Track market-moving stories before they get noisy

Super Micro Computer, Inc. is experiencing explosive AI-driven growth, with preliminary numbers showing Q1 revenues will surge 280% YoY to ~$19 billion. Gross margin guidance has been raised to 12%-12.5%, reflecting successful product differentiation and dispelling server commoditization fears. Strategic partnerships with Cisco and Nokia, along with ongoing innovation, enhance Super Micro Computer's reach and pricing power in AI infrastructure.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Super Micro Computer (SMCI - Free Report) , which belongs to the Zacks Computer- Storage Devices industry, could be a great candidate to consider.

This server technology company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 91.67%.

For the last reported quarter, Super Micro came out with earnings of $1.7 per share versus the Zacks Consensus Estimate of $0.68 per share, representing a surprise of 150.00%. For the previous quarter, the company was expected to post earnings of $0.63 per share and it actually produced earnings of $0.84 per share, delivering a surprise of 33.33%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Super Micro. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Super Micro currently has an Earnings ESP of +36.36%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on November 3, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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.

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Contact [email protected] for any questions or corrections.

Delivers dedicated 256 NVIDIA Vera CPU capacity for agent sandboxes, complementing NVIDIA Vera Rubin NVL72 with common DCBBS infrastructure with third-generation NVIDIA MGX racks and battery backup unitsIntegrates NVIDIA Vera CPUs and BlueField™-4 DPUs with the NVIDIA Open Agent Safety Platform and OpenShell Reference Architecture for secure, high-density agentic AI orchestration and continuous monitoring and policy enforcementLeverages Supermicro DCBBS to deliver a complete, integrated data center solution—from liquid-cooled rack architecture and power infrastructure to networking, cooling, and deployment services—enabling customers to build and scale full AI factories for agentic workloads, /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 the NVIDIA Vera CPU rack as the latest addition to the DCBBS portfolio. The NVIDIA Vera CPU rack delivers dense CPU capacity for agentic AI, reinforcement learning (RL) workloads, and data processing, supporting 22.5K sandboxes at liquid-cooled AI factory scale. Complementary to the now shipping Supermicro NVIDIA Vera Rubin NVL72, the 100% liquid-cooled CPU rack can be used either standalone or alongside NVIDIA Vera Rubin NVL72 in AI factories, providing clusters with high-density CPU compute, designed to address the rapidly escalating requirements of agentic AI.

"As agentic AI transforms data center requirements, Supermicro is extending its DCBBS portfolio with fully integrated infrastructure," said Charles Liang, president and CEO of Supermicro. "For customers seeking air-cooled deployments, Supermicro's NVIDIA Vera CPU portfolio includes air-cooled 1U and 2U systems, in addition to rack-scale liquid cooling options. Together with NVIDIA, we help accelerate time to deployment with a common purpose-built architecture for secure, scalable agentic AI."

To watch a video summary of this release, click here, and for the latest information on Supermicro solutions featuring NVIDIA Vera Rubin, click here.

"As enterprises scale agentic AI and reinforcement learning, supporting thousands of concurrent agent workflows requires a new class of high-density CPU infrastructure," said Chris Marriott, vice president of enterprise platforms at NVIDIA. "NVIDIA Vera CPUs and BlueField-4 DPUs, integrated with Supermicro's liquid-cooled DCBBS architecture, give customers the dedicated compute and hardware-based security to scale the execution of agentic workloads across their AI factories."

Built to power the age of Agentic AI

Agentic AI and RL workloads represent an evolution from linear inference chains to branched, and often looped, execution with many more intermediate steps that depend on CPU availability and performance. GPUs remain the primary engine for generating tokens, code, and queries, while CPU-based sandbox environments execute actions, evaluate results, run tools, and orchestrate workflows. At the scale of modern AI factories, with hundreds or thousands of deployed GPUs, dedicated CPU compute is needed to host thousands or millions of parallel execution environments for agents.

The NVIDIA Vera CPU rack from Supermicro integrates 256 NVIDIA Vera CPUs, delivering 22,528 cores and 45,056 threads and supporting up to 22,500 concurrent agent sandboxes per rack. NVIDIA BlueField-4 DPUs provide high-performance networking and in-silicon security, and Supermicro's DLC-2 direct liquid cooling stack enables a 100% liquid-cooled rack built for these workloads.

