Key Points Supermicro's valuation took a beating last year amid concerns around its financials after its auditor resigned. Its reduced price has allowed it to rally significantly this year. Its growth rate, however, has been slowing down sharply in recent quarters. 10 stocks we like better than Super Micro Computer › Super Micro Computer (NASDAQ: SMCI) had a tough year in 2024 (specifically in the latter half) with its auditor resigning, which raised serious concerns about the company's financials ...

Company Overview - Super Micro Computer (SMCI) stock has shown a positive improvement in its Relative Strength (RS) Rating, increasing from 77 to 81, indicating stronger market performance [1][7] - The stock is currently forming a cup with handle pattern, with a buy point set at 58.78, and it is crucial for the stock to clear this breakout price with volume at least 40% above average [3] Financial Performance - Earnings growth for Super Micro Computer improved from -53% to -24% in the last quarter, while revenue growth decreased from 19% to 8% [3] - The company is expected to release its next financial numbers around November 4, which will be important for assessing future performance [3] Industry Position - Super Micro Computer ranks No. 4 among its peers in the Computer-Hardware/Peripherals industry group, with Dell Technologies holding the top position [4] - The historical data suggests that stocks with an RS Rating over 80 are likely to experience significant price movements, indicating potential for Super Micro Computer as it approaches this threshold [2]

Group 1 - Jim Cramer advised selling Super Micro Computer, Inc. (SMCI) and buying Dell instead, citing concerns over SMCI's accounting issues [1] - Super Micro Computer designs and sells modular server and storage systems, focusing on AI, cloud, and edge computing solutions [1] - Cramer highlighted that despite the potential of SMCI, other AI stocks may offer better upside potential with less downside risk [1] Group 2 - The recommendation to buy Dell was made in light of recent challenges faced by SMCI, including accounting regulations [1] - Cramer noted the departure of Dell's CFO, which has negatively impacted Dell's stock, but he still sees it as a better investment option compared to SMCI [1] - The article suggests that there are undervalued AI stocks that could benefit from current market trends, including tariffs and onshoring [1]

Core Insights - Super Micro Computer has established a subsidiary focused on serving U.S. federal agencies to enhance government efficiency [1] Company Developments - The creation of the subsidiary is part of Super Micro Computer's strategy to cater specifically to the needs of federal agencies [1]

Core Viewpoint - Super Micro Computer (SMCI.US) has announced the establishment of a federal entity in the U.S. to expand its presence in the federal market, particularly focusing on AI server products [1] Group 1: Company Developments - The new federal subsidiary will leverage the company's data centers to build modular solutions [1] - Super Micro Computer is exploring the establishment of new manufacturing facilities in the U.S. to meet the growing demand [1] Group 2: Market Impact - The company's stock rose over 4% in pre-market trading following the announcement [1]

Core Insights - Super Micro Computer, Inc. (SMCI) has established Super Micro Federal LLC to enhance its presence in the federal market, focusing on high-performance and energy-efficient IT solutions developed in the USA [1][2][3] Group 1: Company Expansion and Commitment - The new federal subsidiary will utilize Supermicro's Data Center Building Block Solutions for rapid customization and deployment of AI-ready systems, ensuring performance and cost-efficiency for government agencies [3] - Supermicro is committed to supporting U.S. federal government initiatives by providing complete data center IT solutions manufactured in Silicon Valley, California [2] - The company is exploring new manufacturing facilities in the U.S. to meet increasing demands, reflecting its dedication to American manufacturing and job creation [4] Group 2: Product and Service Offerings - Supermicro offers a comprehensive range of Application-Optimized Total IT Solutions, including server, AI, storage, IoT, and switch systems, designed to optimize for specific workloads and applications [5] - The company emphasizes its in-house design and manufacturing capabilities across the U.S., Taiwan, and the Netherlands, which enhances operational efficiency and reduces environmental impact [5][7] - Supermicro's award-winning Server Building Block Solutions allow customers to select from a broad family of systems tailored to their needs, supporting various form factors and technologies [5]

