sovereign? And you did announce a deal for up to $20 billion for data. Help us understand what the sovereign opportunity is.

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : And that should build over time, outside of fiscal '26 into '27, '28, as other sovereigns develop very high strategies.

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Let's shift gears. Let's talk about gross margins a little bit. You guys just reported about a 10% -- just shy of 10% gross margins. And the company continues to put out expectations to return to a 15% to 17% gross margin. Data Center Building Block Solutions is part of that solution. What have been the factors that got us from the traditional level of gross margins back to today, and how do you see that playing out in the future to get back to the normalized rate?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : What are you seeing from your main competitors? Are they becoming more aggressive from a pricing standpoint? How would you characterize the competitive environment and its impact on gross margins? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 5:30PM, SMCI.OQ - Super Micro Computer Inc at KeyBanc Technology Forum

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : You're clearly trying to make some progress on gross margins operationally with DCBBS. One of the arguments that we've made is margins are structurally moving lower, and it's almost just like a mathematical equation where the bill of materials in the overall server rack contains a higher cost of a GPU, and so margins are to structurally move lower. What do you think of that type of thesis?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Got it. The technology is changing so fast too. I mean, NVIDIA comes up with a new GPU every year, it seems. How do you think about the company's inventory position in terms of, you've had some inventory write-downs. How do you think the inventory position is, and how does that speed of technology change play a role?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Got it. Another question? Unidentified Participant If you have two to four more large-scale customers, will you need to do another capital raise or are those behind you?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Got it. Any other questions from the audience? I'll end with one. We've talked a lot about the neoclouds expansion of that customer set and sovereigns. How do you think about the enterprise as a big channel for you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2025 / 5:30PM, SMCI.OQ - Super Micro Computer Inc at KeyBanc Technology Forum

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Margin -- more accretive?

Question: Brandon Nispel - KeyBanc Capital Markets Inc - Analyst : Well, with that, we're just about out of time. So Michael, thank you very much for being here. And everybody, thanks for your participation.