Supermicro, a leading server maker, reported disappointing financial results for its second quarter of fiscal 2025, citing slower-than-expected ramp of its new “Blackwell” GPUs from Nvidia. The company’s sales and profitability were impacted by the delay in technology adoption, with the majority of revenues coming from AI systems.
In an earnings call, Supermicro’s founder and chairman Charles Liang attributed the revenue miss to the delayed shipment of Blackwell devices, which are expected to drive more sales and profits for the company. However, the initial ramp of these GPUs was slower than anticipated, resulting in a hit to profitability.
Despite this setback, Supermicro remains optimistic about its long-term growth prospects, with projections indicating 65% year-over-year growth in fiscal 2026, reaching $40 billion in sales. The company plans to focus on increasing volume and making up for the lost revenue by expanding its balance sheet.
Supermicro’s cash reserves have increased significantly over the years, but the company still faces challenges in funding large deals. To address this, Supermicro has raised additional debt through senior convertible notes, which will be used to finance new systems and maintain market share.
With its AI business continuing to grow rapidly, Supermicro is positioning itself for a strong recovery in the coming quarters, particularly with the upcoming launch of new Blackwell GPUs from Nvidia. The company’s focus on volume and balance sheet strength bodes well for its future prospects as it seeks to challenge Dell as the world’s largest server maker.
Source: https://www.nextplatform.com/2025/02/11/extended-blackwell-gpu-ramp-cools-growth-at-supermicro