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Super Micro Computer’s (SMCI) AI-Fueled Data Center Boom—Can DCBBS Sustain Margin Expansion at Scale?

Super Micro Computer, Inc. shared its strong financial performance for Q2 and the first half of fiscal year 2026, with clear indications of growth, while also addressing challenges in margins due to various operational costs. The company reported a record revenue of TWD 12.7 billion, equivalent to a substantial 123% year-over-year growth. This performance is primarily driven by accelerated AI infrastructure demand across key customer segments and the deployment of the company’s Rack Scale AI solutions. The company has been focusing on its Data Center Building Block Solutions (DCBBS), which has shown promising potential by contributing 4% to profit and is anticipated to reach double-digit profit contribution by the end of calendar year 2026. DCBBS aims to improve time-to-deployment and time-to-online efficiencies, which has garnered significant interest from customers seeking quicker and more cost-effective data center solutions.