Core Insights - Super Micro Computer, Inc. (SMCI) is showcasing its latest high-performance Super AI Station designed for AI developers, start-ups, and research professionals, emphasizing innovation and performance in the desktop, edge, and consumer markets [1][2] Product Innovations - The Super AI Station (ARS-511GD-NB-LCC) features the NVIDIA GB300 Grace Blackwell Ultra Desktop superchip, delivering over 5x AI PFLOPS of computing power compared to traditional PCIe-based GPU workstations, making it suitable for AI model development and deployment [4] - The SYS-542T-2R workstation, powered by Intel Xeon 6 SoC processors, supports a wide range of GPUs and offers built-in media transcoding acceleration, catering to various use cases including live streaming and video-on-demand [4] - The AI PC (AS-C521D-11302U) is designed for the slim PC market, optimized for AI applications in both office and personal use, showcasing a portfolio of GPU-ready workstations [4] - Supermicro is introducing three new edge AI systems based on AMD EPYC 4005 processors, designed for high performance-per-watt edge computing, ideal for virtualized workloads across various industries [4] - The fanless compact edge system (SYS-E103-14P-H) features the Intel Core Ultra Series 3 processor, enabling up to 180 platform TOPS performance, suitable for robotics and AI deployments at the edge [4] Company Overview - Supermicro is a global leader in Application-Optimized Total IT Solutions, committed to delivering first-to-market innovations for enterprise, cloud, AI, and 5G Telco/Edge IT infrastructure [4][5] - The company designs and manufactures its products in-house across the US, Taiwan, and the Netherlands, focusing on improving total cost of ownership (TCO) and reducing environmental impact through green computing initiatives [5]

Core Insights - Supermicro is expanding its manufacturing capacity and liquid-cooling capabilities in collaboration with NVIDIA to deliver data center-scale solutions optimized for the NVIDIA Vera Rubin and Rubin platforms [1][2] - The company’s Data Center Building Block Solutions (DCBBS) approach allows for streamlined production and faster deployment, providing a competitive edge in next-generation AI infrastructure [1][7] Manufacturing and Technology Expansion - Supermicro's partnership with NVIDIA enables rapid deployment of advanced AI platforms, enhancing speed, efficiency, and reliability for hyperscalers and enterprises [2] - The company is investing in expanded manufacturing facilities and a comprehensive liquid-cooling technology stack to streamline production and deployment of fully liquid-cooled NVIDIA platforms [7] Product Features - The NVIDIA Vera Rubin NVL72 SuperCluster integrates 72 NVIDIA Rubin GPUs and 36 NVIDIA Vera CPUs, delivering 3.6 exaflops NVFP4 performance and 1.4 PB/s HBM4 bandwidth [5] - The 2U Liquid-cooled NVIDIA HGX Rubin NVL8 Systems provide 400 petaflops NVFP4 and 176 TB/s HBM4 bandwidth, optimized for AI and HPC workloads [5] - The platform features NVIDIA NVLink 6 for high-speed interconnects, NVIDIA Vera CPU with 2x performance over the previous generation, and advanced reliability features [5][6] Networking and Storage Solutions - The NVIDIA Vera Rubin platform includes NVIDIA Spectrum-X Ethernet Photonics networking, offering 5x power efficiency and 10x reliability compared to traditional optics [6] - Supermicro's storage solutions support the NVIDIA BlueField-4 DPU, enhancing data management capabilities [6] Strategic Positioning - Supermicro's modular DCBBS architecture accelerates deployment and time-to-online, ensuring customers achieve first-to-market advantages [7] - The company is committed to delivering innovative IT solutions across various sectors, including AI, cloud, and 5G infrastructure [8]

Group 1 - The "WanP WanKa" launch ceremony in the Toli gathering area of the Xinjiang Tacheng intelligent computing industry marks the establishment of Xinjiang's first single "WanP WanKa" level intelligent computing industrial park with a computing power of 12,500P [1] - The Toli County in Tacheng has unique climatic and energy advantages for developing the intelligent computing industry, with an average annual temperature of 6 to 7 degrees Celsius providing natural cooling and significantly reducing heat dissipation energy consumption [1] - The region is also capable of building a "million-kilowatt" wind and solar power generation base, ensuring a sufficient supply of low-cost green electricity for the computing power center [1] Group 2 - Since March 2024, Toli County has attracted 22 enterprises to settle in the green carbon intelligent computing industrial park, with a total planned investment of 23 billion yuan, and the computing power scale is expected to exceed 75,000P upon completion [1] - The launch of the WanP WanKa in the Tacheng intelligent computing industry is a significant breakthrough in building a digital transformation power hub and demonstrates the region's commitment to the "green electricity drives green computing" model [1] - The establishment of the cooperation center and the signing of the computing power consumption cooperation agreement by various enterprises, including the China Academy of Sciences and China Telecom, indicate a collaborative effort to enhance the local digital economy [2]