Common Infrastructure with Third-Generation MGX Racks and Battery Backup Units

The Vera CPU rack uses the third-generation NVIDIA MGX design, part of the DLC-2 stack, creating a common infrastructure architecture with Vera Rubin NVL72 that supports standardized deployment. NVIDIA MGX is a modular reference architecture for accelerated computing, helping system builders design future-compatible systems faster, reducing costs, accelerating time to market, and improving ROI. To power the compute racks, customers can choose either a traditional AC feed to compute rack or an 800 VDC sidecar power rack, which enables the use of battery backup units (BBU) in place of a conventional UPS for power loss protection. This approach helps free data center floor space, can improve end-to-end power conversion efficiency, and lowers CapEx and OpEx.

Prioritizing Secure Agentic AI with OpenShell Reference Architecture

The NVIDIA Vera CPU rack from Supermicro natively supports NVIDIA OpenShell Reference Architecture to continuously monitor and govern agent behavior, extending Supermicro's support for secure AI agents. NVIDIA OpenShell runs on NVIDIA Vera CPUs to apply least-privilege, policy-based controls to agents at runtime, while NVIDIA Sentry runs on NVIDIA BlueField-4 DPUs as an out-of-band monitor that enforces policy, provides attested telemetry, and can quarantine an agent that moves outside its permitted boundaries in milliseconds. Together, these software solutions can help companies retain observability and auditability in production agentic systems without consuming host CPU resources.

An Optional Companion to Vera Rubin NVL72

The Vera CPU rack is designed to work alongside Vera Rubin NVL72 and is equally suited to standalone deployment. For customers building on the Supermicro DCBBS Blueprints for NVIDIA Vera Rubin NVL72, Supermicro offers an optional design that pairs Vera Rubin NVL72 racks with Vera CPU racks, with a defined network topology built on NVIDIA Spectrum-X™ Ethernet, hot-aisle containment layouts, and redundant in-row coolant distribution units (CDUs) and rear door heat exchangers from the DLC-2 stack. A single Supermicro team supports site survey, design, L11 and L12 integration and testing, on-site deployment, and ongoing support, whether the Vera CPU rack is deployed with Vera Rubin NVL72 or on its own.

Flexible Deployment Beyond NVIDIA Vera Rubin NVL72

The Vera CPU rack also operates as a standalone CPU platform. Standalone deployments can accelerate agent orchestration and sandboxing, database operations, cluster management, and schedulers such as Slurm and Kubernetes, data analytics, and large-scale software build pipelines.

Availability

The Supermicro NVIDIA Vera CPU rack is available to quote now. Learn more about Supermicro's NVIDIA Vera CPU rack, and other solutions in the NVIDIA Vera Rubin platform here.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/supermicro-introduces-the-nvidia-vera-cpu-rack-a-256-cpu-100-liquid-cooled-rack-scale-solution-complementing-the-nvidia-vera-rubin-platform-for-agentic-ai-at-scale-302916308.html

SOURCE Super Micro Computer, Inc.

Delivers dedicated 256 NVIDIA Vera CPU capacity for agent sandboxes, complementing NVIDIA Vera Rubin NVL72 with common DCBBS infrastructure with third-generation NVIDIA MGX racks and battery backup units Integrates NVIDIA Vera CPUs and BlueField™-4 DPUs with the NVIDIA Open Agent Safety Platform and OpenShell Reference Architecture for secure, high-density agentic AI orchestration and continuous monitoring and policy enforcement Leverages Supermicro DCBBS to deliver a complete, integrated data center solution—from liquid-cooled rack architecture and power infrastructure to networking, cooling, and deployment services—enabling customers to build and scale full AI factories for agentic workloads , /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 the NVIDIA Vera CPU rack as the latest addition to the DCBBS portfolio. The NVIDIA Vera CPU rack delivers dense CPU capacity for agentic AI, reinforcement learning (RL) workloads, and data processing, supporting 22.5K sandboxes at liquid-cooled AI factory scale. Complementary to the now shipping Supermicro NVIDIA Vera Rubin NVL72, the 100% liquid-cooled CPU rack can be used either standalone or alongside NVIDIA Vera Rubin NVL72 in AI factories, providing clusters with high-density CPU compute, designed to address the rapidly escalating requirements of agentic AI.

256 CPU Liquid-Cooled NVIDIA Vera CPU Rack for Agentic AI "As agentic AI transforms data center requirements, Supermicro is extending its DCBBS portfolio with fully integrated infrastructure," said Charles Liang, president and CEO of Supermicro. "For customers seeking air-cooled deployments, Supermicro's NVIDIA Vera CPU portfolio includes air-cooled 1U and 2U systems, in addition to rack-scale liquid cooling options. Together with NVIDIA, we help accelerate time to deployment with a common purpose-built architecture for secure, scalable agentic AI."

