The announcement follows Supermicro’s preliminary fiscal first-quarter update, which raised its revenue outlook to as much as $19.5 billion on stronger AI platform demand.
- The collaboration combines SMCI’s server infrastructure, Nokia’s radio network software, and Nvidia’s accelerated computing technology
- SMCI estimates first-quarter fiscal (Q1) 2027 revenue of $18.5 billion to $19.5 billion.
- Rosenblatt raised its Supermicro price target to $57 from $51, maintaining a ‘Buy’ rating, per TheFly.
Super Micro Computer Inc. (SMCI) said Wednesday it is working with Nokia (NOK) and Nvidia (NVDA) to bring artificial intelligence computing to 5G networks, allowing telecom operators to run AI services closer to customers while preparing their infrastructure for next-generation 6G technology.
The collaboration combines Supermicro’s server infrastructure, Nokia’s radio network software and Nvidia’s accelerated computing technology. Supermicro did not disclose any customer contracts or revenue expectations tied to the collaboration.
As of this writing, SMCI stock was trading more than 12% higher in Wednesday’s premarket and was among the top trending tickers on Stocktwits.
What Is SMCI Bringing To Telecom Networks?
Supermicro said its server lineup includes systems for individual cell sites and larger network hubs.
Its ARC-Pro system, equipped with Nvidia Grace C1 processors and RTX PRO 4500 Blackwell GPUs, delivers up to 1.6 petaflops of FP4 AI performance, while the larger ARC MGX 4U supports up to eight RTX PRO 6000 Blackwell GPUs.
While some servers supporting Nvidia’s Aerial RAN Computer platform are already available, other models have yet to launch. The dual-Vera ARC MGX 2U is expected later this year, while ARC-Pro is scheduled for customer testing in 2026 before becoming generally available in the first half of 2027.
AI Demand Drives Stronger Quarterly Outlook
The announcement follows Supermicro’s preliminary business update on Tuesday, which estimated first-quarter fiscal (Q1) 2027 revenue of $18.5 billion to $19.5 billion, compared with its previous guidance of $14.5 billion to $15.5 billion.
The company attributed the increase primarily to stronger demand for AI platforms. It also raised its estimated gross margin range to between 12% and 12.5%, from 10.4% and 10.8%, citing customer and product mix.
Following the update, Rosenblatt raised its price target to $57 from $51 and maintained a ‘Buy’ rating. SMCI shares remain close to the firm’s “back-up-the-truck” levels in the low $30s, the analyst told investors, according to the note cited by TheFly.
Bank of America also raised its price target to $38 from $33 but maintained an ‘Underperform’ rating, citing pricing pressure in AI servers and racks, rising component costs and the typically lower margins associated with large deals.
BofA nevertheless viewed SMCI’s stronger preliminary revenue as a positive demand signal for rivals Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE).
Supermicro Expands AI Push With Nutanix
Separately, Supermicro and Nutanix (NTNX) announced plans for jointly engineered AI infrastructure combining Supermicro servers, Nvidia GPUs and Nutanix Agentic AI to support private enterprise inference workloads.
Supermicro’s preliminary financial figures remain unaudited and subject to revision. Investors will get a clearer picture of its AI-driven growth and profitability when the company reports finalized first-quarter results on November 3.
What Retail Thinks About SMCI Stock
Retail investors’ sentiment around SMCI stock flipped into ‘bullish’ territory on Stocktwits amid high message volume.
So far this year, SMCI stock has risen nearly 5%. By comparison, the iShares Future AI & Tech ETF (ARTY), which holds the stock, has risen nearly 44% over the same period.
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