Company Overview - Super Micro Computer, Inc. (SMCI) is based in San Jose, California, and specializes in high-performance server and storage solutions with a modular and open architecture. The company has a market capitalization of $30.6 billion and operates across the United States, Europe, Asia, and internationally [1]. Earnings Expectations - Analysts anticipate that SMCI will report an adjusted EPS of $0.32 for the first quarter, representing a significant decline of 52.2% from $0.67 in the same quarter last year. The company has missed bottom-line projections twice in the last three quarters but exceeded estimates once [2]. - For the full fiscal year 2026, the adjusted EPS is expected to be $2.19, reflecting a 27.3% increase from $1.72 in fiscal 2025. In fiscal 2027, earnings are projected to rise by 36.5% year-over-year to $2.99 per share [3]. Stock Performance - Over the past 52 weeks, SMCI stock has increased by 9.7%, which is significantly lower than the Technology Select Sector SPDR Fund's (XLK) 31.2% gain and the S&P 500 Index's 18.3% return during the same period [4]. - The stock has experienced volatility since last year due to corporate governance issues and accounting manipulation, with a notable drop of over 18% in a single trading session following the Q4 results announcement on August 5. Despite a year-over-year increase in net sales of 7.5% to $5.8 billion, the results fell short of market expectations by 3.8%. Additionally, gross margins have been declining, leading to a 26.2% year-over-year decrease in adjusted net income to $260.7 million, which also missed consensus estimates [5]. Analyst Ratings - Analysts maintain a cautious outlook on SMCI, with a consensus "Hold" rating. Among the 19 analysts covering the stock, there are four "Strong Buys," three "Moderate Buys," nine "Holds," one "Moderate Sell," and two "Strong Sells." Currently, the stock is trading above its mean price target of $48.64 [6].

Core Insights - Supermicro (SMCI.US) has partnered with Intel (INTC.US) and Micron Technology (MU.US) to develop a new system that set a record in the STAC-M3 benchmark test, which is designed for high-speed analysis of time-sensitive market data, particularly in financial services [1][2] Group 1: System Performance - The STAC-M3 benchmark focuses on real-time quantitative trading, utilizing simulated market buy and sell quotes along with settlement transaction data from thousands of assets [1] - The system is built using Supermicro's petascale servers, Intel Xeon 6 processors, Micron 9550 SSDs, DDR5 memory, and KX Software's kdb+ database, and was tested at the STAC Summit in New York City [1] Group 2: Market Impact - Alvaro Toledo, Vice President and General Manager of Micron's Americas Core Data Center Business, emphasized that microsecond differences in trading can lead to millions of dollars in profit, highlighting the critical importance of speed in trading [1] - In market trading on Tuesday, Supermicro's stock rose by 1.53%, Intel's stock increased by 5%, and Micron Technology's stock saw a slight uptick of 0.82% [2]

Core Insights - Super Micro Computer Inc has set new world records in the STAC-M3 financial analytics benchmark through collaboration with Intel and Micron, showcasing its high-performance computing capabilities for quantitative trading [1][2] - The company has launched new Petascale servers powered by Intel Xeon 6 processors and Micron 9550 NVMe SSDs, achieving top benchmark results while optimizing space and CPU core usage [2][3] - Supermicro's stock has increased by 72% year-to-date, outperforming the Nasdaq 100 index, as its AI servers gain traction as a key supplier to Nvidia [3] Financial Performance - Supermicro has revised its first-quarter revenue forecast to approximately $5 billion, down from a previous range of $6–$7 billion, due to delivery timing shifts on over $12 billion in design wins expected in the next quarter [5] - The company is targeting $33 billion in revenue for fiscal 2026, driven by rising demand for its liquid-cooled systems [6] Product Development - Supermicro is expanding its server portfolio with the introduction of the MicroBlade multi-node system powered by AMD EPYC 4005 processors, aimed at helping cloud providers and enterprises modernize data centers with improved density and efficiency [4]

Core Insights - Supermicro is showcasing advanced AI infrastructure solutions at NVIDIA GTC, emphasizing systems designed for federal customers and plans to deliver next-generation NVIDIA AI platforms in 2026 [1][5][7] Group 1: Product Offerings - Supermicro is introducing U.S.-manufactured, TAA-compliant systems, including the high-density 2OU NVIDIA HGX B300 8-GPU system, capable of supporting up to 144 GPUs per rack [1][6] - The company is expanding its portfolio with the Super AI Station based on NVIDIA GB300 and the new rack-scale NVIDIA GB200 NVL4 HPC solutions, optimized for federal environments [9][11] - The new Super AI Station delivers over 5x AI PFLOPS of computing power compared to traditional GPU workstations, making it suitable for AI model training and development [11][12] Group 2: Collaboration and Manufacturing - Supermicro's collaboration with NVIDIA aims to enhance AI training and inference performance, with a focus on U.S.-based manufacturing to ensure compliance with federal regulations [2][4][5] - The company emphasizes its San Jose headquarters for developing, constructing, and validating government-optimized systems, enhancing supply chain security [4][7] Group 3: Market Positioning - Supermicro positions itself as a trusted partner for federal AI deployments, leveraging its long-standing relationship with NVIDIA to pioneer American AI infrastructure development [2][3] - The company is optimizing its solutions for the NVIDIA AI Factory for Government reference design, which supports multiple AI workloads while meeting compliance needs [8][9]