Super Micro Computer(US:SMCI) ZACKS·2025-11-27 16:11Core Insights - Super Micro Computer, Inc. (SMCI) aims for $36 billion in revenues for fiscal 2026, indicating a significant 64% year-over-year growth despite a recent quarterly revenue decline of 15.5% [1][9] - The revenue drop is attributed to a shift in shipments rather than a decrease in demand, suggesting that the $36 billion target remains realistic [1][9] Revenue Growth Drivers - The company is focusing on its Data Center Building Block Solutions (DCBBS), which provide modular infrastructure for AI data centers, expected to attract both hyperscale and enterprise customers [2] - Partnerships with NVIDIA and Advanced Micro Devices enhance SMCI's ability to deliver high-demand GPU-powered platforms, with expansion plans in Europe, Asia, and the Middle East further supporting growth [3] Competitive Landscape - SMCI competes with Dell Technologies and Hewlett Packard Enterprise in the AI and data center market [5] - Dell Technologies has a strong position due to its established distribution and service offerings, although it has not matched SMCI's growth in AI-specific systems [6] - Hewlett Packard Enterprise is aggressively expanding into AI and high-performance computing, positioning itself as a direct competitor to SMCI [7] Financial Performance and Valuation - SMCI's shares have increased by approximately 7.7% year-to-date, compared to the Zacks Computer – Storage Devices industry's growth of 67.8% [8] - The company trades at a forward price-to-earnings ratio of 15.52, which is lower than the industry average of 18.91 [10] Earnings Estimates - The Zacks Consensus Estimate for SMCI's fiscal 2026 revenues is $36.70 billion, reflecting a 67% year-over-year increase [4] - Earnings estimates for fiscal 2026 and 2027 indicate a year-over-year increase of approximately 4.4% and 44%, respectively, although recent revisions have been downward [11]