Track market-moving stories before they get noisy

When Super Micro Computer joined the S&P 500, index funds had no choice but to buy in at the peak of the hype. What happened next reveals a hidden cost that never appears on any fee disclosure.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

On March 1, 2024, the day its addition to the S&P 500 was announced, Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) closed at a split-adjusted $90.55. As of October 21, 2026, it traded at $35.44. From that announcement close, the dividend-adjusted price change is -60.86%. If you own Vanguard S&P 500 ETF (NYSEARCA:VOO), your fund had to buy the stock anyway.

Look at the headlines from that day. CNBC wrote that Super Micro was joining the index after its price soared more than twentyfold in two years. Reuters reported that the shares surged on the news. The stock was announced for inclusion on March 1 and entered the index soon thereafter. The figures in this article all start from the announcement date, not from Super Micro’s first day inside the index.

Your Fund’s Rulebook Buys Stocks Without Judging the Price
Vanguard’s April 28, 2026 prospectus spells out the mechanism clearly. The fund “attempts to replicate the Target Index by investing all, or substantially all, of its assets in the stocks that make up the Target Index, holding each stock in approximately the same proportion as its weighting in the Target Index.”

Read that as a rule, because that is how the fund works. The announcement moves the price. Then the fund purchases after the news that raised the stock is already public. Index funds are price-takers (buyers who accept any price) at inclusion. They have no option to wait for a better entry.

Your Fee Is Tiny, and Timing Never Appears on the Bill
The visible cost is minimal. Total annual expenses run 0.03%. The prospectus puts that at $3 in the first year on a $10,000 investment and $39 over 10 years, assuming a 5% annual return. Portfolio turnover was 1% in the first half of 2026, which keeps trading costs and tax drag low.

The fee line leaves out what the fund paid to own a stock just after the market had already priced in the good news. That cost shows up only in returns, and no factsheet lists it.

One Holding Among Hundreds Has Limited Reach
Keep this in proportion. As of June 30, 2026, the fund held 519 stocks and $1,675,038 million in net assets. A single holding in a portfolio that size has limited effect on the whole fund. The ETF itself has returned 14.4% year-to-date and 16.58% over the past year.

Super Micro has also swung hard in both directions since the announcement. The stock is up 21.08% year-to-date, down 35.61% over the past year, and up nearly 9% during the October 21 session, after preliminary sales figures lifted AI stocks, according to Bloomberg. Some index additions rise after they join. Super Micro is one example of a structural feature. It does not prove a rule.

The same market-cap rules also pour money into whatever has already run. Information technology made up 38.0% of the fund’s net assets at midyear. That concentration is a second cost an index buyer accepts without being asked.

Switching to a Twin Fund Leaves the Mechanism in Place
iShares Core S&P 500 ETF (NYSEARCA:IVV) tracks the same index, so it works on the same addition calendar. Changing issuers changes the logo, and the buying schedule remains the same. Avoiding post-inclusion timing would mean a fund whose managers judge prices, and that brings higher fees and a manager who can also be wrong. The rules that purchase Super Micro are the same rules that keep this fund cheap, diversified, and free of any manager’s guesswork.

What This Means for Your Retirement Account
For a long-term holder adding money steadily, the cost of inclusion timing is usually a rounding error. It is part of what you get for paying $3 a year per $10,000. It starts to matter when a hot stock joins at a significant weight, or when the index’s largest sector already represents nearly 40% of your portfolio. Index funds do sometimes buy at the wrong time, by design. The question worth asking is whether you understand when your index fund purchases, and whether you can live with that schedule.

Released: The Definitive Guide to Retirement Income(Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out.

It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here ›

Contact [email protected] for any questions or corrections.

Supermicro just booked a record order backlog while its stock sits near 52-week lows, trading at a fraction of what rivals Dell and Arista command. Whether that gap represents a rare opportunity or a value trap depends on one critical…

Shares of Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) trade at $32.07 at midday. The 24/7 Wall St. price target for Supermicro is $40.06 over the next 12 months, which means 24.85% upside. Our model rates the stock a buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $32.07 Price Target from 24/7 Wall St. $40.06 Upside/Downside 24.85% Recommendation BUY Confidence Level 90% Management booked over $60 billion in new orders and guided fiscal 2027 revenue to $65 billion to $72 billion. Yet the stock trades at 10x forward earnings. I think the recent selloff leaves plenty of room for upside in one of the most direct ways to own the AI data center buildout.

A Sharp October Slide Follows a Record Order Book Supermicro is down 19.78% over the past week and 17.96% over the past month. Shares are still up 9.57% year to date. The stock sits about 42% below its 52-week high of $55.35 and about 65% above its low of $19.48.

The fiscal fourth quarter report, released August 11, 2026, came in light on revenue and strong on profit. Revenue rose 93.2% YoY to $11.12 billion, missing the $11.56 billion consensus. Management called the shortfall “purely a timing story” linked to customers’ power and cooling preparation. Non-GAAP EPS of $1.70 beat the $0.9575 estimate.

On August 20, 2026, Supermicro reported finishing an independent export compliance investigation, which found no evidence it directly sold export-controlled products to known restricted parties. In September, working with NVIDIA (NASDAQ:NVDA), it began shipping NVIDIA Vera Rubin NVL72 racks.

Why Bulls See $46 Within Reach In our bull scenario, SMCI reaches $46.31, a 44.33% return. That depends on converting the backlog into sales. Management expects greater than 80% of future revenue to come from AI. Manufacturing capacity is on track to exceed 6,000 racks per month.

Customer breadth is also improving: nine customers exceeded $1 billion in fiscal 2026 sales, up from four a year earlier. Enterprise and channel revenue rose 172% YoY.

Chief executive Charles Liang said the data center building block line “will be our long-term much better profit margin product line.”

Cash Burn Is What Could Go Wrong The bear case places the stock near $32 a year from now. Operations used $6.8 billion in fiscal 2026, and the cash conversion cycle extended to 149 days. One customer made up 28% of revenue.

Wall Street remains cautious, with 11 Hold ratings. Guidance for a Q1 non-GAAP gross margin of 10.4% to 10.8% also shows that Q4’s margin included non-recurring benefits.

Bulls would argue that the cash outflow paid for inventory needed to fill record orders. A $5.6 billion equity raise also cut net debt to $1.2 billion.

Supermicro Trades at a Steep Discount to Dell and Arista Dell Technologies (NYSE:DELL) is Supermicro’s most direct AI server rival. Shares trade at 21x forward earnings and 1.899x sales. That is a rich premium to SMCI for a company selling similar hardware.

Arista Networks (NYSE:ANET) depends on the same hyperscaler spending through data center switching. It commands 39x forward earnings, a premium that reflects its software-like margins. Together, these peers make our target look conservative (we covered seven more AI infrastructure suppliers, from power to networking, in a free report you can grab here).

Company Forward P/E Price-to-Sales Supermicro 10x 0.524x Dell 21x 1.899x Arista 39x 21.18x Valuation Tips the Scale Toward Upside Our 24/7 Wall St. price target of $40.06 carries a buy rating and 90% confidence. Valuation is what tips the scale.

The bull case strengthens if the next earnings report shows Q1 revenue within the $14.5 billion to $15.5 billion guide. The thesis weakens if shipments slip again. At this price, the potential reward outweighs the risk.

Beyond the near term, here is where our model projects Supermicro could trade if current trends hold.

Year Price Target from 24/7 Wall St. 2026 $33.60 2027 $41.48 2028 $47.31 2029 $51.25 2030 $57.43 Supermicro needs to keep executing on its AI rack strategy for these estimates to hold. Faster margin expansion or extended cash burn could move results well beyond this range.

Contact [email protected] for any questions or corrections.

Even though Super Micro Computer (NASDAQ: SMCI) stock has been trapped in a choppy consolidation since March 2024, Sajal Dogra, a Wall Street analyst at Rosenblatt Securities, has reaffirmed a buy rating for this company following its strong first-quarter fiscal year 2027 pre-announcement.

Dogra reiterated a ‘Buy’ rating for Super Micro Computer stock, according to a note sent to clients on October 21, 2026, Wednesday. The analyst, however, raised the firm’s 12-month price target for SMCI to $57 from $51, representing an 11.76% change.

With Super Micro Computer stock trading at about $36.28 at press time, Rosenblatt Securities signals a possible 57.11% upside for the next 12 months.

The analysts maintained bullish sentiment for SMCI following its increased sales, catalyzed by a strong demand for artificial intelligence (AI) compute. Ahead of the company’s final fiscal first quarter (Q1) 2027 full financial results, the company announced preliminary net sales guidance of $18.5 billion to $19.5 billion, significantly exceeding its prior target range of $14.5 billion to $15.5 billion. 

The management also raised its gross margin outlook to 12.0%–12.5%, citing accelerating global demand for high-performance AI server infrastructure and a favorable product mix. As such, Super Micro Computer’s full-year fiscal 2027 estimates were revised upward from $68.5 billion in revenue and $5.13 in earnings per share to $80 billion in revenue and $6.40 in earnings per share

SMCI stock price prediction
Earlier on Wednesday, Ruplu Bhattacharya, an analyst at Bank of America Corp. (NYSE: BAC), reiterated a ‘Sell’ rating for SMCI stock. However, Bhattacharya raised the bank’s 12-month price target for Super Micro Computer stock to $38 from $33 for the same reason.

Meanwhile, Quinn Bolton, a market expert at Needham, reaffirmed a ‘Buy’ rating and set the firm’s 12-month price target for SMCI at $46.

Wednesday’s SMCI stock ratings for 12 months. Source: TipRanks
As a result, 16 Wall Street analysts surveyed by TipRanks over the past 3 months had set an average 12-month price target of $40.23.

SMCI stock price prediction for 12 months. Source: TipRanks
Super Micro Computer stock performance 
Over the past 52 weeks, Super Micro Computer stock has ranged between $19.59 and $54.53. At the time of reporting, the company had a market capitalization of $21.33 billion.

Super Micro Computer stock chart on October 21. Source: TradingView
Despite SMCI’s multi-year consolidation, Wall Street analysts are turning more bullish driven by rising demand for AI.

Featured image via Shutterstock

Best Crypto Exchange for Intermediate Traders and Investors

Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

Copy top-performing traders in real time, automatically.

eToro USA is registered with FINRA for securities trading.

30+ million
Users worldwide

Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Join Finbold's newsroom, become a Sales Executive today!

Apply now to join Finbold as a crypto/finance news writer!