To watch a video summary of this release, click here, and for the latest information on Supermicro solutions featuring NVIDIA Vera Rubin, click here.

"As enterprises scale agentic AI and reinforcement learning, supporting thousands of concurrent agent workflows requires a new class of high-density CPU infrastructure," said Chris Marriott, vice president of enterprise platforms at NVIDIA. "NVIDIA Vera CPUs and BlueField-4 DPUs, integrated with Supermicro's liquid-cooled DCBBS architecture, give customers the dedicated compute and hardware-based security to scale the execution of agentic workloads across their AI factories."

Built to power the age of Agentic AI

Agentic AI and RL workloads represent an evolution from linear inference chains to branched, and often looped, execution with many more intermediate steps that depend on CPU availability and performance. GPUs remain the primary engine for generating tokens, code, and queries, while CPU-based sandbox environments execute actions, evaluate results, run tools, and orchestrate workflows. At the scale of modern AI factories, with hundreds or thousands of deployed GPUs, dedicated CPU compute is needed to host thousands or millions of parallel execution environments for agents.

The NVIDIA Vera CPU rack from Supermicro integrates 256 NVIDIA Vera CPUs, delivering 22,528 cores and 45,056 threads and supporting up to 22,500 concurrent agent sandboxes per rack. NVIDIA BlueField-4 DPUs provide high-performance networking and in-silicon security, and Supermicro's DLC-2 direct liquid cooling stack enables a 100% liquid-cooled rack built for these workloads.

Common Infrastructure with Third-Generation MGX Racks and Battery Backup Units

The Vera CPU rack uses the third-generation NVIDIA MGX design, part of the DLC-2 stack, creating a common infrastructure architecture with Vera Rubin NVL72 that supports standardized deployment. NVIDIA MGX is a modular reference architecture for accelerated computing, helping system builders design future-compatible systems faster, reducing costs, accelerating time to market, and improving ROI. To power the compute racks, customers can choose either a traditional AC feed to compute rack or an 800 VDC sidecar power rack, which enables the use of battery backup units (BBU) in place of a conventional UPS for power loss protection. This approach helps free data center floor space, can improve end-to-end power conversion efficiency, and lowers CapEx and OpEx.

Prioritizing Secure Agentic AI with OpenShell Reference Architecture

The NVIDIA Vera CPU rack from Supermicro natively supports NVIDIA OpenShell Reference Architecture to continuously monitor and govern agent behavior, extending Supermicro's support for secure AI agents. NVIDIA OpenShell runs on NVIDIA Vera CPUs to apply least-privilege, policy-based controls to agents at runtime, while NVIDIA Sentry runs on NVIDIA BlueField-4 DPUs as an out-of-band monitor that enforces policy, provides attested telemetry, and can quarantine an agent that moves outside its permitted boundaries in milliseconds. Together, these software solutions can help companies retain observability and auditability in production agentic systems without consuming host CPU resources.

An Optional Companion to Vera Rubin NVL72

The Vera CPU rack is designed to work alongside Vera Rubin NVL72 and is equally suited to standalone deployment. For customers building on the Supermicro DCBBS Blueprints for NVIDIA Vera Rubin NVL72, Supermicro offers an optional design that pairs Vera Rubin NVL72 racks with Vera CPU racks, with a defined network topology built on NVIDIA Spectrum-X™ Ethernet, hot-aisle containment layouts, and redundant in-row coolant distribution units (CDUs) and rear door heat exchangers from the DLC-2 stack. A single Supermicro team supports site survey, design, L11 and L12 integration and testing, on-site deployment, and ongoing support, whether the Vera CPU rack is deployed with Vera Rubin NVL72 or on its own.

Flexible Deployment Beyond NVIDIA Vera Rubin NVL72

The Vera CPU rack also operates as a standalone CPU platform. Standalone deployments can accelerate agent orchestration and sandboxing, database operations, cluster management, and schedulers such as Slurm and Kubernetes, data analytics, and large-scale software build pipelines.

Availability

The Supermicro NVIDIA Vera CPU rack is available to quote now. Learn more about Supermicro's NVIDIA Vera CPU rack, and other solutions in the NVIDIA Vera Rubin platform here.

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.

On October 21, 2026, Super Micro Computer Inc SMCI shares rose 9.6% to $35.57. This increase comes amid a 52-week range of $19.48 to $55.35, reflecting a volatile year for the company.

