Supermicro ships H15 servers on AMD EPYC chips, raises 2027 outlook - Cryptopolitan

The company confirmed customers have already started receiving the servers, which were launched just a day after AMD released the new chips on November 10. The processors, codenamed Venice, utilize AMD's new Zen 6 architecture and mark a significant advancement in server computing capabilities.

Performance specifications

Supermicro's H15 lineup includes over 20 different systems covering servers, storage, workstations and GPU platforms. Each processor socket supports up to 256 cores and 512 threads, enabling simultaneous handling of multiple tasks. The servers utilize AMD's SP7 and SP8 sockets and come with either one or two processors.

The systems feature 16-channel DDR5-8000 memory capable of handling approximately 1.6 terabytes of data per second per socket, along with PCIe 6.0 connections offering up to 96 lanes for rapid data transfer between system components. Each socket can use up to 600 watts of power, requiring advanced cooling solutions that Supermicro provides using either air or liquid cooling methods.

Performance gains

Supermicro claims its new H15 servers offer up to 33% more processing cores than previous models, with data transfer speeds through PCIe connections doubling and memory data handling improving by 2.6 times. When running large AI models, the servers can produce up to 1.8 times more AI-generated text per second compared to older AMD chip-based systems.

The company noted that its 2U Hyper and CloudDC servers broke several performance records in SPEC CPU tests. However, these figures are based solely on Supermicro's own tests against older AMD systems, with no information provided on actual shipment volumes, customers, or revenue generated from the new line.

Financial outlook

Despite the technological advancements, Supermicro faces profitability challenges. For the quarter ended September 30, the company reported $19.9 billion in revenue, exceeding analysts' expectations of $16.3 billion. However, its gross profit margin declined from 17.5% to 12.7%, attributed to a shift toward large AI data center projects that typically yield lower profit margins than sales to other businesses and distributors.

In response to strong demand, Supermicro raised its fiscal 2027 revenue target to as much as $82 billion. The company is also developing two larger AMD-based systems called Helios and Helion, designed for training large AI models and linking multiple servers for high-computing tasks, though these are not included in current shipments.

Market response

Following the announcement, Supermicro shares rose more than 6% in early trading but remain down approximately 24% over the past year, trading near $29 compared with its June high of $51.40. Analyst opinions remain divided, with Susquehanna raising its price target from $15 to $18 but maintaining a Negative rating, while Rosenblatt kept its Buy rating and $57 price target, and BofA Securities retained its Underperform rating with a $39 target.

Overall, analysts have a Hold rating on Supermicro shares with an average price target of about $36.64. The company also faces regulatory scrutiny over reports that servers using Nvidia chips were rented to China's Moonshot AI despite US export restrictions, though Supermicro has stated it does not do business with the companies involved.