SummarySuper Micro Computer, Inc. trades at just 7.3x FY1 non-GAAP earnings versus 17.4x for Dell and 14.4x for HPE.Vera Rubin shipments and expanded rack-scale solutions strengthen SMCI’s position as AI infrastructure becomes increasingly integrated and complex.Mark Long’s CFO appointment strengthens financial leadership, although better controls and capital allocation must still prove governance improvement.AI financing pressure and China export concerns remain risks, but neither currently demonstrates deterioration in SMCI’s underlying demand. JHVEPhoto/iStock Editorial via Getty Images

I turned bullish on Super Micro Computer, Inc. (SMCI) aka Supermicro two months ago following more than $60 billion of orders resolving the demand question. What remained to discuss was how the company could

2.47K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Integrated Open Compute Project (OCP) based portfolio spans rack-scale AI/HPC systems, ORv3 and ORW racks, 48V DC power, networking, and liquid cooling solutions to enable higher-density compute in existing and new data centers Portfolio extends from infrastructure to intelligent operations with DCBBS Coolants, in-rack CDUs, switches, and Supermicro System Management Software Suite for infrastructure management Supermicro DCBBS brings these OCP-based technologies together into integrated rack-scale solutions, simplifying and speeding deployment across compute, power, networking, and cooling for a faster Time-to-Online (TTO) , /PRNewswire/ -- Super Micro Computer, Inc. (NASDAQ: SMCI), an AI, Enterprise, Storage, and 5G/Edge Total IT Solution Provider featuring Data Center Building Block Solutions® (DCBBS), today announced an expanded portfolio of Open Compute Project Accepted™ systems, racks, and rear door heat exchangers (RDHx). Supported by DCBBS, the solutions portfolio can be incorporated into complete end-to-end rack- and cluster-scale deployments.

Open Infrastructure for the Next Wave of AI "The AI boom is redefining how data centers are designed, built, and deployed, and Supermicro is leading this transformation with DCBBS," said Charles Liang, president and CEO of Supermicro. "By integrating compute, networking, power, advanced cooling, software, and services into validated rack-scale solutions, we help customers simplify complexity and accelerate the path from innovation to production. DCBBS enables customers to reduce TTM and TTO by delivering essential AI infrastructure faster and more efficiently."

Supermicro's OCP solutions are now available, click here to learn more.

By leveraging OCP community best practices and DCBBS design and services, data center operators can increase compute density and energy efficiency for AI and HPC workloads based on an open and validated rack-scale foundation—from systems and busbar to rack-level and data center cooling—to bring high density solutions online more efficiently to accelerate Time-to-Market (TTM) and TTO.

"Customers need open, flexible infrastructure that can scale with the rapidly evolving demands of AI while fitting the realities of their data centers," said Dirk Van Slyke, vice president of Marketing, OCP. "By bringing OCP-accepted systems, racks, power and cooling together in validated rack-scale solutions, Supermicro is helping customers simplify integration, maximize facility capacity and efficiency, and accelerate the deployment of production AI infrastructure."

The ORv3 and ORW racks replace per-server power supplies and cables with a centralized 48V DC busbar, allowing customers to optimize their CPU and GPU systems for higher density compute racks. This density is further supported by Supermicro's DLC-2 Direct-to-Chip liquid cooling, which removes heat more efficiently from CPUs, GPUs, and other critical components, while residual heat can be removed from the rack by purpose-built ORv3 RDHx's without requiring additional retrofit of data hall air conditioning systems.

Supermicro RDHx units can be mounted to the rear of ORv3 and ORW racks and remove residual heat from server exhaust before it enters the data hall. The portfolio spans 10 kW to 120 kW of cooling capacity, giving operators a practical way to increase rack density in both new AI facilities and existing data centers. DC-powered models connect to the rack's busbar to reduce cabling, while designs include N+1 redundant fans to ensure uptime and a smart anti-condensation system to prevent moisture damage to other components inside the rack.

Operators can monitor and manage the entire portfolio of DCBBS components, through SuperCloud Composer® using industry-standard protocols. Further, Supermicro's software, such as SuperCloud Director, SuperCloud Automation Assistant, and SuperCloud Developer Console, enables organizations to manage and operationalize all aspects of modern AI factories, enterprise data centers, and NeoCloud infrastructure, through a unified software control solution.

As part of DCBBS portfolio, Supermicro also delivers a comprehensive portfolio of AI networking solutions, ranging from air and liquid-cooled 800G and 1.6T Ethernet switches including next-generation Co-Packaged Optics (CPO) platforms built on Broadcom Tomahawk 6 switching silicon, optimized for EIA or ORv3 racks. The Supermicro Enterprise Advanced SONiC Networking Operating System gives customers the flexibility to select the networking architecture that best meets their performance, power, scalability, and deployment requirements as AI and large-scale data center environments continue to evolve.

Supermicro DCBBS will also include NVIDIA Spectrum-X Ethernet Photonics switch systems, the first co-packaged Ethernet switches with 200Gb/s SerDes. Built on the 102.4 Tb/s NVIDIA Spectrum-6 Ethernet ASIC, Spectrum-X Ethernet Photonics delivers 5x better power efficiency, 10x greater MTBI, 5x longer uptime for AI applications and 1.3x faster time to deployment, compared to pluggable transceiver-based networks. Spectrum-X Ethernet Photonics is in production now.

Portfolio Overview: Supermicro's broad solution portfolio incorporates many community-based standards, which enable faster and more optimized data centers to be brought online faster.

These include:

1 OU FlexTwin™ Solution: A purpose-built rack-scale HPC solution featuring 1 OU 2-node systems powered by the latest Intel® Xeon® 6 or AMD EPYC™ CPUs.

NVIDIA Vera Rubin NVL72: Supermicro's OCP contributed NVIDIA MGX 1.2 Rack Series is engineered exclusively for NVIDIA Vera Rubin NVL72 and NVIDIA Vera CPU platforms with Supermicro's DCBBS DLC-2 liquid-cooling stack support to streamline rack integration to accelerate deployment.

2 OU NVIDIA HGX B300: Built to the OCP ORv3 specification with advanced liquid cooling technology, each compact 8-GPU node fits into 21-inch racks, enabling up to 18 nodes and 144 total GPUs per rack.

2 OU 4-Node Rack-Scale Solution: Optimized architectures unlocking breakthrough performance, efficiency, and rack density for 24/7 agentic AI, featuring up to 45,696 Arm AGI CPUs per rack.

250 kW 4U In-Rack CDU: Features a high cooling capacity and a compact design with up to 250 kW cooling capacity in a compact 4U form factor. It supports high-density AI racks with 45°C warm-water cooling and energy-efficient data center operation.

OCP ORv3 Rack Series: 44OU and 48OU 21-inch racks with integrated busbars and a 5,000 lb. (2,268 kg) certified static load capacity, liquid cooling ready architecture, optimized mechanical design, including MGX 1.2 (Gen 3) racks.

AMD Helios™ Platform Solution: ORW architecture that is fully integrated and purpose-built for high-volume inference, frontier-model training, fine-tuning, as well as sovereign and agentic AI.

ORv3/ Chiller Door: Compatible with ORv3 rack and features 20-100 kW cooling capacity, and Redfish/SNMP/WebUI/Modus control.

ORW Chiller Door: Compatible with ORW rack and features 60 kW cooling capacity and Redfish/SNMP/WebUI/Modus control.

DCBBS Coolants: Built for an OCP-Style liquid-cooling stack customers have two ready-to-use PG coolants for the TCS loop — DLC-1 for standard liquid-cooled racks, and ultra-low-conductivity DLC-2 for specialty cold-plate designs. Both are designed to align/compatible with the OCP PG25 Base Spec, so racks, in-rack CDUs, RDHx, and cold plates can run as one cooling stack.

Rear Door Heat Exchanger (RDHx): Six rack-mounted cooling solutions that remove heat from liquid-cooled racks. Cooling capacities range from 10 kW to 120 kW, with AC and DC power options available.

Power shelves (1 OU) and Battery Backup Units (2 OU) easily fit into OCP racks.

2 OU CPO Switch: Designed for OCP ORv3 racks with 40-60 VDC busbar power and blind-mate QD08 liquid cooling. Delivers 102.4 Tbps across 128 × 800G ports with Supermicro Enterprise Advanced SONiC support.

System Management Software: Supports Redfish APIs and OpenBMC based architecture for remote management. Availability of attestation and PQC algorithms for security compliance with OCP standards.

DCBBS is Supermicro's integrated approach to building and deploying production-ready AI infrastructure—from rack-scale systems to complete AI factories. DCBBS brings together accelerated compute, high-performance networking, storage, power, advanced liquid cooling, system management software, and deployment services in validated solutions, optimized for, and co-designed by, each customer. By combining Supermicro's engineering and manufacturing capabilities with leading technology ecosystems, DCBBS helps organizations reduce deployment complexity and total cost of ownership, while optimizing performance and efficiency.

See these solutions, and more, in Supermicro booth #B4 at the OCP Global Summit, being held October 12 thru October 15, in San Jose, CA.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names, and trademarks are the property of their respective owners.

SOURCE Super Micro Computer, Inc.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) have been assigned an average recommendation of “Hold” from the eighteen ratings firms that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell rating, eleven have issued a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $43.07.

SMCI has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. Mizuho increased their price target on shares of Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a research report on Tuesday, October 6th. The Goldman Sachs Group reissued a “sell” rating and issued a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Barclays set a $39.00 price target on shares of Super Micro Computer and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Finally, Rosenblatt Securities boosted their price objective on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th.

Check Out Our Latest Research Report on SMCI

More Super Micro Computer News
Here are the key news stories impacting Super Micro Computer this week:

Positive Sentiment: Analyst sentiment improved. Zacks upgraded Super Micro to Rank #1, or “Strong Buy,” citing stronger earnings prospects. The upgrade could support near-term buying interest. Super Micro Upgraded to Strong Buy
Positive Sentiment: A sizable order pipeline supports the growth outlook. The company is viewed as having substantial future demand, particularly for AI servers, which may help sustain revenue growth and reinforce the bullish case for the stock. Why Super Micro Stock Is Heading to $60
Neutral Sentiment: Insider transactions drew investor attention. CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares at approximately $45.02, worth about $4.5 million per transaction. The CEO’s sale was reported under a trading plan, which may reduce its signaling value, but the transactions can still weigh on sentiment. CEO Sells Shares Under Trading Plan
Negative Sentiment: A contractor pleaded guilty in a major illegal AI-chip export case. Reports describe a scheme involving approximately $2.5 billion in AI servers or chips. Although the reports identify a contractor rather than alleging that Super Micro itself committed wrongdoing, the association increases regulatory, compliance and reputational concerns for the AI-server manufacturer. Contractor Pleads Guilty in AI Chip Export Scheme

Super Micro Computer Stock Performance
Shares of SMCI stock opened at $39.98 on Tuesday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. Super Micro Computer has a fifty-two week low of $19.48 and a fifty-two week high of $56.60. The stock has a 50 day moving average price of $38.46 and a two-hundred day moving average price of $33.14. The company has a market capitalization of $26.27 billion, a P/E ratio of 12.49, a PEG ratio of 0.81 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI – Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The firm had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. During the same quarter in the prior year, the firm posted $0.31 earnings per share. The business’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Analysts expect that Super Micro Computer will post 3.94 earnings per share for the current year.

