Accordingly, Super Micro's adjusted gross margin has fallen significantly to 11.7% in FQ4, down from last year's 17.1%. Hence, even as it aims to scale its DLC solutions quickly, a slower-than-anticipated build-out could significantly impact Super Micro's ability to lift its profitability. In addition, Super Micro reported CapEx spending of almost $137M for FY2024, a significant increase from last year's $37M metric. For FY2025 and FY2026, Wall Street estimates CapEx spending of $121M and $139M, respectively. Super Micro's FQ1 CapEx guidance of between $45M and $55M suggests a notable CapEx ramp cadence in the first fiscal half as the company looks to gain market share quickly.