Core Insights - Supermicro has announced the launch of its new MicroBlade multi-node solution powered by AMD EPYC 4005 series CPUs, aimed at providing powerful performance, efficiency, and affordability for data centers [1][2][3] Product Features - The MicroBlade system can accommodate up to 160 servers and 16 Ethernet switches in a single 48U rack, offering significant computing power with integrated management features [2][7] - The design of the MicroBlade systems allows for up to 95% cable reduction, 70% space savings, and 30% energy savings compared to traditional 1U servers, enhancing total cost of ownership (TCO) for enterprises [3][7] - Each MicroBlade server blade supports a single AMD EPYC 4005 CPU with up to 16 cores and 192GB DDR5 memory, making it suitable for various applications including dedicated hosting, VDI, online gaming, and AI inferencing [5][6] Technical Specifications - The AMD EPYC 4005 CPUs feature up to 16 cores and 32 threads with a thermal design power (TDP) as low as 65W, balancing performance and efficiency [6] - The MicroBlade system includes dual-port 10GbE network switches and redundant chassis management modules, simplifying network topologies and reducing management complexity [4][5] Market Positioning - Supermicro positions the MicroBlade as a cost-effective, green computing solution tailored for Cloud Service Providers, emphasizing its high density and efficiency compared to traditional server architectures [2][7] - The company aims to support modern data center needs with its innovative building block architecture, which allows for flexible configurations and scalability [3][8]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenues reached $22 billion, reflecting a 47% year-on-year growth [8][20] - Q4 fiscal year 2025 revenues were $5.8 billion, up 8% year-over-year and 25% quarter-over-quarter [20] - Non-GAAP earnings per share for Q4 were $0.41, down from $0.50 year-over-year, primarily due to tariff impacts [9][25] - Non-GAAP gross margin for Q4 was 9.6%, slightly down from 9.7% in Q3 [23] Business Line Data and Key Metrics Changes - Enterprise channel segment revenues in Q4 were $2.1 billion, representing 36% of total revenues, up 7% year-over-year [20] - OEM appliance and large data center segment revenues were $3.7 billion, representing 63% of Q4 revenues, up 40% quarter-over-quarter [21] - The emerging 5G telco edge IoT segment accounted for 1% of Q4 revenues [21] Market Data and Key Metrics Changes - By geography, the US represented 38% of Q4 revenues, Asia 42%, Europe 15%, and the rest of the world 5% [22] - Year-over-year, US revenues decreased by 33%, while Asia increased by 91% and Europe by 66% [22] Company Strategy and Development Direction - The company is focusing on AI and green computing solutions, with a strategic emphasis on enterprise IoT and telco markets [10][16] - Introduction of the Data Center Building Block Solution (DCBBS) aims to simplify customer data center infrastructure and reduce time to market [12][14] - The company anticipates revenue between $6 billion and $7 billion for Q1 fiscal year 2026, with a long-term goal of at least $33 billion for the full fiscal year 2026 [18][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming previous capital constraints and expects improved chip availability from vendors like NVIDIA [34][35] - The company is optimistic about growth in the AI server market and believes it can achieve both revenue growth and margin expansion [40][66] - Management highlighted the importance of the DCBBS in accelerating customer deployments and enhancing profitability [42][66] Other Important Information - The company completed a convertible bond offering raising $2.3 billion in gross proceeds [26] - Q4 cash flow generated from operations was $864 million, compared to $627 million in the previous quarter [25] Q&A Session Summary Question: What are the bottlenecks for sales and revenue outlook? - Management acknowledged chip availability and resource constraints from vendors as potential bottlenecks but expects improvements [34][35] Question: What is the strategy for competing in the AI server market? - The focus is on both revenue growth and margin expansion through comprehensive solutions like DCBBS [40][42] Question: Can you discuss the opportunity with Sovereigns? - Management sees significant growth potential in building AI infrastructure for various countries, particularly in Europe and the Middle East [46][49] Question: What is the expected gross margin for the full year? - Management is optimistic about margin improvement through DCBBS and other solutions but did not provide specific forecasts [73][74] Question: What is the expected contribution of DCBBS to revenue? - Management anticipates that DCBBS will gradually grow and hopes it will represent a significant portion of revenue in the future [87][101]

Group 1: Data Computing Industry - The Hohhot City has signed 15 key computing power projects with a total investment exceeding 50 billion, expected to provide over 120,000 PetaFLOPS of computing power by the end of 2025 [2] - The computing power scale in Hohhot has reached 101,000 PetaFLOPS, with intelligent computing accounting for 96,000 PetaFLOPS, ranking first in the country [2] - The region has established a complete industrial chain ecosystem from upstream equipment manufacturing to downstream application development, with 45 computing equipment manufacturing enterprises settled [2][3] Group 2: Green Agricultural and Animal Husbandry Products Industry - The green agricultural and animal husbandry products industry is accelerating high-quality development through project construction, with a focus on the lactic acid bacteria industrialization smart factory as a benchmark project [3] - The industry has built a comprehensive industrial chain covering dairy, meat, grass, and alternative food, with major enterprises like Mengniu and Charoen Pokphand leading the way [4] - By 2025, significant investments will continue in the green agricultural and animal husbandry products sector, ensuring the completion of various projects to enhance quality and efficiency [4] Group 3: Airport Economy Industry - The airport economy industry is rapidly emerging, leveraging the construction of the Shenglai International Airport to develop a comprehensive aviation industry chain [6] - Key projects related to the airport, including maintenance bases and food catering, are set to be completed this year, laying a solid foundation for the airport economy [6] - The ongoing development of the airport is expected to enhance economic exchanges and cooperation, attracting more enterprises and talent to the region [6]