Insider Activity
In other news, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the sale, the director directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the firm’s stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the sale, the chief executive officer directly owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 400,000 shares of company stock valued at $16,442,000. Insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On Super Micro Computer
Several institutional investors and hedge funds have recently bought and sold shares of SMCI. Dimensional Fund Advisors LP lifted its position in shares of Super Micro Computer by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock worth $92,872,000 after purchasing an additional 111,388 shares during the period. Assenagon Asset Management S.A. increased its position in shares of Super Micro Computer by 1,770.4% during the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock valued at $63,789,000 after buying an additional 2,058,588 shares during the period. Swiss National Bank raised its stake in Super Micro Computer by 7.6% in the first quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock worth $35,904,000 after buying an additional 111,100 shares in the last quarter. Hsbc Holdings PLC raised its stake in Super Micro Computer by 13.7% in the fourth quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company’s stock worth $33,203,000 after buying an additional 137,180 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in Super Micro Computer by 1.3% in the first quarter. Principal Financial Group Inc. now owns 565,746 shares of the company’s stock worth $12,882,000 after buying an additional 7,373 shares in the last quarter. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Company Profile
(Get Free Report)

Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.

Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.

See Also

Five stocks we like better than Super Micro Computer
Salesforce Just Got a Rare Double Upgrade—What Changed?
OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors
China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit
3 REITs That May Win in a Higher Interest Rate Environment

Receive News & Ratings for Super Micro Computer Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Super Micro Computer and related companies with MarketBeat.com's FREE daily email newsletter.

Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Charles Liang also recently made the following trade(s):

On Thursday, September 3rd, Charles Liang sold 100,000 shares of Super Micro Computer stock. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Super Micro Computer Trading Down 2.2% NASDAQ:SMCI opened at $41.85 on Friday. The company has a market cap of $27.49 billion, a P/E ratio of 13.08, a P/E/G ratio of 0.81 and a beta of 2.02. The stock’s fifty day moving average price is $38.23 and its two-hundred day moving average price is $32.93. Super Micro Computer, Inc. has a 1 year low of $19.48 and a 1 year high of $58.51. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07.

Super Micro Computer (NASDAQ:SMCI – Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. The firm had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The business’s revenue for the quarter was up 93.2% on a year-over-year basis. During the same period last year, the company earned $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, analysts expect that Super Micro Computer, Inc. will post 3.94 EPS for the current year. Wall Street Analyst Weigh In A number of analysts recently issued reports on the company. Zacks Research raised Super Micro Computer from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 20th. Stifel Nicolaus set a $42.00 target price on Super Micro Computer in a report on Wednesday, August 12th. Wedbush lifted their target price on Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. Citigroup reiterated a “neutral” rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a research report on Thursday. Finally, Northland Securities set a $36.00 price target on shares of Super Micro Computer in a report on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $43.07.

Read Our Latest Analysis on SMCI

More Super Micro Computer News Here are the key news stories impacting Super Micro Computer this week:

Positive Sentiment: Supermicro added Shesha Krishnapura, a 35-year Intel veteran with high-performance computing and AI infrastructure experience, as an independent director. The appointment may strengthen the company’s strategic and operational expertise as it expands in AI data-center infrastructure. Supermicro Appoints Shesha Krishnapura to Board of Directors Positive Sentiment: Super Micro enters fiscal 2027 with a reported order pipeline exceeding $60 billion, supported by demand for AI systems and enterprise infrastructure. If converted into revenue, the pipeline could support continued growth. Can Super Micro Computer Sustain Its AI Capex Momentum in 2027? Positive Sentiment: Zacks added SMCI to its Rank #1 “Strong Buy” and value-stock lists, providing a favorable near-term analyst signal. Zacks Strong Buy Coverage Neutral Sentiment: A report stated that short interest totaled zero shares, implying no days-to-cover. This figure conflicts with the description of a sharp increase in short interest and may reflect incomplete or inaccurate data, limiting its usefulness as a trading signal. Negative Sentiment: CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares at an average of $45.02, reducing their direct holdings by 22.86%. The sales were made under pre-arranged Rule 10b5-1 plans, which reduces their significance but may still weigh on sentiment. Negative Sentiment: Investors are questioning whether SMCI’s roughly 11-fold five-year gain is supported by long-term cash generation. High-volume GPU systems typically carry lower margins, raising concerns that rapid sales growth may not translate proportionally into profits. One Unsettled Question Sits Under Super Micro Computer Stock Negative Sentiment: Recent gains in server stocks have begun to unwind as investors take profits, adding to short-term selling pressure across the sector. Super Micro Drops as Profit Taking Unwinds Server Rally Institutional Trading of Super Micro Computer Large investors have recently made changes to their positions in the stock. Sound Income Strategies LLC purchased a new stake in shares of Super Micro Computer in the 3rd quarter worth approximately $983,000. GAMMA Investing LLC boosted its stake in shares of Super Micro Computer by 65.0% during the third quarter. GAMMA Investing LLC now owns 17,657 shares of the company’s stock valued at $725,000 after purchasing an additional 6,953 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Super Micro Computer by 137.8% during the third quarter. Farther Finance Advisors LLC now owns 19,357 shares of the company’s stock valued at $795,000 after purchasing an additional 11,217 shares in the last quarter. MassMutual Private Wealth & Trust FSB boosted its stake in shares of Super Micro Computer by 117.4% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 2,187 shares of the company’s stock valued at $90,000 after purchasing an additional 1,181 shares in the last quarter. Finally, Versant Capital Management Inc increased its holdings in Super Micro Computer by 321.7% during the third quarter. Versant Capital Management Inc now owns 2,391 shares of the company’s stock valued at $98,000 after buying an additional 1,824 shares during the period. 84.06% of the stock is owned by hedge funds and other institutional investors.

(Get Free Report)

Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.

Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.

Featured Stories Five stocks we like better than Super Micro Computer 3 Unique ETFs With Strong Momentum for the End of the Year 3 Beaten-Down Biotech Stocks With Triple-Digit Upside and Big Catalysts Ahead Schneider Just Paid Up for PTC—Is the SaaSpocalypse Overdone? Delta Air Lines Faces a Fuel Crisis—But There’s a Silver Lining Receive News & Ratings for Super Micro Computer Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Super Micro Computer and related companies with MarketBeat.com's FREE daily email newsletter.

Shares of Super Micro Computer
SMCI +4.25% 85

climbed about 3% in Friday morning trading as investors focused on the server maker's expanding role in AI data-center deployments, following its latest rollout of Nvidia-powered rack systems.

Supermicro said it has started shipping Vera Rubin NVL72 systems through its Data Center Building Block Solutions platform. The racks pair 72 Rubin GPUs with 36 Vera CPUs and use direct liquid cooling designed for high-density computing environments.

The company's broader order pipeline is also drawing attention. Supermicro received more than $60 billion of orders in fiscal fourth quarter 2026 and expects fiscal 2027 revenue of $65 billion to $72 billion, according to Zacks Research.

Supermicro said its infrastructure can be deployed from five-megawatt projects to data centers operating at gigawatt scale. Its manufacturing network is being expanded across the United States, Taiwan, Malaysia and the Netherlands, with monthly capacity expected to exceed 6,000 racks.

Shares remain volatile, with the stock recently trading near $43.03. Investors are also watching margins and cash-flow conversion as the company expands to meet AI infrastructure demand.

Check the Warning Signs for

SMCI

now!

Key Takeaways Super Micro Computer's fiscal 2026 revenues jumped 78% to $39.1 billion as AI demand drove. SMCI received more than $60 billion in fourth-quarter orders, pushing its backlog to record levels.Super Micro Computer expects fiscal 2027 revenues of $65 billion to $72 billion on stronger AI demand. Super Micro Computer (SMCI - Free Report) is one of the few AI infrastructure companies that enable AI data centers, AI Fabs, hyperscalers and enterprises for rapid adoption of new processor and accelerator platforms. Super Micro Computer is shipping volume systems based on NVIDIA’s GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro platforms while preparing Vera Rubin systems. With AMD, it launched the Helios product line and MI450 Total Solution, alongside MI350 and MI355X systems.

AI and IT infrastructure business remains the primary driver of SMCI’s growth trajectory. SMCI’s fiscal 2026 revenues increased 78% year over year to $39.1 billion, while the company received more than $60 billion in new orders during the fourth quarter, taking its backlog to record levels entering fiscal 2027. SMCI expects the stronger order book to support continued expansion as customers accelerate AI infrastructure deployments.

SMCI’s AI solutions represented approximately 60% of fourth-quarter fiscal 2026 revenues. Enterprise and channel revenues also strengthened significantly, reaching $5.6 billion or 50% of quarterly sales, as customers upgraded computing, storage and networking infrastructure. SMCI expects AI-related solutions to account for more than 80% of revenues based on the current backlog.

To support demand, Supermicro is expanding manufacturing capacity across the United States, Taiwan, Malaysia and the Netherlands. Its manufacturing capability is expected to exceed 6,000 racks per month, including more than 3,000 direct-liquid-cooled racks, with support for high-density 250-kilowatt platforms. For fiscal 2027, management expects revenues between $65 billion and $72 billion, while first-quarter revenues are projected to be in the range of $14.5-$15.5 billion.

How Competitors Fare Against SMCISMCI is at a crossroads with major players like Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) . Hewlett Packard Enterprise is providing enterprises with an integrated AI infrastructure portfolio spanning hardware, software and cloud management to scale generative AI, agentic AI and high-performance computing workloads.

HPE combines compute, storage, networking and the GreenLake platform with NVIDIA's GPUs, CPUs, networking technologies and AI Enterprise software. The integrated offering allows enterprises to build and manage AI environments through a unified platform.

Dell Technologies, meanwhile, is pursuing a broader ecosystem strategy through its Dell AI Factory. Rather than focusing solely on servers, Dell is expanding across compute, storage, networking, automation and software. Dell recently introduced PowerEdge R9822 and M9822 servers.

SMCI’s Price Performance, Valuation and EstimatesShares of Super Micro Computer have gained 41.5% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 248.2%.

