Super Micro Computer announced a new line of 10‑U air‑cooled servers that feature AMD Instinct MI355X GPUs and began shipping on November 19, 2025. The systems deliver 288 GB of HBM3e memory per GPU, 8 TB/s memory bandwidth, and a 1,400 W thermal design power, representing a double‑digit performance increase over the company’s existing 8‑U MI350X platform.
The new servers are designed for high‑performance AI workloads in environments that prefer air cooling. By offering a fully integrated, air‑cooled solution that rivals the company’s liquid‑cooled offerings, Super Micro expands its Data Center Building Block Solutions (DCBBS) portfolio and gives hyperscalers and enterprise customers a higher‑density, lower‑maintenance option for AI infrastructure.
Super Micro’s Q1 FY2026 financial results, released on November 4, 2025, showed revenue of $5.02 billion, a 15% year‑over‑year decline, and earnings per share of $0.35, beating consensus estimates of $0.28. Gross margin fell to 9.5% from 13.3% in the prior quarter, reflecting margin compression driven by a shift toward higher‑margin solution offerings, cost inflation, and customer order delays that reduced revenue recognition.
Segment analysis indicates that AI GPU platforms now account for more than 75% of the company’s revenue, yet the mix shift has contributed to the margin squeeze. The high‑volume, high‑margin AI contracts have been offset by lower‑margin legacy hardware sales and increased cost of components.
In a statement, Charles Liang, President and CEO, highlighted the company’s strong customer engagement: “Super Micro is seeing outstanding levels of customer engagements for newly released AI liquid‑cooled solutions and numerous key customers ramping large, multi‑quarter, volume deployments.” Vik Malyala, SVP of Technology and AI, added that the new air‑cooled MI355X systems “expand and strengthen our portfolio of AI solutions and give customers more choices as they build next‑generation data centers.”
Management guidance for the next quarter lowered revenue expectations to $5 billion, down from a prior range of $6 billion to $7 billion, citing customer order delays. However, full‑year revenue guidance was raised to at least $36 billion, up from $33 billion, indicating confidence in long‑term AI demand. The company also reiterated its focus on cost discipline and strategic investments in high‑return verticals.
Investors reacted cautiously to the earnings release, focusing on the margin compression and the downward revision of short‑term revenue guidance. The product launch, however, provided a positive signal of the company’s agility in integrating new GPU technologies and expanding its AI portfolio, which helped temper the overall negative sentiment.
The launch of the 10‑U air‑cooled MI355X servers demonstrates Super Micro’s continued ability to innovate and meet the growing demand for AI infrastructure. While margin pressure remains a short‑term headwind, the company’s strategic focus on high‑margin solutions and its expanding AI portfolio position it well for long‑term growth in the competitive AI server market.
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