Super Micro Computer, Inc. ( SMCI ) stock had a few tough weeks after dropping from around $60 to $50. Nevertheless, the stock is still around 9% more expensive than it was when I wrote my previous bullishComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my i ...

Group 1: Apple - CEO Tim Cook expects the Chinese market to recover growth in the upcoming fiscal quarter, driven by iPhone sales, with overall sales projected to increase by 10% to 12% year-over-year [2][4] - Apple reported total net sales of $102.466 billion for Q4, up from $94.93 billion year-over-year, with net profit of $27.466 billion compared to $14.736 billion in the same period last year [5] Group 2: Meta - Meta issued $30 billion in corporate bonds, the largest issuance of the year, with record subscription orders reaching $125 billion [6] Group 3: Nvidia - Nvidia has invested in 59 AI startups this year, surpassing the total number of investments made last year, and plans to invest up to $1 billion in the AI startup Poolside, potentially quadrupling its valuation [7] Group 4: OpenAI - OpenAI is preparing for an IPO that could value the company at up to $1 trillion, with a minimum fundraising target of $60 billion, and is expected to submit its application as early as the second half of 2026 [8] Group 5: Microsoft - Microsoft plans to increase its AI computing power by over 80% this year due to high demand for its cloud and AI services, and aims to double the size of its data centers in the next two years [9][10] Group 6: Amazon - Amazon reported total net sales of $180.169 billion for Q3, up from $158.877 billion year-over-year, with net profit of $21.187 billion compared to $15.328 billion in the same period last year [12] Group 7: Netflix - Netflix announced a 10-for-1 stock split, effective November 17, to make its stock more accessible for employees participating in stock option plans [13] Group 8: Paramount - Paramount is laying off approximately 2,000 employees to address internal redundancies and adapt to changing priorities [14] Group 9: Vodafone - Vodafone plans to acquire German cloud computing company Skaylink for €175 million (approximately $204.09 million) to expand its service offerings [15] Group 10: Iliad - CK Hutchison is considering a potential merger of its Italian telecom unit Wind Tre with Iliad's Italian operations, with Iliad's business independently valued at over €3 billion [16] Group 11: Super Micro - Super Micro Computer, Inc. has established Super Micro Federal LLC to accelerate its expansion into the U.S. federal market, focusing on high-performance AI-ready solutions [17] Group 12: CSP Capital Expenditure - Global cloud service providers are expected to increase capital expenditures to $520 billion in 2026, driven by the rapid expansion of AI server demand, with a projected 61% year-over-year increase in 2025 [18]

Core Insights - Super Micro Computer Inc. (NASDAQ:SMCI) is recognized as a promising growth stock for the next five years, particularly following the launch of its new 6U 20-Node MicroBlade system featuring AMD EPYC 4005 Series Processors [1][3] Group 1: Product Launch and Features - The new 6U MicroBlade system is designed to be a cost-effective and environmentally friendly solution for Cloud Service Providers, achieving 3.3 times higher density than traditional 1U servers, allowing up to 160 servers and 16 Ethernet switches in a single 48U rack, resulting in up to 2560 CPU cores per rack [2] - The system utilizes Supermicro's unique building block architecture, providing up to 95% cable reduction, 70% space savings, and 30% energy savings compared to traditional 1U servers, which helps enterprises maximize their Total Cost of Ownership (TCO) savings [3] Group 2: Company Overview - Super Micro Computer Inc. and its subsidiaries develop and sell server and storage solutions based on modular and open-standard architecture across the US, Asia, Europe, and internationally [4]

Core Insights - Super Micro Computer (NASDAQ: SMCI) faced significant challenges in 2024, particularly in the latter half, due to the resignation of its auditor, raising concerns about financial accuracy and leading to a substantial decline in stock value [1] - In contrast, 2025 has seen a notable recovery, with shares increasing by 72% due to excitement surrounding artificial intelligence (AI) [2] Financial Performance - Supermicro's growth has decelerated, with its IT equipment and infrastructure sales showing a marked slowdown in recent quarters [3] - Despite maintaining a positive growth rate, the current performance may not meet investor expectations, potentially indicating that customers feel adequately equipped or are hesitant due to economic slowdown risks [4] Valuation Analysis - The stock's price-to-earnings (P/E) ratio has risen from around 10 last year to approximately 32, indicating that it is no longer as attractively priced as before [6] - Currently trading near the consensus analyst price target of $48 suggests limited short-term upside, and the company will need to demonstrate stronger results in upcoming quarters to justify a higher valuation [7]

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].