SMCI YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, SMCI is trading at a discount at a forward 12 Month P/S multiple of 0.37X compared with the industry’s P/S multiple of 3.22X.

SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 22% and 19%, respectively. Estimates for fiscal 2026 and 2027 earnings have been revised upward in the past 60 days.

Image Source: Zacks Investment Research

Super Micro Computer currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) fell 3.1% during trading on Friday . The stock traded as low as $38.32 and last traded at $39.09. Approximately 47,738,304 shares changed hands during trading, an increase of 7% from the average session volume of 44,633,785 shares. The stock had previously closed at $40.35.

Key Stories Impacting Super Micro Computer Here are the key news stories impacting Super Micro Computer this week:

Positive Sentiment: Super Micro has beaten earnings estimates in three of the past four quarters, while its backlog reportedly reached a record level. A valuation metric highlighted by 24/7 Wall St. is at a level that has historically preceded significant repricing; the article argues that meeting certain growth conditions could support roughly 58% additional upside. The SMCI Number I’m Watching Could Decide Where the Stock Goes Next Positive Sentiment: Goldman Sachs’ forecast for aggressive expansion in the AI-server total addressable market through the end of the decade helped lift Super Micro alongside Hewlett Packard Enterprise and Dell. The broader sector rally and renewed demand for AI infrastructure improved near-term momentum for SMCI. SMCI Stock Rallies as Goldman Sachs Flags Expanding Addressable Market Positive Sentiment: Investors also responded positively to a wider rebound in high-beta technology stocks following the Federal Reserve’s latest interest-rate decision, with AI server makers among the leading beneficiaries. Super Micro Computer Stock Climbs Thursday: What’s Going On? Neutral Sentiment: Despite expectations for another substantial revenue increase, some investors appear unwilling to fully credit the forecasts, suggesting that execution, margins, and the sustainability of AI-server demand remain important tests for the stock. Super Micro Stock Slips as Investors Look Past Massive Growth Estimates Negative Sentiment: Goldman Sachs continues to maintain a Sell rating on Super Micro, limiting the impact of its otherwise favorable industry outlook and reinforcing concerns about company-specific risks. Goldman Sachs Sticks to Its Sell Rating for Super Micro Computer Negative Sentiment: Kuehn Law is investigating whether Super Micro officers and directors breached fiduciary duties. The announcement does not establish wrongdoing, but it adds legal and governance overhang that may weigh on investor confidence. Kuehn Law Encourages Investors of Super Micro Computer Investors to Contact Law Firm Wall Street Analyst Weigh In Several research analysts have weighed in on SMCI shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research note on Wednesday, June 24th. Bank of America reissued an “underperform” rating on shares of Super Micro Computer in a research note on Wednesday, August 12th. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a research note on Wednesday, July 22nd. Zacks Research upgraded Super Micro Computer from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 20th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $46.00 price objective on shares of Super Micro Computer in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $42.13.

Read Our Latest Analysis on Super Micro Computer Super Micro Computer Price Performance The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65. The company has a market capitalization of $25.68 billion, a P/E ratio of 12.22, a P/E/G ratio of 0.74 and a beta of 2.00. The company’s 50-day simple moving average is $33.78 and its 200 day simple moving average is $31.72.

Super Micro Computer (NASDAQ:SMCI – Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. The business had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. Super Micro Computer’s revenue for the quarter was up 93.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, sell-side analysts expect that Super Micro Computer, Inc. will post 4.04 earnings per share for the current fiscal year.

Insider Buying and Selling In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the transaction, the director owned 537,506 shares in the company, valued at $19,989,848.14. This trade represents a 15.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the transaction, the chief executive officer directly owned 537,506 shares in the company, valued at approximately $19,989,848.14. This represents a 15.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.10% of the stock is currently owned by company insiders.

Institutional Trading of Super Micro Computer Several large investors have recently modified their holdings of SMCI. MCF Advisors LLC lifted its position in Super Micro Computer by 9.6% during the 4th quarter. MCF Advisors LLC now owns 3,696 shares of the company’s stock worth $108,000 after acquiring an additional 325 shares during the last quarter. World Equity Group Inc. grew its position in shares of Super Micro Computer by 3.8% in the first quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock valued at $225,000 after purchasing an additional 362 shares during the last quarter. Gulf International Bank UK Ltd increased its stake in shares of Super Micro Computer by 1.7% in the fourth quarter. Gulf International Bank UK Ltd now owns 26,748 shares of the company’s stock worth $783,000 after purchasing an additional 455 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in shares of Super Micro Computer by 0.5% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company’s stock worth $2,669,000 after purchasing an additional 564 shares during the period. Finally, Focused Wealth Management Inc lifted its position in shares of Super Micro Computer by 3.3% during the 1st quarter. Focused Wealth Management Inc now owns 21,245 shares of the company’s stock worth $484,000 after purchasing an additional 677 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

Super Micro Computer Company Profile (Get Free Report)

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.

Further Reading Five stocks we like better than Super Micro Computer Lennar’s Earnings Miss May Be Sending a Bigger Warning About U.S. Housing Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits These 3 Agentic AI Stocks Have More Than Hype Behind Their Growth Stories Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate Hike Receive News & Ratings for Super Micro Computer Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Super Micro Computer and related companies with MarketBeat.com's FREE daily email newsletter.

powered by

SMCI buy

Buy Super Micro Computer (SMCI). Goldman’s view that AI servers’ TAM expands aggressively into 2030 plus SMCI’s ~40% share in the neocloud AI server segment supports continued demand. The stock also just reclaimed its 20-day moving average, signaling momentum aligned with fundamentals. Capacity ramp (toward 6,000 racks/month) and a large backlog with resilient ~17.5% gross margins make the near-term earnings path credible.

Key Risk: AI server demand slows faster than capacity ramps, forcing margin compression and backlog conversion delays.

SMCI sell/avoid

Sell or avoid SMCI at current levels. The article notes Wall Street consensus is only Hold with a mean price target under ~$42, meaning limited upside after a ~70% run from the July low. If the market already priced the TAM upgrade, any execution hiccup (ramp, mix, or margins) will hit the stock harder than the fundamentals can offset.

Key Risk: Guidance/margins disappoint versus expectations, and the stock rerates downward after the momentum-driven rally.

Super Micro Computer SMCI stock is pushing 9% higher on Thursday after Goldman Sachs analysts said the AI server total addressable market (TAM) will expand rather aggressively through the end of this decade.

As investors cheered that bullish forecast, SMCI ripped through its 20-day moving average (MA) this morning, indicating the upward momentum could sustain in the near-term.

Note that Supermicro shares have been in a sharp uptrend in recent weeks, currently up an exciting 70% versus its July low.

In a comprehensive hardware and infrastructure research report Goldman Sachs published earlier this week, the firm said the global server market will reach a whopping $1.5 trillion by 2030.

More importantly, its experts believe AI servers specifically will account for about $1.3 trillion of that demand.

The report is largely bullish for SMCI shares given the company currently commands an estimated 40% market share in the rapidly expanding neocloud AI server segment.  

Supermicro’s Building Block Solutions modular architecture allows it to integrate next-generation silicon – such as Nvidia’s Blackwell and AMD's Instinct accelerators – and bring “customized” AI systems more efficiently to market.

Supermicro shares are rallying also because reports emerged today that Apple is developing its own M8 Ultra chip-based AI inference servers targeting enterprise and government customers.

While custom, in-house silicon initiatives could eventually present a subtle long-term competitive dynamic for traditional server manufacturers, investors are treating it as a massive net positive for now.

Why? Because Apple’s direct push into specialized, high-density server manufacturing underscores the relentless, non-negotiable enterprise demand for specialized AI infrastructure.

For market participants, the news serves as a powerful validation that corporate, public sector, and big tech capital expenditures will continue surging well into the second half of the decade.

Beyond macro forecasts, several immediate operational and market factors are accelerating Super Micro Computer’s upward momentum today.

These include the firm’s aggressive capacity expansion hitting key operational milestones, scaling toward a production target of 6,000 server racks per month – equally split between air-cooled and advanced direct liquid-cooled (DLC) solutions.

In short, given SMCI's massive $60 billion order backlog, its guidance for at least $65 billion in sales in fiscal 2027, and gross margins remaining resilient at 17.5%, Goldman Sachs' industry backdrop emphasizes that Supermicro remains a direct beneficiary of unprecedented enterprise AI buildouts.

That said, following its recent rally, Wall Street analysts are not particularly bullish on SMCI stock for the remainder of 2026.

According to The Wall Street Journal, the consensus rating on Supermicro sits at Hold only – with the mean price target of less than $42 indicating a lack of further upside from current levels.

A Wall Street downgrade landed on Hewlett Packard Enterprise after a 137% year-to-date run, and it took Dell and Super Micro down with it. Now the question is whether AI hardware demand can hold the group together or whether the…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Hewlett Packard Enterprise (NYSE:HPE | HPE Price Prediction) stock is down 9% to $56.47 in early trading Monday after a Wall Street downgrade landed on top of a triple-digit run for the artificial intelligence (AI) server maker. The move places Hewlett Packard Enterprise stock at the front of a sector-wide unwind in AI hardware, and it’s coming from the name that had the most to give back.

Dell Technologies (NYSE:DELL) stock is declining 5% to $539.57 in sympathy. Meanwhile, Super Micro Computer (NASDAQ:SMCI) stock is down 8% to $37.03, hit hardest of the three peers as the selling reaches every AI infrastructure name in the group.

The iShares U.S. Technology ETF (NYSEARCA:IYW) is down 2%, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is slipping 0.53%. Technology is falling harder than the broad market, and these three server names are falling several times harder than technology, which places the selling inside the AI hardware trade rather than across the wider tape.

Downgrade Lands on a Triple-Digit Run Hewlett Packard Enterprise stock had climbed 137% year to date (YTD) heading into Monday’s session. The downgrade note itself sits behind a paywall, so the research firm, the rating action and the price target aren’t disclosed, and the catalyst is being described only as a downgrade following this year’s advance.

Hewlett Packard Enterprise’s fiscal Q3 2026 report on September 2 set up that advance. The company posted non-GAAP EPS of $1.11 versus $0.9261 expected and revenue of $12.213 billion, up 32.7% year over year (YoY), with networking revenue of $2.893 billion and server revenue of $6.766 billion. CEO Antonio Neri stated, “AI is becoming a multi-year growth driver for HPE, and our differentiated portfolio positions us to capture that opportunity at scale.”

Hewlett Packard Enterprise also raised its fiscal 2026 non-GAAP EPS guide to $3.75 to $3.85 and set a fiscal 2027 free cash flow floor of at least $5 billion. The Juniper Networks integration is running ahead of plan, with cost synergies tracking to a $600 million annual run rate savings target by the end of FY28.