Core Insights - Super Micro Computer, Inc. (SMCI) has announced advancements in its Direct Liquid Cooling (DLC) solution, which significantly enhances cooling efficiency for AI and data center applications [1][2][3] Group 1: Technology Improvements - The new DLC-2 solution can reduce data center power consumption by up to 40% compared to traditional air-cooled systems [1][2] - The solution allows for higher liquid inflow temperatures, accommodating up to 45°C, which eliminates the need for chilled water and reduces water consumption by up to 40% [5][7] - The design includes comprehensive cold plate coverage for various components, which lowers fan speeds and reduces noise levels to approximately 50dB [1][7] Group 2: Cost Efficiency - The total cost of ownership for data centers utilizing the DLC-2 solution can decrease by up to 20% [1][2] - The innovative design and efficient liquid circulation enable faster deployment and reduced time-to-online for AI infrastructure [1][7] Group 3: System Specifications - The new architecture features a GPU-optimized server that includes eight NVIDIA Blackwell GPUs and two Intel® Xeon® 6 CPUs within a compact 4U rack height [3] - The in-rack Coolant Distribution Unit (CDU) can remove up to 250kW of heat per rack, enhancing overall cooling capacity [4] Group 4: Market Positioning - Supermicro aims to make liquid cooling more accessible, targeting a market where liquid-cooled data centers are expected to account for 30% of all installations [2][6] - The company provides a comprehensive suite of solutions, including liquid-cooling technologies, networking, and data center management software [7][9]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net revenue of $4.6 billion, a decrease of 19% quarter over quarter but an increase of 19% year over year [21][24] - Non-GAAP EPS for Q3 was $0.31, down from $0.66 in the previous year, primarily due to an inventory write-down of older generation GPUs [10][26] - Non-GAAP gross margin for Q3 was 9.7%, down 220 basis points from 11.9% in Q2, attributed to higher inventory reserves and lower volumes [24][25] Business Line Data and Key Metrics Changes - AI GPU platforms accounted for over 70% of revenues, with enterprise and cloud service provider markets driving demand [21] - Revenue from the enterprise channel was $1.9 billion, representing 42% of total revenues, up from 25% in the previous quarter [22] - OEM appliance and large data center vertical revenues were $2.6 billion, representing 57% of Q3 revenues, down from 75% in the last quarter [23] Market Data and Key Metrics Changes - By geography, the US represented 60% of Q3 revenues, Asia 30%, Europe 6%, and the rest of the world 4% [24] - Year over year, US revenues increased by 3%, Asia by 77%, while Europe decreased by 3% [24] - China continued to represent less than 1% of sales in Q3 [24] Company Strategy and Development Direction - The company is focused on expanding its market share in IT and AI despite macroeconomic challenges and tariff impacts [9] - Introduction of the DCBBS (Data Center Building Block Solutions) aims to streamline data center deployment and reduce costs [12][13] - The company is committed to enhancing its domestic manufacturing capacity and expanding operations in Malaysia, Taiwan, and Europe [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting long-term growth targets despite near-term macroeconomic uncertainties [19] - For Q4, the company anticipates revenues of at least $6 billion, with expectations for strong growth driven by new product launches [19][30] - Management noted that while there are concerns regarding tariffs and macroeconomic conditions, they see strong order momentum [35][36] Other Important Information - The company recorded a net cash position of $44 million, a significant improvement from a negative net cash position of $479 million in the previous quarter [27] - The company expects Q4 GAAP diluted EPS to be in the range of $0.30 to $0.40, and non-GAAP diluted EPS to be $0.40 to $0.50 [29][30] Q&A Session Summary Question: Are customers pulling back orders due to macroeconomic conditions? - Management noted that while there are concerns, they see strong orders and expect a strong quarter in June [35][36] Question: What is the outlook for gross margins? - Management indicated that gross margins are impacted by tariffs and the transition to new technology platforms, leading to a more cautious outlook [38][39] Question: Is the $40 billion revenue target for fiscal 2026 still in place? - Management remains confident in long-term growth but did not provide specific guidance for fiscal 2026 at this time [42][45] Question: How is the demand for different product lines? - There is strong demand for both GB 200 MVL 72 and liquid cooling solutions, but some customers are delaying decisions [46][47] Question: What is the impact of tariffs on operations? - Management is closely monitoring the tariff situation and adjusting logistics to minimize impact [88] Question: What is the status of the CFO search? - The company is actively looking for a new CFO to support its growth [104]