Core Insights - Dell Technologies (DELL) and Super Micro Computer (SMCI) are prominent players in the rapidly growing AI server market, with Dell being a diversified infrastructure giant and SMCI focusing on high-performance, customizable AI systems [1][2][3] Dell Technologies (DELL) - Dell shipped $5.6 billion of AI servers in Q3 FY26 and has a backlog of $18.4 billion, with expectations of reaching $25 billion in AI shipments for FY26, indicating strong demand [2][6] - Despite strong revenue growth, Dell faces margin pressures due to rising component costs and a product mix skewed towards lower-margin AI systems, which may impact profitability [4][5] - Strategic partnerships with NVIDIA and collaborations with AMD and hyperscale customers enhance Dell's position in the AI infrastructure market [6] - The Zacks Consensus Estimate for DELL's fiscal 2027 earnings is $11.28 per share, reflecting a slight decrease in earnings expectations [7] Super Micro Computer (SMCI) - SMCI reported $12.68 billion in Q2 FY26 revenues, a 123% year-over-year increase, with over 90% of sales coming from AI GPU platforms [9][10] - The company is rapidly scaling its production capacity, targeting up to 6,000 racks per month by the end of FY26, supported by $4.1 billion in cash [11] - SMCI's gross margin fell to 6.3% from 11.8% year-over-year, influenced by a heavy reliance on large hyperscale customers and supply chain challenges [12] - The Zacks Consensus Estimate for SMCI's fiscal 2026 earnings is $2.22 per share, indicating a 7.77% growth from the previous year [13] Market Performance and Valuation - Year-to-date, Dell's shares have decreased by 7.6%, while SMCI's shares have increased by 3.2%, reflecting stronger investor confidence in SMCI's AI-driven growth [14][15] - Dell trades at a forward 12-month price-to-sales (P/S) multiple of 0.61, while SMCI trades at 0.4, suggesting a more attractive entry point for SMCI [18] - Analyst confidence is reflected in the Zacks Rank, with SMCI rated 3 (Hold) and Dell rated 4 (Sell), indicating lower confidence in Dell's near-term performance [22] Conclusion - While Dell offers scale and diversification, it faces margin pressures and cyclical exposure, whereas SMCI's focused AI strategy and rapid revenue growth position it for stronger momentum, making SMCI a potentially better investment choice [21]

FQ2 2026 Results February 3rd, 2026 Use of Non-GAAP Financial Measures To supplement its condensed consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross profit, gross margin; operating expenses; net income; net income per common share; diluted net income; diluted ...

Core Insights - Super Micro Computer (SMCI) is focusing on AI servers optimized for NVIDIA's latest GPU systems, which are in high demand for AI applications and large-scale deployments [1][4] Group 1: Company Performance - AI GPU platforms contributed over 75% of SMCI's revenues in the first quarter of fiscal 2026 [2][11] - SMCI launched new liquid-cooled 4U and 2-OU systems, which are now ready for volume shipments, enhancing its product offerings [2][11] - Despite a revenue decline in the first quarter of fiscal 2026, this was attributed to a shift in revenue timing rather than demand weakness, with expectations for strong revenue growth in the upcoming quarter [5][11] Group 2: Competitive Landscape - SMCI competes with Dell Technologies and Hewlett Packard Enterprise in the AI and data center market [6] - Dell Technologies has a strong market presence but has not matched SMCI's growth in AI-specific systems, leveraging its ability to bundle hardware with services [7] - Hewlett Packard Enterprise is aggressively expanding into AI and high-performance computing, positioning itself as a direct competitor to SMCI [8] Group 3: Valuation and Estimates - SMCI's shares have decreased by 26.7% over the past six months, contrasting with the 68.1% growth of the Zacks Computer – Storage Devices industry [9] - The company trades at a forward price-to-sales ratio of 0.47, significantly lower than the industry average of 1.75 [12] - Earnings estimates for fiscal 2026 and 2027 indicate a year-over-year increase of approximately 4.85% and 37.9%, respectively, although estimates have been revised downward in the past 60 days [15]

FQ1 2026 Results November 4, 2025 Disclosures Cautionary Statement Regarding Forward Looking Statements Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward -looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "es timate," "expect," "may," "pla ...