AI Peers Slide as Pacing Debate Meets a Rate Meeting Dell reported fiscal Q2 2027 on September 1 with non-GAAP EPS of $7.04 and revenue of $46.97 billion, up 57.8% year over year, alongside $60.9 billion in AI server orders and a $95 billion ending backlog. Dell stock is up 333% year to date, the largest cushion in the group and the source of today’s outsized reaction in the shares.

Super Micro reported fourth-quarter fiscal 2026 on August 11 with non-GAAP EPS of $1.70 and revenue of $11.12 billion, up 93.2% year over year, and CEO Charles Liang cited more than $60 billion in new orders driving a record backlog into fiscal 2027. Super Micro stock is up 27% year to date, a fraction of what Dell and Hewlett Packard Enterprise carry into today, yet Super Micro shares are falling nearly as hard, which suggests the selling has reached the entire server group.

Over the weekend, Anthropic CEO Dario Amodei called on frontier AI companies to slow the pace of model capability development, and OpenAI CEO Sam Altman backed him. Anthropic and OpenAI are privately held. The comments landed on an AI-linked tape already primed for a pullback, and the Federal Reserve’s next policy meeting arrives this week.

Oracle (NYSE:ORCL) reported remaining performance obligations of $664 billion for its most recent fiscal quarter, a contracted backlog that reads through to the servers, networking and storage needed to fulfill it (we pulled together seven of the non-chipmaker suppliers riding this same buildout in a free report you can grab here). The open question for the AI hardware group is financing rather than demand, and Oracle’s book underlines how large the demand side has become.

What to Watch Next The bull case for Hewlett Packard Enterprise is that its own reported orders and backlog have kept expanding and that Oracle’s contracted work says the hardware demand behind them hasn’t gone anywhere. The bear case for Hewlett Packard Enterprise is that a stock carrying a gain that large needs demand to keep beating expectations, and both the pacing debate and this week’s Federal Reserve meeting hang over the financing behind those orders.

Hewlett Packard Enterprise stock trades at a forward P/E ratio of 13.55x on the raised guide, with the Street’s average price target sitting at $67.43. That gap between today’s price and the target is where the bull-versus-bear debate for Hewlett Packard Enterprise stock now lives after a Wall Street note pulled one of the more visible bulls off the table.

Investors can watch for whether Hewlett Packard Enterprise stock stabilizes above its 50-day moving average of $51.11 into the close, and whether the AI hardware group finds a bid once the Fed decision arrives. Given how quickly a triple-digit run can unwind, traders should size their exposure to Hewlett Packard Enterprise stock for the volatility they’re seeing rather than the run they missed.

Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Super Micro Computer, Inc. ("Super Micro" or the "Company") (NasdaqGS: SMCI).

On March 19, 2026, post-market, the U.S. Department of Justice announced the unsealing of an indictment against three individuals associated with the Company, Yih-Shyan Liaw (the Company's co-founder, director, and Senior Vice President of Business Development), Ruei-Tsang Chang ("a general manager in the [Super Micro's] Taiwan office)," and Ting-Wei Sun ("a third-party broker and fixer"), for engaging in a "scheme to divert massive quantities of servers housing U.S. artificial intelligence technology to customers in China" violating U.S. export control laws, in order to "drive sales and generate revenues in violation of U.S. law" and enabled the sale of "approximately $2.5 billion worth of servers" between 2024 and 2025.

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period in violation of federal securities laws, which remains ongoing.

KSF's investigation is focusing on whether Super Micro's officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws. 

If you have information that would assist KSF in its investigation, or have been a long-term holder of Super Micro shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-538-3608 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://ksfcounsel.com/cases/nasdaqgs-smci/ to learn more.

About Kahn Swick & Foti, LLC

KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.

TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services

To learn more about KSF, you may visit www.ksfcounsel.com.

Contact:

Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
[email protected]
1-833-538-3606
1100 Poydras St., Suite 960
New Orleans, LA 70163

CONNECT WITH US: Facebook || Instagram || YouTube || TikTok || LinkedIn

SOURCE Kahn Swick & Foti, LLC

Supermicro's gross margin just shattered expectations, sending shares surging, but management quietly buried a number in the earnings call that changes everything investors think they just bought.

Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) closed most recently at $39.59, up 25.8% over one month and 27.9% year to date, yet still 1.1% lower over the trailing year. The rally traces to a fiscal fourth-quarter 2026 report in which non-GAAP gross margin blew past guidance. Did investors buy a structural margin reset or a one-quarter timing artifact? As it turns out, management answered that question on the earnings call.

What the Market Thinks It Bought The bull case is genuine. Non-GAAP EPS came in at $1.70 against a $0.9575 estimate, revenue grew 93.16% year over year, and CEO Charles Liang cited “more than $60 billion in new orders, and booked record backlog entering fiscal 2027.” Full fiscal 2027 revenue guidance is $65.0 billion to $72.0 billion. Some of last week’s strength was sector-driven; TradingView, on September 4, 2026, headlined the story “Supermicro’s Revenue Boom Just Ran Into a Profit Test.”

What the Margin Number Actually Was Reported non-GAAP gross margin was 17.6% versus guidance of 8.2% to 8.4%, a 750 basis point sequential jump. CFO David Weigand said favorable mix “contributed approximately 75% of the gross margin improvement,” with the remainder attributable to lower tariff costs and lower inventory reserves, which he called a “non-recurring event.” The mix itself was inflated by “the deferral of several contracts from Q4 fiscal year 26 to Q1 fiscal year 27.” Lower-margin revenue slipping out lifts the percentage without improving the business. Liang said, “This margin expansion mainly came from our strategy focused on balancing customer mix and product mix while having a one-time positive contribution for the quarter.” Revenue landed near the low end of the $11 billion to $12.5 billion range on customer readiness delays. Miss on top line, beat on margin, same cause.

Guidance Nobody Talked About Management guided current-quarter non-GAAP gross margin to 10.4% to 10.8%, well below the reported 17.6%. A quiet period begins at the close of business on Friday, September 11, 2026, so this number stands.

Parts of the Bull Case That Survive Customer diversification is genuine. David Weigand noted nine customers with revenues greater than $1 billion each in fiscal year 2026, versus four in fiscal year 2025. Full-year revenue reached $39.06 billion (+77.8% year over year). (That kind of concentration in AI server buildouts is why we keep pointing readers to the power, cooling, and networking suppliers behind the data centers in a free report.)

Offsetting this is that fiscal 2026 operating cash flow was negative $6.81 billion, closing inventory rose to $12.9 billion, and the cash conversion cycle (days between paying suppliers and collecting from customers) lengthened materially. A company can grow revenue while consuming cash when it prepays inventory faster than customers pay invoices.

Dilution Nobody Prices Supermicro raised $5.6 billion in public equity, including $4.2 billion in mandatory convertible preferred (shares that automatically convert to common). The guided non-GAAP diluted share count is 761 million. David Weigand said EPS is now computed using the two-class method, allocating a portion of net income to participating convertible preferred shares.

What Has to Go Right Gross margin must hold against the new 10.4% to 10.8% guidance. The deferred contracts must land without dragging margin lower when they do. The $65.0 billion to $72.0 billion revenue range must survive a quarter of contact, and growth must start generating operating cash. This thesis will be disproved by any quarter in which revenue grows and gross margin lands at or below the full prior-year level, or any walk-back of the forward revenue range.

Committed View The market bought a margin figure that management, in its own words and its own next-quarter guide, has already told investors will not repeat. Though the growth story is intact and the order book is a genuine asset, the profitability step-up appears transitory.

Contact [email protected] for any questions or corrections.

The AI infrastructure space features many companies that are growing at a dramatic clip. However, growth alone is often not enough to satisfy many investors. Some of the fastest-growing names in this space also have among the most investors betting against them.

Three AI companies stick out, with investors selling short a huge percentage of their public floats, indicating significant pessimism among many market participants. However, these companies also have avenues to potentially prove short sellers wrong as they look to improve profitability metrics.

Get Super Micro Computer alerts:

Super Micro Computer: Data Center Building Blocks Solution Aims to Improve Margin ProfileSuper Micro Computer Today

SMCI

Super Micro Computer

$40.26 +0.67 (+1.69%)

As of 09/8/2026 04:00 PM Eastern

$19.48▼

$58.7812.58

$42.13

First up is AI server giant Super Micro Computer NASDAQ: SMCI. Investors have sold approximately 18% of its floated shares short, making Super Micro one of the most-shorted stocks in the market.

There are multiple reasons that investors may be betting on this name to fall. First off, shares are up over 30% in one month, creating more downside potential that shorts can profit from. Additionally, the company’s growth is rapid, but its profitability profile is a real concern. Analysts expect sales to grow by nearly 200% year-over-year (YOY) next quarter to almost $15 billion, but forecast a gross margin below 11%. This very low margin makes it difficult for the company to convert much of its sales into earnings.

However, one key offering that could potentially help Super Micro improve its profitability over time is its data center building blocks solution (DCBBS). Super Micro describes DCBBS as a turnkey ecosystem that allows customers to build AI data centers in quarters rather than years. This comes as it integrates a wide variety of key data center components, from processors to networking to cooling systems and software.

With this, it will be important to monitor mentions of DCBBS’s revenue contribution and DCBBS deal signings. Notably, the company says that the platform will soon contribute significant net income, another factor to watch.

CoreWeave Adds Record Active Power, But Profits Are Under PressureCoreWeave Today

$99.83 +10.47 (+11.72%)

As of 09/8/2026 04:00 PM Eastern

$60.55▼

$153.20$141.90

CoreWeave NASDAQ: CRWV also finds itself among the list of AI stocks with very high short interest. Investors have sold nearly 17% of the company’s floated shares short. Not unlike Super Micro, the company is posting blistering growth but has profitability issues.

Sales increased by 112.5% YOY last quarter to $2.575 billion, but earnings moved in the opposite direction. The company’s loss per share greatly increased to -$1.14, and free cash flow fell much further into negative territory, coming in at -$5.74 billion. Additionally, CoreWeave’s long-term debt rose by more than 270% YOY to $27.56 billion.

For CoreWeave, it is critical that the company closes the gap between its revenue and cash flow and its capital expenditures. One factor that can help with this is bringing online its in-progress data centers as quickly as possible. This can maximize the revenue CoreWeave generates from each facility over time to offset costs.

Notably, the company added 500 megawatts of actively powered data centers last quarter, more than any quarter in its history. It now has 1.5 gigawatts of actively powered data centers, with the company targeting eight gigawatts by 2030. Investors should monitor CoreWeave’s active power additions each quarter and its ability to increase its overall active power consistently over time.