GF Value™ verdict: Current price of $35.57 vs GF Value of $90.96, indicating 60.9% upside potential.GF Score™: 85/100, indicating a strong overall rating.Most notable signal: Insiders sold $27.9M worth of shares over the past 12 months, with no buying activity.Is SMCI Overvalued or Undervalued?Super Micro Computer Inc SMCI currently trades at $35.57, significantly below its GF Value™ estimate of $90.96. This suggests a potential undervaluation of approximately 60.9%, which could signal an attractive investment opportunity. However, it is crucial to note that the GF Value™ estimate is derived from historical trading multiples and projected future performance, and is considered less reliable for companies that are currently unprofitable or cash-flow-negative.

The GF Valuation label indicates that SMCI might be a possible value trap, which means that while the stock appears undervalued based on the GF Value™, it might not be a secure investment due to underlying financial issues. Investors should approach with caution, as the fundamentals of the company may not support such a high intrinsic value estimate.

How Does SMCI's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)10.8x19.4xForward P/E8.2xN/AThe current P/E (TTM) of 10.8x is significantly below its 5-year median P/E of 19.4x, indicating that SMCI is trading at a lower valuation compared to its historical performance. This analysis aligns with the GF Value™ verdict, suggesting that the stock may be undervalued based on traditional earnings metrics. However, given the current losses, earnings-based valuation may not accurately reflect the company's future potential.

What Does SMCI's GF Score™ Tell Us?The GF Score™ is a composite metric that evaluates a stock based on various factors including financial strength, profitability, growth potential, valuation, and momentum. SMCI's score of 85/100 indicates a strong overall performance, particularly in growth, while its valuation score is notably weaker.

MetricRatingGF Score™85Financial Strength7/10Profitability8/10Growth10/10Valuation2/10Momentum8/10SMCI's strongest area is its growth rank, scoring 10/10, indicating robust growth potential. However, the valuation rank of 2/10 suggests that the stock is currently perceived as overvalued based on earnings metrics, which aligns with the cautionary GF Valuation label. The financial strength and profitability scores are solid, but the low valuation rank raises concerns about the sustainability of the current price levels.

What Are Gurus and Insiders Doing with SMCI?Currently, 8 gurus hold Super Micro Computer Inc SMCI stock, with 7 increasing their positions recently while 2 have trimmed their stakes. This activity indicates a generally positive sentiment among institutional investors, suggesting confidence in the company's future prospects despite recent stock performance.

On the insider front, the sale of $27.9M worth of shares over the past 12 months, with no buying activity, raises red flags. This selling behavior could imply that insiders lack confidence in the company's near-term performance or are looking to realize gains. The contrast between guru activity and insider selling should be carefully considered by potential investors.

What This Means for InvestorsBased on the GF Value™ analysis and the underlying financial metrics, Super Micro Computer Inc SMCI appears to be undervalued at its current price of $35.57. However, the company's status as a cash-flow-negative entity and the warning of a potential value trap suggest that caution is warranted. Investors should weigh the attractive upside indicated by GF Value™ against the risks highlighted by insider selling and financial performance.

For further insights into Super Micro Computer Inc SMCI , visit the SMCI stock page for comprehensive analysis and data.

Frequently Asked QuestionsWhat is SMCI's GF Score™?

SMCI has a GF Score™ of 85/100, indicating a strong overall rating and reflecting robust potential in certain areas.

Is SMCI overvalued or undervalued?

According to GF Value™, SMCI is currently undervalued, trading at a significant discount to its estimated fair value of $90.96.

What is SMCI's P/E ratio?

SMCI's P/E (TTM) is 10.8x, which is substantially below its 5-year median of 19.4x, indicating a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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Super Micro Computer (SMCI) is experiencing a significant surge after announcing preliminary revenue and gross-margin estimates for the first quarter of fiscal

Super Micro Computer Inc. (NASDAQ:SMCI) handed short sellers a rough morning. The server maker raised its first-quarter revenue outlook by $4 billion at the midpoint late Tuesday and guided gross margins well above its prior range, sending shares sharply higher in Wednesday's premarket session.

Super Micro Computer Inc (NASDAQ:SMCI) jumped 11% to $36.03 after forecasting first-quarter revenue of up to $19.5 billion, well above previous guidance, as demand for artificial intelligence infrastructure strengthened.

The US server maker expects sales of $18.5 billion to $19.5 billion for the quarter, compared with its previous forecast of $14.5 billion to $15.5 billion, while gross margins are also expected to exceed earlier expectations.

