Key Takeaways SMCI expects Q2 revenues of $10-$11B, implying 83.95% growth from the year-ago quarter.SMCI is benefiting from AI rack-scale systems, liquid cooling demand, and rich partnerships.SMCI faces margin pressure, inventory and cash-cycle strain after ramping AI rack production.Super Micro Computer, Inc. (SMCI) is set to report its second-quarter fiscal 2026 results on Feb. 3, 2026, after market close.For the fiscal second quarter, the company expects revenues between $10 billion and $11 billion. The ...

Core Insights - Super Micro Computer (SMCI) experienced a significant growth in server and storage revenues, which increased by 50.2% year over year, reaching $21.31 billion in fiscal 2025 from $6.5 billion in fiscal 2023, driven by the rising demand for AI servers [1][11] Revenue Growth - The server and storage segment represented 92.2% of total revenues in fiscal 2023, increasing to approximately 97% in fiscal 2025, indicating the segment's growing importance within the company's revenue structure [2] - SMCI projects total revenues of $36 billion in fiscal 2026, reflecting a substantial 64% year-over-year growth [4] Market Position and Partnerships - Partnerships with vendors such as NVIDIA and Advanced Micro Devices enable SMCI to provide cutting-edge GPU-powered platforms, which are in high demand among cloud providers and AI projects [3] - The company is expanding its operations in Europe, Asia, and the Middle East, which presents additional growth opportunities [3] Product Development and Market Expansion - SMCI is entering the client-edge consumer AI markets, leveraging its expertise in AI-optimized servers and energy-efficient designs to offer competitive solutions for PCs and edge AI applications [5] - The company has introduced a diverse AI portfolio, including products like Super AI Station and Supermicro Edge AI Systems, aimed at challenging existing market players [5] Competitive Landscape - SMCI competes with major players like Dell Technologies and Hewlett Packard Enterprise in the AI-based server market, both of which have established customer bases and product offerings [6] - In the rack scale server domain, Dell and HPE provide advanced solutions that cater to high GPU density and thermal management needs [7][8] Valuation and Earnings Estimates - SMCI's shares have decreased by 37.6% over the past six months, contrasting with the 113% 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 2.25 [13] - The Zacks Consensus Estimate for SMCI's fiscal 2026 and 2027 earnings indicates a year-over-year increase of approximately 4.85% and 37.9%, respectively, with estimates remaining stable over the past 30 days [15]

Core Insights - Super Micro Computer (SMCI) is positioned to achieve $36 billion in revenues by fiscal 2026, reflecting a significant 64% year-over-year growth driven by its rack-scale compute architecture for AI applications [1] Group 1: Product Offerings and Market Position - The company is leveraging its expertise in AI-optimized servers and energy-efficient designs to provide compact solutions for PCs, edge AI, and embedded applications, unveiling a comprehensive AI portfolio [2] - SMCI's Super AI Station, featuring the NVIDIA GB300 Grace Blackwell Ultra Desktop superchip, offers five times the AI PFLOPS computing power compared to traditional PCs, enhancing memory coherence, reducing latency, and improving data security for on-prem AI development [3] - The Supermicro SYS-542T-2R targets agentic AI and media workloads, while AMD-powered AI PCs facilitate local AI applications in office environments [4] - SMCI aims to disrupt the AI PC market, which is projected to grow at a CAGR of 19.1% and reach $91.2 billion by 2030 [5] Group 2: Competitive Landscape - Competitors Dell Technologies and HP Inc. have already entered the AI PC market, holding market shares of 13.3% and 19.8% respectively in the global PC market [6] - HP's range of AI-based computing devices and Dell's AI-capable workstations are expected to drive their top-line growth, posing a challenge to SMCI's market entry [7] Group 3: Financial Performance and Valuation - SMCI shares have decreased by 40.6% over the past six months, contrasting with a 72.7% appreciation in the Zacks Computer-Storage Devices industry [8] - The company trades at a forward price-to-sales ratio of 0.44X, significantly lower than the industry's average of 1.94X, indicating potential undervaluation [12] - The Zacks Consensus Estimate for SMCI's fiscal 2026 earnings suggests a year-over-year growth of 2.43%, with a more optimistic 41.78% growth projected for fiscal 2027 [15]

Core Insights - Super Micro Computer, Inc. (SMCI) is showcasing its latest high-performance Super AI Station designed for AI developers, start-ups, and research professionals, emphasizing innovation and performance in the desktop, edge, and consumer markets [1][2] Product Innovations - The Super AI Station (ARS-511GD-NB-LCC) features the NVIDIA GB300 Grace Blackwell Ultra Desktop superchip, delivering over 5x AI PFLOPS of computing power compared to traditional PCIe-based GPU workstations, making it suitable for AI model development and deployment [4] - The SYS-542T-2R workstation, powered by Intel Xeon 6 SoC processors, supports a wide range of GPUs and offers built-in media transcoding acceleration, catering to various use cases including live streaming and video-on-demand [4] - The AI PC (AS-C521D-11302U) is designed for the slim PC market, optimized for AI applications in both office and personal use, showcasing a portfolio of GPU-ready workstations [4] - Supermicro is introducing three new edge AI systems based on AMD EPYC 4005 processors, designed for high performance-per-watt edge computing, ideal for virtualized workloads across various industries [4] - The fanless compact edge system (SYS-E103-14P-H) features the Intel Core Ultra Series 3 processor, enabling up to 180 platform TOPS performance, suitable for robotics and AI deployments at the edge [4] Company Overview - Supermicro is a global leader in Application-Optimized Total IT Solutions, committed to delivering first-to-market innovations for enterprise, cloud, AI, and 5G Telco/Edge IT infrastructure [4][5] - The company designs and manufactures its products in-house across the US, Taiwan, and the Netherlands, focusing on improving total cost of ownership (TCO) and reducing environmental impact through green computing initiatives [5]