Core Viewpoint - Super Micro Computer (SMCI) shares have experienced significant volatility, with a recent drop despite strong revenue growth forecasts for fiscal 2026, yet the stock is still up nearly 40% year-to-date [1] Company Overview - Super Micro Computer designs and assembles servers and rack solutions for data centers, including networking and cooling systems, often customized around Nvidia's GPUs, making it a key partner for the chipmaker [2] Financial Performance - For the quarter ended September 30, Supermicro's revenue decreased by 15% year-over-year to $5.02 billion, missing the analyst consensus of $5.8 billion and falling short of the company's own forecast of $6 billion to $7 billion [5][6] - The company lowered its revenue guidance to $5 billion due to delays in "design win upgrades," indicating ongoing challenges in revenue forecasting [6] - Gross margin has been under pressure, dropping from 17% a year ago to 9.3% in the latest quarter, impacting profitability [7][8] - Adjusted earnings per share (EPS) fell 52% to $0.35, missing the analyst consensus of $0.37 [8] Future Projections - Supermicro projected fiscal Q2 revenue between $10 billion and $11 billion, significantly above the $7.8 billion analyst consensus, but adjusted EPS guidance of $0.46 to $0.54 was below the $0.61 consensus [9] - The company raised its full-year revenue forecast to at least $36 billion, up from a prior outlook of at least $33 billion [9] Valuation Metrics - The stock trades at a forward price-to-earnings (P/E) ratio of 13.5 based on fiscal year 2026 estimates and a forward price/earnings-to-growth (PEG) ratio below 0.4, suggesting it may be undervalued [10] Competitive Landscape - Supermicro operates in a low-margin, low-moat business facing intense competition and has struggled with GPU product transition cycles, which may pose ongoing challenges as Nvidia introduces new architectures [12]