Catherine Murphy

Katherine Murphy from Goldman Sachs asked for more details on the 300 AIDE customer wins in the quarter, specifically regarding the mix across use cases and customer types, and areas of particular traction. She also sought insights into the potential contributions and margin profile of AFX and AIDE for fiscal year 2027.

Answer

CEO George Kurian highlighted strong AI momentum across multiple industries, including public sector, manufacturing, healthcare, life sciences, financial services, and semiconductors, with AFX gaining traction in neoclouds for model training and fine-tuning. He noted AFX exceeded early expectations despite being a new architecture requiring customer qualification. AIDE provides differentiation for both new and existing environments. He deferred specific fiscal 2027 outlook for these products.

Katherine Murphy from Goldman Sachs asked for more details on the 300 AI deals signed in the quarter, an increase from 200 in the previous quarter, specifically regarding the mix of use cases and customer types, and areas of particular traction. She also inquired about the potential contributions and margin profile of AFX and AIDE for fiscal year 2027.

Answer

CEO George Kurian highlighted strong AI momentum across various industries, including public sector, manufacturing, healthcare, life sciences, financial services, and semiconductors. He noted early adoption of AFX in neoclouds for model training and fine-tuning, exceeding initial expectations for its first quarter of availability. Kurian added that AIDE provides differentiation for both new and existing customer environments, and more details on the outlook for these products will be shared in the next fiscal year.

Catherine Murphy asked about the investments Super Micro needs to make to expand DCBBS capabilities and its go-to-market offering to achieve increased penetration. She also sought clarification on the margin profile of DCBBS relative to sales to large neocloud and GPU as a service customers.

Answer

CEO Charles Liang detailed consistent investments in DCBBS over the past year, with 10 items currently available and 3-5 more planned. He emphasized that DCBBS offers significantly higher gross and net margins, exceeding 20%, due to its unique, pre-designed, pre-validated, and pre-optimized data center solution.

Catherine Murphy inquired about the investments Super Micro is making to expand DCBBS capabilities and its go-to-market strategy, as well as the margin profile of DCBBS relative to sales to large NeoCloud and GPU-as-a-service customers.

Answer

Charles Liang (CEO) detailed consistent investments in DCBBS over the past 12 months, expanding from 10 to an anticipated 13-15 items. He confirmed DCBBS offers significantly higher gross and net margins, exceeding 20%, due to its unique pre-designed, pre-validated data center solution.