Expenditures Set to Balloon as IREN Eyes Huge Jump in Operating Run-RateIREN Today

$46.93 +2.25 (+5.04%)

As of 09/8/2026 04:00 PM Eastern

$27.05▼

$76.87$81.57

IREN NASDAQ: IREN operates a somewhat similar business model to CoreWeave, falling in the neocloud category. However, the company has its roots in bitcoin mining and has since converted much of this infrastructure to serve the AI market. There is clearly a large cohort of investors who are skeptical of the company’s future, with nearly 28% of its floated shares sold short.

Notably, IREN has a $9.7 billion contract with Microsoft NASDAQ: MSFT. However, turning that deal into actual sales comes with execution risk and massive costs. To support this and other deployments, IREN expects to spend $25-30 billion on capital expenditures between now and Q2 2027. These figures tower over the company’s small revenue base today.

Sales came in at just $137 million last quarter, and its operating annualized run rate (ARR) revenue is $1 billion. However, the company expects to make significant progress on this front soon, targeting an increase in operating ARR to $4 billion next quarter. This comes as IREN plans to bring a large amount of data center capacity online. This would greatly increase the company’s revenue base, improving profits over time, after it posted a net loss of $684 million last quarter.

Whether IREN actually delivers on this figure will be among the most critical aspects to watch in its next earnings report. From there, the company will need to continue making strong progress in adding more capacity to maximize its data center revenue.

Short Sellers Are Targeting Growth, But Execution Will Decide the TradeIREN’s percentage of floated shares sold short is by far the highest in this group, indicating particularly high bearish sentiment among short sellers. Interestingly, Wall Street analysts are showing the most optimism about IREN among the group. The MarketBeat consensus price target of $81.57 implies more than 80% upside.

Still, the broader takeaway is not just about IREN. Super Micro, CoreWeave, and IREN all show the same tension running through the AI infrastructure trade: demand is enormous, but investors want clearer evidence of margin expansion, cash flow improvement and disciplined capital spending.

Short sellers may be focused on the risks, but these companies still have ways to challenge the bear case. For Super Micro, that means proving DCBBS can support profitability. For CoreWeave, it means turning capacity additions into better cash flow. For IREN, it means showing that contracted AI revenue can scale fast enough to justify the spending required to support it.

Should You Invest $1,000 in Super Micro Computer Right Now?Before you consider Super Micro Computer, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Super Micro Computer wasn't on the list.

While Super Micro Computer currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Super Micro has outpaced the S&P 500 this year, yet its peers left it far behind, and a key cash flow problem explains why the $50 price target remains out of reach for now.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

AI infrastructure was the dominant equity story of 2026, and the leaderboard inside that theme separates the three biggest server names sharply. For the bigger-picture context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 13% year to date through Friday’s close while the iShares U.S. Technology ETF (NYSE ARCA:IYW) has rallied 26% in 2026 so far. Amid that backdrop, three AI-server providers have posted very different results.

Notably, Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock closed Friday at $39.59, up 35% year to date. Dell Technologies (NYSE:DELL) stock ended at $524.14, up 320% year to date. Meanwhile, Hewlett Packard Enterprise (NYSE:HPE) stock finished at $52, up 118% year to date.

That ranking reads as a market verdict on margin quality and cash generation, since AI-server demand itself remains historically strong across all three names. The $50 threshold in the title sits above where sell-side analysts currently see fair value, and the rating mix leans toward hold rather than buy, though the same buildout is lifting a wider set of suppliers we broke down in a free report on the AI infrastructure names beyond the chipmakers.

What Drove Super Micro’s Year Super Micro Computer did most of its year’s work in a single August window. The company reported Q4 FY2026 non-GAAP EPS of $1.70 against a $0.9575 consensus, on revenue of $11.12 billion that grew 93.2% year over year. Non-GAAP gross margin jumped to 17.6% from 10.1% the prior quarter.

CEO Charles Liang disclosed more than $60 billion in new orders during the quarter and record backlog entering fiscal 2027. Super Micro’s management guided its FY2027 revenue to a range of $65 billion to $72 billion, well above FY2026’s $39.1 billion. That combination of margin recovery and forward book is what pulled SMCI stock off of its April low of $27.

Why the Diversified Peers Ran Further Dell Technologies is the standout of the group. Dell reported Q2 FY2027 non-GAAP EPS of $7.04 on revenue of $46.97 billion, booked $60.9 billion in AI orders during the quarter, and lifted full-year revenue guidance to $192 billion with AI-server revenue guided to $74 billion. The company also produced $2.2 billion in operating cash flow and returned a record $4.3 billion to shareholders in the quarter.

Hewlett Packard Enterprise reported Q3 FY2026 non-GAAP EPS of $1.11 on revenue of $12.21 billion, with networking revenue up 74.9% year over year. Furthermore, HPE raised its FY2026 non-GAAP EPS guidance to $3.75 to $3.85 and framed FY2027 free cash flow at a minimum of $5 billion. Both peers turned AI demand into cash this year, while Super Micro Computer’s FY2026 operating cash flow came in at negative $6.8 billion on a $12.9 billion inventory build.

What Would Push SMCI to $50 Getting SMCI stock from $39.59 to $50 asks the market to pay a higher multiple than sell-side analysts currently model. The path runs through the fiscal 2027 report cycle. Super Micro’s Q1 FY2027 guidance calls for revenue of $14.5 billion to $15.5 billion and non-GAAP EPS of $1.01 to $1.10, and the company needs to land in the upper half of both ranges while defending the Q4 gross-margin step-up.

Cash is the second lever. Super Micro Computer’s fiscal 2026 operating cash flow of negative $6.8 billion is the counterweight to the margin story, and CFO David Weigand pointed to improved backlog terms as the mechanism for repairing it. Stronger DCBBS mix, cleaner working capital, and closure on the board’s independent review of export-control-related transactions would each support a rerating toward the $50 mark.

What to Watch Super Micro’s Q1 FY2027 report is the next real test, and it arrives with a guide that leaves little room to disappoint on either revenue or gross margin. Investors sizing their exposure to SMCI stock can watch for a repeat of the Q4 gross-margin step-up and for the first signs that operating cash flow is turning.

Investors can check for updates on the board’s independent review, which remains an open item and a clear overhang. Position-sizing matters here given SMCI stock’s beta near 2 and a 52-week range that runs from $19.48 to $58.78. Keeping one’s Super Micro Computer share positions modest is a reasonable approach until the cash-conversion cycle improves.

Contact [email protected] for any questions or corrections.

Revenue jumped 78% to $39.1 billion last year, but investors are still waiting for more consistent margins. Summary

Supermicro expects $65 billion to $72 billion in fiscal 2027 sales

Super Micro Computer Inc. (SMCI, Financials) is not lacking demand. The AI server division recorded $39.1 billion in sales in fiscal 2026, up from $22 billion a year earlier, and set a record backlog at the start of the next fiscal year after securing more than $60 billion in new orders.

Now the tough part: translating all that growth into more consistent earnings. Supermicro's full year gross margin was marginally lower at 10.8% versus 11.1%, a small decline that is more significant when sales is growing this quickly.

The latest quarter was, nevertheless, rather encouraging. Fourth quarter revenue was more than $11.1 billion and adjusted earnings of $1.70 per share. Gross margin increased to 17.5%

It gives investors something to look at. Supermicro is forecasting revenues between $65 billion and $72 billion in fiscal 2027. At that size, even a small margin rise can result into a big profit increase.

But the opposite is true Aggressive pricing and client mix will continue to squeeze profitability, which is less of an issue if AI-server growth is high. And that's why the stock is a different bet than simply holding greater demand for AI infrastructure.

Supermicro has proven that it can sell the servers. The next hurdle is to prove it can make more money from each one. Its next catalyst will be its fiscal first quarter earnings when investors will evaluate whether the fourth quarter margin rebound was the beginning of a pattern or merely a strong quarter.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Super Micro Computer Investigation Initiated: Kahn Swick & Foti, LLC Investigates the Officers and Directors of Super Micro Computer, Inc. - SMCI Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Super Micro Computer, Inc. (“Super Micro” or the “Company”) (NasdaqGS: SMCI).

On March 19, 2026, post-market, the U.S. Department of Justice announced the unsealing of an indictment against three individuals associated with the Company, Yih-Shyan Liaw (the Company’s co-founder, director, and Senior Vice President of Business Development), Ruei-Tsang Chang (“a general manager in the [Super Micro’s] Taiwan office),” and Ting-Wei Sun (“a third-party broker and fixer”), for engaging in a “scheme to divert massive quantities of servers housing U.S. artificial intelligence technology to customers in China” violating U.S. export control laws, in order to “drive sales and generate revenues in violation of U.S. law” and enabled the sale of “approximately $2.5 billion worth of servers” between 2024 and 2025.

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period in violation of federal securities laws, which remains ongoing.

KSF’s investigation is focusing on whether Super Micro’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.

If you have information that would assist KSF in its investigation, or have been a long-term holder of Super Micro shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-538-3606 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://ksfcounsel.com/cases/nasdaqgs-smci/ to learn more.

About Kahn Swick & Foti, LLC

KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.

TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services

To learn more about KSF, you may visit www.ksfcounsel.com.

CONNECT WITH US: Facebook || Instagram || YouTube || TikTok || LinkedIn

View source version on businesswire.com: https://www.businesswire.com/news/home/20260831189520/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Shares of AI server-maker Super Micro Computer (SMCI -3.59%) rallied 9.4% on Tuesday. The company received a big boost in confidence as enterprise data center infrastructure giant Cisco (CSCO -1.98%) announced it would partner with the server maker on liquid-cooled, rack-scale AI solutions.

That validation is especially valuable for Super Micro, which has long been at the forefront of server technology but has more recently garnered skepticism over corporate governance issues.

Premium Feature

Moneyball Superscore

65/100

Today's Change

(

-3.59

%) $

-1.38

Current Price

$

37.08

Cisco gives a super stamp of approval It should be noted that today's big jump clawed back the significant decline in Super Micro's stock yesterday. On top of Monday being a tough day for the overall AI semiconductor sector, Super Micro's stock fell especially hard after Taiwanese Authorities indicted two Super Micro employees for attempting to redirect Super Micro AI servers to China, in violation of U.S. export restrictions. Super Micro employees weren't the only ones involved; the indictments targeted nine individuals, including one Nvidia (NVDA -4.58%) employee.

The recent indictments follow accusations that Super Micro has been playing fast and loose on other issues, including accounting compliance and corporate governance, since mid-2024.