Wedbush viewed the preliminary results as a clear positive, highlighting stronger-than-expected AI demand and improved profitability as encouraging signs for the wider hardware sector.

Super Micro expects gross margins of 12% to 12.5%, above its previous forecast of 10.4% to 10.8%, reflecting a more favourable mix of customers and products.

At the midpoint of its updated ranges, revenue is about 27% above the previous guidance midpoint, while gross profit is estimated at roughly $2.3 billion, up about 19% from the previous quarter.

However, the expected margin remains below the 17.6% recorded in the fourth quarter, leaving questions over whether the improvement reflects sustainable pricing power or temporary factors.

Wedbush is holding off on revising its forecasts until the company reports its full results, as it seeks greater clarity on the durability of the sales and margin momentum.

The broker also sees potential read-throughs for Dell Technologies and Hewlett Packard Enterprise, which compete in the server market, as well as Nvidia, whose processors are central to many of Super Micro's AI systems.

Stronger AI infrastructure demand could also support memory and hard-drive suppliers by easing concerns that demand might weaken after a period of rapid expansion.

Funding risks remain in focus
Despite the upbeat preliminary figures, Wedbush highlighted financing as a key risk ahead of Super Micro's full results on November 3.

The company ended its previous quarter with a cash conversion cycle of 149 days, a measure of how long cash remains tied up in inventory and customer payments, while only about $62 million remained available under its bank credit lines at the financial year-end.

Wedbush warned that the business could face additional funding needs if its cash conversion cycle fails to shorten as sales expand.

The broker also questioned whether Super Micro would need to raise its full-year revenue guidance of $65 billion to $72 billion to reflect the latest performance.

Using the midpoint of the preliminary first-quarter range and its unchanged forecasts for the remaining quarters, Wedbush calculates that annual revenue would reach about $72.5 billion, already above the top of the company's existing guidance.

The broker said a higher full-year forecast would help establish whether the latest upside reflects additional demand or simply shipments brought forward from later quarters.

Investors will also be watching for details on the company's order backlog, the timing of Nvidia's next-generation Vera Rubin systems and the potential effect of new products on margins.

Super Micro previously reported more than $60 billion in orders during the fourth quarter but did not disclose the value of its outstanding backlog.

Wedbush also raised the possibility that demand from SpaceX, faster customer readiness, and component shortages contributed to the latest earnings beat, although it emphasised that the exact causes remain uncertain.

21.10.2026 16:07, CMG, PM, SMCI, SPCX

Index Dow Jones -0,04 % na 52477,32 b.
S&P 500 +0,24 % na 7731,09 b.
Nasdaq Composite +0,78 % na 26629,82 b.

Index S&P 500 v úvodu obchodování posiluje. Silné výsledky vesmírné a AI společnosti SpaceX (+12,0 %) podle agentury Bloomberg podnítily růst technologických akcií a zmírnily obavy, zda může být celosvětová investiční vlna do umělé inteligence udržitelná. Tomuto sentimentu napomáhají také předběžná čísla výrobce serverů Super Micro Computer (+13 %). Ten v 1Q FY 2027 reportoval předběžné čisté tržby v rozmezí 18,5 až 19,5 mld. USD, přičemž odhad trhu byl pouze 14,99 mld. USD. Předběžná hrubá marže dosáhla 12,0 až 12,5 %. Analytici z Bernstein uvedli, že předběžné tržby a hrubá marže výrazně překonaly očekávání, přičemž poznamenali, že AI infrastruktura si dál vede silně. Výsledky podle nich naznačují, že růst AI serverů se konečně znovu zrychlil, protože se začaly realizovat některé odložené objednávky.

Své výsledky také zveřejnily společnosti Netflix (-3,1 %), Capital One Financial (+3,7 %) a Thermo Fisher Scientific (+0,9 %). Podrobnosti naleznete v jednotlivých zprávách. Výsledky společnosti AT&T (-4,8 %) v samostatné zprávě připravujeme.

Nedaří se akciím provozovatele mexických restaurací Chipotle Mexican Grill (-5,1 %). Analytik Andrew Charles z TD Cowen snížil doporučení ze stupně „Buy“ na „Hold“ kvůli obavám o vývoj růstu. „Obáváme se, že říjnové tržby nedosáhnou obratu ve 4Q, který jsme dříve očekávali díky snadné srovnávací základně z loňského října, a to znamená, že k naplnění konsensu počítajícího s růstem tržeb srovnatelných prodejen o více než 3 % v roce 2027 bude potřeba spoléhat na méně ověřené tahouny tržeb, které se teprve rozvíjejí,“ uvedl analytik. Cílovou cenu zároveň snížil na 32 USD z původních 44 USD.