Super Micro appears to have put most issues behind it, having secured a new auditor who signed off on its books in 2025. Furthermore, Super Micro noted that it was not a defendant in the recent server-smuggling scheme and that it has been working with authorities to help stop third-party smuggling.

Nevertheless, the "smoke" from all these issues appears to have made many investors cautious about Super Micro shares, which trade at a big discount to peers despite a recent massive earnings beat and strong forward guidance.

That's perhaps why Cisco's "seal of approval," so to speak, carries so much weight today. According to today's press release, Cisco is adding Super Micro's liquid-cooled Nvidia AI racks to its Secure AI Factory architecture portfolio, an approved list of AI solutions built with Cisco's secure compliance approval.

Cisco is a giant, longtime infrastructure provider to the biggest enterprises in the world, so its adding Super Micro liquid-cooled racks to its approved product list carries a lot of weight in validating Super Micro's technology, time-to-market execution, and compliance bona fides.

Image source: Getty Images.

Super Micro remains a cheap way to play AI growth Super Micro trades at a massive discount to peers such as Dell Technologies (DELL -3.39%), despite both being AI server producers and each having similar growth profiles.

SMCI PE Ratio (Forward) data by YCharts

No doubt, concerns over Super Micro's governance play a large role in this yawning discount; however, today's announcement shows Super Micro remains a go-to hardware provider for the biggest companies in AI infrastructure. If you feel comfortable that the corporate governance concerns are overblown, the stock looks like a massive bargain and the cheapest way to play the AI boom -- of course, that's a big "if."

-

SAN JOSE, Calif.--(BUSINESS WIRE)--Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”) today announced the completion of the internal investigation led by the Company’s independent members of the Board of Directors regarding the March 2026 indictment of three individuals who were associated with the Company at that time.

As previously disclosed, Supermicro was informed on March 19, 2026 that two employees and a contractor were indicted in connection with an alleged conspiracy to commit export-control violations. Supermicro was not named as a defendant in the indictment and is not accused of any wrongdoing. The Company took swift action, and the three individuals no longer have any relationship with Supermicro.

The investigation was led by Scott Angel, the Company’s Lead Independent Director, and Tally Liu, Chair of the Board’s Audit Committee, and was conducted by Munger, Tolles & Olson LLP, which engaged AlixPartners, LLP, as an independent forensic accounting consultant (collectively, the “Independent Advisors”). The results of the investigation were reported to the independent members of the Board and to the entire Board.

The investigation team reviewed the customer transactions that were the subject of the federal indictment, as well as transactions with a selection of other customers who bought restricted products, and did not find any evidence that any current member of senior management had knowledge of the alleged diversion scheme or of any actual diversion of restricted products by the Company. Nor did the investigation find that the Company directly sold export-controlled products to known restricted parties or locations. It also did not find any evidence that the Company’s previously issued financial statements could not be relied upon based on the potential diversion of restricted products. The Company developed and maintained its export compliance program as its sales of restricted products increased during the period under review. The Company’s compliance personnel have acted in good faith, with the support of management, to mitigate the risk of the Company’s products subject to export controls being diverted to restricted parties or locations.

In connection with the investigation, the Company took several personnel actions with respect to employees within its sales, technical support and business development functions, including terminations, for failure to follow Company policies or the Company’s code of conduct.

With the assistance of the Independent Advisors, the independent directors also made recommendations to further enhance the Company’s export compliance program. The Board has adopted those recommendations in full. The Company has already implemented certain recommendations as a result of an internal review overseen by the General Counsel and the Chief Compliance Officer. The independent directors will oversee implementation of the remaining recommendations.

“We are pleased to report the conclusion of this independent investigation,” said Mr. Angel. “The independent directors support the actions the Company has already taken to bolster its internal policies and procedures, as well as the additional enhancements that will be implemented.”

Supermicro will continue working to combat the industry-wide challenge of diversion and remain committed to upholding the highest standards of compliance. In addition, the Company continues to cooperate with relevant government authorities in connection with their ongoing investigations.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the U.S., Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc. All other brands, names, and trademarks are the property of their respective owners.

More News From Super Micro Computer, Inc.

Back to Newsroom

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Shares of AI server and PC hardware makers are rallying at midday Thursday. Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) leads the group, up 10% to $41. Dell Technologies (NYSE:DELL) is tracking toward $500 for the first time, up 3%. Hewlett Packard Enterprise (NYSE:HPE) is higher by 5%, and HP Inc. (NYSE:HPQ) has added 3%.

Lenovo Earnings Fuel a Read-Through Rally
The catalyst for today’s moves across server companies is a blowout quarter from Chinese peer Lenovo. For the April to June period, Lenovo reported revenue of $26.94 billion, up 43% year over year, versus Wall Street expectations of $22.44 billion. Adjusted net income rose 176% year over year to $1.1 billion, topping the $1 billion mark for the first time.

AI-related revenue climbed 60% to $9.3 billion, accounting for 35% of total revenue. The number investors zeroed in on: the AI server pipeline surged to $54 billion, up 157% sequentially.

CEO Yuanqing Yang said AI is emerging as a clear growth engine across every business group. Because Lenovo competes directly with every name on this list, a beat of that magnitude signals genuine end-market demand across the group. Strength spanned AI infrastructure and PCs, which is why the move reaches HPQ as well as the server names. Lenovo trades in Hong Kong and is not a US-listed idea. Its 215% year to date move on the LNVGY ADR shows how the market is repricing this cycle.

Super Micro Extends Its Post-Earnings Run
Super Micro is layering the Lenovo read-through onto its own guide. On Aug. 11, the company reported Q4 FY26 revenue of $11.12 billion (up 93.2% YoY) and non-GAAP EPS of $1.70, with gross margin expanding to 17.5%. CEO Charles Liang cited more than $60 billion in new orders and a record backlog. The headline number for Wall Street was FY27 revenue guidance of $65 billion to $72 billion, versus Wall Street expectations of $53.3 billion. Analyst reaction has been mixed, with several notes flagging margin volatility even as the top-line guide reset the trajectory.

Dell, HPE, and HPQ: One Catalyst, Three Very Different Businesses

Dell’s Q1 FY27 posted revenue of $43.84 billion (up 87.5% YoY) with AI-optimized server revenue of $16.13 billion (up 757% YoY) and FY27 revenue guided to $165B to $169B.

HPE is the enterprise server, storage, and networking play. Its Q2 FY26 delivered revenue of $10.68 billion (up 40% YoY), with Networking at $2.69 billion (up 148.2% YoY) on the Juniper integration. HPQ is the PC and printing side, where Q2 FY26 revenue rose 9% to $14.41 billion and management raised FY26 non-GAAP EPS guidance to $2.90-$3.10.

Lenovo’s beat validates both the AI infrastructure side and the PC refresh side.

Group Scorecard

Ticker
Today
YTD

SMCI
10%
28%

DELL
3%
288%

HPE
5%
147%

HPQ
3%
35%

The year-to-date dispersion tells the story. The market is paying up for direct AI server exposure (Dell, HPE) and rewarding PC exposure (HPQ) at a much more modest multiple. Morgan Stanley on Thursday upgraded its US IT hardware industry view to In-Line from Cautious, citing refresh, pull-forward, and AI demand. Goldman Sachs has named Dell, HPE and NetApp as top US hardware stocks amid surging AI demand.

Super Micro has lagged peers as accounting issues dogged the company, so it will be interesting to see if this latest quarter provides an inflection point for the company’s shares.

The Risks Investors Should Not Ignore
These gains sit on top of enormous year-to-date runs. Component and memory cost inflation is a live margin threat for every server builder, the same pressure that pinched Cisco’s gross margin this week. A pipeline still has to convert to revenue. And one competitor’s quarter is one data point. Super Micro’s board is still conducting an independent review of export-control transactions, and FY26 operating cash flow was negative $(6.8) billion on working capital build.

What to Watch
Keep an eye on whether Dell holds the $500 handle into the close and whether Super Micro’s multi-day run finds a natural pause after today’s spike. As noted earlier, Super Micro is the biggest question mark in this group. It has lagged its peers due to accounting issues, but could rally if the market believes those are largely behind the company and Super Micro can ride massive AI-driven server growth.

Contact [email protected] for any questions or corrections.

As the artificial intelligence (AI) race reshapes global markets, investors are looking beyond single-stock concentration and shifting focus toward the broader global supply chains powering the revolution. On August 13, Harbor Capital launched five actively managed ETFs targeting companies that are positioned to benefit from the growth of key AI ecosystems relating to OpenAI, Anthropic, Google (GOOGL), Meta (META), and SpaceX (SPCX). The funds launch with an expense ratio of 59 basis points. 

Key Takeaways

Harbor launched five actively managed ETFs targeting the broader AI supply chains and global ecosystems. This includes top tech names like OpenAI, Anthropic, Google, Meta, and SpaceX.
The funds use a proprietary scoring system that analyzes data sources such as company filings, earnings transcripts, and market data. They seek to identify and weight companies based on their economic connection to a specific AI ecosystem.
ETFs like the Anthropic AI Lab Ecosystem ETF (ANTW) provide a unique vehicle to access growth in privately held AI leaders. These funds allow investors to capture the momentum of private innovation through the public companies that support and benefit from those ecosystems.

Harbor AI Labs Suite

Google DeepMind AI Lab Ecosystem ETF (DEPW)
Meta AI Lab Ecosystem ETF (MTAW)
SpaceXAI Lab Ecosystem ETF (XAIW)
OpenAI Lab Ecosystem ETF (OAIW)
Anthropic AI Lab Ecosystem ETF (ANTW)

“I believe 2026 is the year AI migrated from a major theme to its own asset class. The marketplace and investors are demanding different tools to get more precise exposures to distinct parts of the AI asset class. The Harbor AI Lab Ecosystem ETFs sit at the very top of that pyramid. It offers differentiated exposures to each AI Lab ecosystem. We think of these as modern sector funds built for the AI Economy that we now all live in,” said Kristof Gleich, president and chief investment officer, Harbor Capital Advisors, in a press release.

The AI Ecosystem Approach
Advisors use this data to score companies on their economic ties to each AI ecosystem. To isolate these interconnected AI ecosystems, the funds use a proprietary investment process. They evaluate the economic relationship between companies and their respective AI ecosystems using a range of data sources. Those sources include company filings, earnings call transcripts, news, and market data. 

Each company’s score will be the primary determinant of its selection and weighting in the portfolio. The funds’ holdings will include companies involved in software, infrastructure, cybersecurity, and other businesses that support or benefit from the development and adoption of the related AI ecosystem. 

Each fund invests at least 80% of net assets in equity securities of the respective AI ecosystem across U.S. and international markets. The funds will concentrate over 25% of assets on core industries spanning IT, communication services, industrials, consumer discretionary, and utilities. 

The product suite combines both public tech giants and privately held AI leaders. On the public side, the Google DeepMind AI Lab Ecosystem ETF (DEPW), the Meta AI Lab Ecosystem ETF (MTAW), and the SpaceXAI Lab Ecosystem ETF (XAIW) offer exposure to the companies benefiting from the AI growth of these specific public tech giants. On the private side, the OpenAI Lab Ecosystem ETF (OAIW) and the Anthropic AI Lab Ecosystem ETF (ANTW) provide targeted access to the public traded partners, suppliers, and infrastructure providers positioned to benefit from the expansion of these non-public titans.

Inside the AI Ecosystems
For publicly traded AI leaders, the parent company serves as the anchor holding. However, the real engine of these portfolios is the targeted web of suppliers, hardware partners, and power providers filling out the top allocations right below them. 

DEPW holds Google as its top holding at 19.9% of assets, with Broadcom (AVGO) and NextEra Energy (NEE) serving as the next largest allocations. Broadcom is included in the fund for its partnership with Google to co-develop and manufacture Tensor Processing Units (TPU). The TPUs are custom AI chips used by Google to train and run large AI models for Google Deepmind. NextEra Energy is a 6.0% weight in the fund for its partnership with Google to co-develop data centers. This is paired with the development of new dedicated power generation to handle massive AI workloads.

Meta and SpaceX
Meta is a 19.2% weight in MTAW. The fund’s next largest holdings are Nebius Group (NBIS) at 8.1% of assets and Corning Inc (GLW) at 7.4%. Nebius is included in the fund for its multi-year infrastructure supply agreement with Meta. Under this partnership, Nebius acts as a specialized AI cloud provider. It builds and supplies the heavy computing power needed to train and run Meta AI models. Meanwhile, Corning supplies the advanced fiber optic cable that physically link Meta’s specialized AI servers and data centers. 

Looking at XAIW, SpaceX makes up 22.0% of total assets, followed by Nvidia (NVDA) at 8.7% and Super Micro Computer (SMCI) at 6.0%. Nvidia is connected to SpaceX’s AI ecosystem through a partnership to use Nvidia GPUs and systems for its AI needs such as the development of orbital AI data centers. Super Micro Computer is a large holding in XAIW for its role as an infrastructure supplier. The company provides SpaceX with high-performance server racks and liquid-cooling data center systems.

Bridging Private Innovation and Public Markets
Public funds like DEPW, MTAW, and XAIW use their parent companies as portfolio anchors. However, the dynamic changes entirely when turning to non-public titans like OpenAI and Anthropic. The top allocations in OAIW include SoftBank Group (9984) at 9.7% of assets and Oracle (ORCL) at 7.9%. Softbank is a top holding in OAIW for its large investments in OpenAI. In February, the Japanese investment firm announced its total investment in OpenAI will total $64.6 billion. This would secure roughly a 13% ownership of OpenAI, according to the SoftBank announcement. Oracle is a large allocation in OAIW through a massive cloud infrastructure and cloud computing power partnership to help run and train OpenAI’s advanced models. 

TeraWulf (WULF) and Google are top holdings in ANTW, with weights of 10.3% and 9.2% respectively. TeraWulf is the fund’s top holding for its massive 20-year AI infrastructure lease agreement. Under this deal, TeraWulf provides the data center capacity to power Anthropics high-performance computing workloads. Google earned its spot in the fund through its substantial minority stake in Anthropic. Anthropic relies heavily on Google’s TPU chips to power its frontier AI models. 

Changing the Thematic ETF Landscape 
The launch of these funds represents the evolving landscape of thematic ETFs. While investors can already buy shares of public tech leaders like Google, Meta, and SpaceX directly, it only provides exposure to broad corporate operations outside of pure-play AI development. These ETFS address that dilution by shifting the focus from the parent companies to the firms correlated with the success of the respective AI ecosystems. 

For privately held AI leaders like OpenAI and Anthropic, the strategy helps to bridge the gap between private innovation and public liquidity. By investing in the public beneficiaries of these private firms, the ETFs enable investors to participate in non-public AI growth without needing illiquid private investments or waiting for an IPO. 

For more news, information, and analysis, visit VettaFi | ETF Trends.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© gorodenkoff / iStock via Getty Images

Oracle (NYSE:ORCL | ORCL Price Prediction) and Super Micro Computer (NASDAQ:SMCI) both just closed the books on fiscal 2026, and both are riding the same AI infrastructure wave from very different seats.

Oracle is a software incumbent renting AI capacity through OCI. Supermicro is a hardware builder shipping the racks that power those datacenters. The results tell two AI stories with one shared weakness: cash going out faster than it comes in.

OCI Lifts Oracle. Margin Recovery Lifts Supermicro. Oracle’s Q4 was carried by cloud. Cloud Infrastructure revenue hit $5.79 billion, up 93% year over year, and total cloud reached $9.91 billion, or 52% of quarterly sales. The eye-popper is the backlog.

Remaining performance obligations landed at $638 billion, up 363% year over year, with $75 billion tied to customer prepaid or customer-supplied GPUs. That backlog is the reason management confirmed a $90 billion FY2027 revenue target and raised non-GAAP EPS to $8.05.

Supermicro’s story is all about profitability. Q4 non-GAAP EPS came in at $1.70 against a $0.96 consensus, a 77.55% beat, even though revenue of $11.12 billion missed the $11.56 billion estimate. Gross margin landed at 17.5% GAAP, up from 9.5% a year earlier.

CEO Charles Liang credited a “richer enterprise customer mix and broader adoption of our optimized Data Center Building Block Solutions (DCBBS) architecture” and pointed to “more than $60 billion in new orders” during the year.

Software Compounder vs. Hardware Cycle Play Oracle’s chip-neutral strategy is doing real work. Co-CEO Clay Magouyrk noted the “Multicloud database business is our fastest growing business, up 817% in Q2“, with 72 Oracle Multicloud datacenters being embedded inside AWS, Google and Microsoft. That partner-first approach is the opposite of the hyperscaler wars, and it is working.

Business Lens Oracle Supermicro Core Bet OCI capacity and Multicloud database AI server racks and liquid cooling Backlog Signal $638B RPO $60B+ new orders in FY26 Key Vulnerability -$23.69B free cash flow Governance review, thin hardware margins Supermicro is more exposed to the raw AI capex cycle. Manufacturing sits in Silicon Valley, Taiwan, and the Netherlands, with liquid-cooling leadership and a Blackwell Ultra order book previously flagged at $13 billion+.

The catch is real: the board is still conducting an independent review tied to export-control transactions, and FY2026 operating cash flow was negative $6.81 billion on a massive working-capital build.

The Cash Question Decides the Next Six Months Both companies need capital. Oracle plans to raise roughly $40 billion in FY2027 through debt and equity to fund its buildout.

Supermicro pulled in $9.48 billion from financing in FY2026 to keep inventory flowing. I will be watching whether Oracle’s RPO converts into cash-generative revenue fast enough to shrink that free-cash-flow hole, and whether Supermicro can sustain a mid-teens gross margin once the enterprise mix normalizes.

Wall Street is bullish on the stock with several upgrades. Barclays raised the firm’s price target on the stock to $39 from $38 and keeps an Equal Weight while Citi analyst Asiya Merchant raised the firm’s price target to $39 from $33 and keeps a Neutral rating on the shares.

Guidance sets the bar high: Supermicro projected $65 billion to $72 billion in FY2027 revenue.

Why I Lean Oracle for Quality, Supermicro for Torque If you want durable AI exposure, I lean Oracle. The software franchise, 36.2% operating margin, and multicloud footprint feel like a compounder, even after a 24.63% YTD drawdown.

If you want torque and can stomach the governance overhang, Supermicro offers more variance. Shares trade near $31.81 with an analyst target of consensus estimates.

The export-control review is the key overhang to monitor for Supermicro. Until that closes, Oracle screens as the cleaner AI infrastructure exposure, catch and all.

Contact [email protected] for any questions or corrections.

Store

SubscribeSign In

My Subscriptions

Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD LiveCustomer Center

My Stock Lists

Email Preferences

Help & Support

Sign Out

Search stocks or keywords

Sections

My IBD

MARKET TREND

STOCK LISTS

STOCK RESEARCH

NEWSECONOMY

VIDEOS & PODCASTS

HOW TO INVESTEDUCATIONAL RESOURCESStoreMy Products

Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD Live

Recently Searched

SpaceX Stock Falls Back Below IPO Price, Snaps Three-Day Streak

IBD Stock Of The Day: The AI Ties Driving Amphenol's Post-Earnings Recovery

IBD Live Q&A And Two Key Stock Lists For August 11, 2026 Problem-plagued data center hardware firm Super Micro Computer (SMCI) late Tuesday trounced Wall Street's earnings target for its fiscal fourth quarter, though its revenue was below estimates. It also guided well above views for the current quarter. SMCI stock jumped in extended trading. The San Jose, Calif.-based company, better known as Supermicro, earned an adjusted $1.70 a share on sales…

Copyright ©2026 Investor's Business Daily, LLC. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Super Micro Computer, Inc. (NASDAQ:SMCI) will release its fourth quarter earnings report after the closing bell on Tuesday, Aug. 11.

Analysts expect the San Jose, California-based company to report quarterly earnings of 96 cents per share, up from 41 cents per share in the year-ago period. The consensus estimate for SMCI’s quarterly revenue is $11.56 billion. It reported $5.76 billion last year, according to Benzinga Pro.

On July 21, Super Micro Computer provided strong preliminary results for the fourth quarter. Super Micro announced its backlog grew to "record levels" after the company received total new orders of more than $60 billion during its fiscal fourth quarter.

Super Micro Computer shares gained 1.1% to close at $31.46 on Monday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Mizuho analyst Vijay Rakesh maintained a Neutral rating and cut the price target from $44 to $34 on July 23, 2026. This analyst has an accuracy rate of 84%. Barclays analyst Tim Long maintained an Equal-Weight rating and boosted the price target from $34 to $38 on July 22, 2026. This analyst has an accuracy rate of 74%. Needham analyst N. Quinn Bolton maintained a Buy rating and boosted the price target from $40 to $46 on July 22, 2026. This analyst has an accuracy rate of 77%. Citigroup analyst Asiya Merchant maintained a Neutral rating and raised the price target from $31 to $33 on July 13, 2026. This analyst has an accuracy rate of 91%. Wolfe Research analyst George Notter initiated coverage on the stock with a Peer Perform rating on June 11, 2026. This analyst has an accuracy rate of 82%. Considering buying SMCI stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.