Své výsledky hospodaření zveřejnila také tabáková společnost Philip Morris International (-1,6 %). Společnost dosáhla meziročního růstu organických tržeb o 7,1 % při očekávání +5,35 %. Očištěný zisk na akcii činil 2,36 USD při odhadu 2,30 USD. Společnost v celém roce očekává očištěný zisk na akcii ve výši 8,29 až 8,44 USD, zatímco dříve očekávala 8,35 až 8,50 USD. Trh odhadoval 8,41 USD. Firma nadále v celém roce očekává růst organických tržeb o 5 až 7 % při konsensu +5,56 %.

Index S&P 500 +0,24 % na 7731,09 b.

Nejsilnější sektory S&P
Změna
Nejslabší sektory S&P
Změna

Informační technologie
+1 %
Komunikační služby
-1 %

Průmysl
+0,9 %
Zdravotní péče
-0,8 %

Utility
+0,3 %
Nezbytná spotřeba
-0,5 %

Nejsilnější akcie S&P
Změna
Nejslabší akcie S&P
Změna

Super Micro Computer (SMCI)
+13 %
Chipotle Mexican Grill (CMG)
-5,1 %

EchoStar Corp (ECHO)
+7,7 %
AT&T (T)
-4,8 %

Vertiv Holdings (VRT)
+6,1 %
Intuitive Surgical (ISRG)
-4,5 %

Bloom Energy Corp (BE)
+5,8 %
Netflix (NFLX)
-3,1 %

Dell Technologies (DELL)
+5,5 %
Abbott Laboratories (ABT)
-3,1 %

Zdroj: Bloomberg

Michal Bárta
Fio banka, a.s.
Prohlášení

Super Micro Computer SMCI shares jumped more than 7% early Wednesday as the company revised its September-quarter forecast. The new sales range exceeds its earlier outlook and analysts' projections.

Revenue is forecast at $18.5 billion to $19.5 billion for the fiscal first quarter ended Sept. 30, against the previous $14.5 billion to $15.5 billion range and analyst expectations near $15 billion. The sharp reset suggests demand is running ahead of management's previous assumptions.

The company also lifted its gross-margin projection to 12% to 12.5%, from an earlier 10.4% to 10.8% range. Gross margin measures the share of sales left after direct product costs. Super Micro linked the change to its customer and product mix.

The figures are preliminary and unaudited, so final results may differ. Super Micro is scheduled to report complete quarterly results on Nov. 3, giving investors a chance to compare reported performance with the revised outlook.

Super Micro supplies data-center servers, including systems using Nvidia chips. Its final figures will help show whether the stronger sales outlook translates into the expected improvement in profitability.

Tech remains vital Wednesday with Meta Platforms (META) and Tesla (TSLA) reporting earnings after the close. Kevin Green takes investors through his market analysis and takeaways on what to expect into the reports.

Super Micro Computer's preliminary quarter landed far outside what management had promised, and the ripple through AI server stocks raises a bigger question about whether demand is accelerating faster than anyone guided.

Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) just posted a preliminary quarter. It cleared its own revenue forecast by a wide margin, and the update is pulling the artificial intelligence (AI) server group higher with it. In morning trading, Super Micro Computer stock is up 12% to $36.45, a gain that resets the shares around a much bigger quarter than management had guided.

Meanwhile, Dell Technologies (NYSE:DELL) stock is up 7% to $494.24, a solid gain that still trails the move in Super Micro Computer stock by a wide stretch. Hewlett Packard Enterprise (NYSE:HPE) stock is up 5% to $58.84, landing behind Dell stock while tracking the same upward path as Super Micro Computer stock.

Beyond the server group, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.6% to $722.14, a far quieter move for the large-cap tech benchmark. That gap suggests buyers are targeting AI hardware rather than tech broadly. For further context, it’s also worth noting that the iShares U.S. Technology ETF (NYSE ARCA:IYW) is up 0.7% to $255.16.

Preliminary Revenue Clears Super Micro’s Own Guidance Super Micro Computer issued a preliminary update after the prior session’s close for its fiscal first quarter of 2027 (Q1 FY2027), which ended in September. That release has Super Micro Computer estimating revenue of at least $18.5 billion, above the top of its prior guidance range, on stronger demand for AI platforms. Clearing the high end of its own forecast by that distance hands the market a concrete data point on AI server demand for the rest of the fiscal year.

Profitability commentary added to the upside, with Super Micro Computer also estimating gross margins above its prior guidance range, citing customer and product mix. Full results and a conference call are scheduled for early November, when the company will replace its estimates with reported figures. Last week, the company named Mark Long as chief financial officer, placing a new finance chief in the seat ahead of that report.

Pure-Play AI Exposure Puts Super Micro Ahead of Dell and HPE Super Micro Computer builds AI server and rack systems. It runs on thin margins as its core business, so its revenue swings with large customer orders and their deployment timing (we covered seven companies supplying the AI data center expansion, from power to cooling, in a free report here). Dell and Hewlett Packard Enterprise sell AI servers alongside PCs, storage and networking, so the same demand reaches a smaller share of their revenue, and that gap, plus the update being its own, explains why Super Micro Computer stock is moving harder.

For Super Micro Computer, thin margins cut both ways. Richer enterprise mix can lift Super Micro Computer’s profitability quickly, while a heavier tilt toward large data center deals could undo that progress just as fast. Unaudited preliminary figures add another layer of uncertainty until the company reports in full and answers questions on its call.

Final Results Will Test Super Micro’s Preliminary Beat The open variable for Super Micro Computer is final confirmation of its preliminary range, since unaudited estimates can shift. Its full report and conference call will show whether the revenue estimate holds. For Dell and Hewlett Packard Enterprise, the bull case is expanding AI server demand across their wider portfolios, while the bear case is a sympathy rally resting on another company’s unaudited numbers.

Beyond the final tally, the next test for Super Micro Computer is whether its margins hold as AI orders grow, because its business model leaves little cushion if bigger deals arrive at lower pricing. Traders may prefer to keep their exposure smaller until Super Micro Computer’s margin outlook resolves.

Contact [email protected] for any questions or corrections.

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21.10.2026 8:49

Nálada na globálních trzích se zlepšuje díky silným výsledkům společností napojených na umělou inteligenci. Investory povzbudil zejména překvapivě vysoký zisk SpaceX a silná čísla firmy Super Micro Computer, které pomohly obnovit důvěru v technologický sektor po nedávných pochybnostech o financování AI infrastruktury.

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SAN JOSE, Calif.--(BUSINESS WIRE)--Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), an AI, Enterprise, Storage, and 5G/Edge IT Total Solution Provider, featuring Data Center Building Block Solutions® (DCBBS), today is providing a preliminary business update for the first quarter of fiscal year 2027 (Q1'27), ended September 30, 2026, and schedules earnings call for November 3rd at 5pm EST. Revenues for the first quarter of fiscal year 2027 are estimated to be in the ran.

Super Micro Computer soared late Tuesday after the AI server reported booming preliminary sales for the latest quarter. Rivals Dell Technologies and Hewlett-Packard Enterprise also jumped.

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.

Taiwan just announced plans to criminalize AI chip shipments to China, and the legal gap still open is the only thing standing between three major semiconductor companies and a tighter regulatory net.

Until now, someone in Taiwan who shipped a rack of AI servers to a buyer in China faced no direct criminal penalty at home. On October 16, 2026, Taiwan’s Minister of Economic Affairs Kung Ming-hsin confirmed that Taipei plans to add AI servers and cutting-edge semiconductors to its controlled goods list. That would make these shipments a crime under the Foreign Trade Act.

“About to” means the plan has been announced but is still waiting on the law. It needs a legal amendment, and Kung gave no timeline.

For shareholders of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Taiwan Semiconductor Manufacturing (NYSE:TSM) and Super Micro Computer (NASDAQ:SMCI), the effect is mixed. Closing the Taiwan channel could remove gray-market demand that never showed up in official China sales, but it also reduces regulatory risk around all three companies.

Friday’s moves came with a broader chip selloff and had little to do with this news. NVIDIA closed at $214.13, down 1.43%, worth $5.17 trillion. Taiwan Semiconductor fell 2.28% to $412.61, down 8.98% over the past week, and is worth $ 1.89 trillion. Super Micro dropped 9.86% to $31.63, worth $20.78 billion, after a one-week decline of 24.43%.

What Taipei Has Proposed Taiwan’s current controls rely on a company blacklist that added Huawei and SMIC in mid-2025. The new approach would replace that list with a restriction covering the entire Chinese market.

In remarks reported in translation, Kung said “the measures we take on certain controlled items will correspond with those of the United States,” giving enforcement agencies “more legal tools” against smuggling.

He tied the move to the trade agreement Taiwan signed with Washington on January 15. That deal cut US tariffs on most Taiwanese goods from 20% to 15% and came with $250 billion in Taiwanese company commitments for US projects. Separately, DPP legislator Chung Chia-pin has drafted an amendment that adds a mainland China semiconductor clause, and it still has to pass.

The channel through which restricted hardware entered China was simple: servers built in or routed through Taiwan and other hubs ended up with Chinese buyers. Taiwan detained alleged AI chip smugglers in May.

In July, prosecutors pursued Super Micro executives on forgery charges. No one has been charged with chip smuggling in that case.

Why Super Micro Carries the Most Exposure NVIDIA has already removed China from its numbers. Its third-quarter fiscal 2027 outlook of $108.0 billion excludes all China data center compute revenue, so lost gray-market demand would not hurt its guidance, and closer alignment with Washington could help when future licenses come up.

Taiwan Semiconductor makes the chips but does not ship servers. Its main gain is stability in the trade deal that sets its home market’s tariff rate.

Super Micro builds systems in Taiwan, and its board has disclosed an independent review of certain transactions related to export-control issues. That makes it the most exposed and most volatile of the three.

Regardless, Kung gave no start date, penalty schedule, or final list of covered products. Smuggling enforcement had already been a US and Singapore story, so Taiwan’s step adds to existing efforts, and the market appeared to treat it that way.

What the Taiwan Rule Means for NVIDIA’s Outlook NVIDIA looks well positioned. The Taiwan rule cuts off demand the company never booked, while revenue grew 105.8% in the last quarter and management called its outlook “supply-constrained.”

At about 43 times earnings, the stock is priced for growth. But the new policy takes risk away from the business and adds none.

Taiwan Semiconductor participates in the AI expansion without server exposure. After a weekly drop of 8.98%, it raised fourth-quarter revenue guidance from $52.3 billion to $54.3 billion.

This view will be tested by whether Chung’s amendment passes Taiwan’s legislature with a start date and by whether NVIDIA’s next earnings report meets its $108.0 billion guidance.

Contact [email protected] for any questions or corrections.

SAN JOSE, Calif.--(BUSINESS WIRE)--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 the appointment of Mark Long as Senior Vice President and Chief Financial Officer reporting directly to the Chief Executive Officer (CEO) Charles Liang, effective immediately.Mr. Long is a seasoned finance executive with decades of experience across the technology sector spanning c.

Barclays just pulled its buy ratings on three major AI hardware names, and the reason has nothing to do with demand collapsing. A quiet force inside the supply chain may have been inflating server revenues all along.

Dell Technologies (NYSE:DELL | DELL Price Prediction) is leading a fresh retreat in artificial intelligence (AI) hardware, as doubts about the timing of enterprise spending hit server makers hardest. In morning trading, Dell stock is at $465.31, down 8%. That pressure is landing on companies coming off record backlogs and raised guidance.

Meanwhile, Hewlett Packard Enterprise (NYSE:HPE) stock is at $58.57, down 7%. Super Micro Computer (NASDAQ:SMCI) stock is at $33.13, also down 7%, matching Dell’s slide. Those falls. extend a data center selloff that Dell stock led on Wednesday.

Barclays cut its rating on Dell stock to the equivalent of hold from buy on Wednesday, applying the same downgrade to Hewlett Packard Enterprise stock and to NetApp (NASDAQ:NTAP) stock. The downgrade rests on the size of the run and on enterprise AI spending timing. Although Super Micro Computer wasn’t part of the rating action, its shares are sliding alongside the downgraded names.

Enterprise AI Spending Timing Drives the Downgrade At the heart of the downgrade is the view that there hasn’t been a meaningful inflection in what businesses are actually spending on AI. Under that thesis, Dell’s recent revenue strength owes more to a global memory shortage pushing component prices higher than to new demand.

Memory chips were the tightest supply constraint Dell faced in Q2 FY2027, and rising input costs fed into its raised outlook. Configurations Dell sells cost more each quarter, which builds some inflation into its growth. Shortages also extended to NAND flash storage and some processors, leaving Dell’s demand ahead of what it could ship.

AI Hardware Reprices as Tech Funds Slip Less Technology funds are sliding far less. The iShares U.S. Technology ETF (NYSEARCA:IYW) is at $255.88, down 1%. Large-cap technology is holding up similarly, with the Invesco QQQ Trust (NASDAQ:QQQ) at $719.84, down 1%.

That gap marks the selling as a repricing of the AI hardware trade, concentrated in the companies most tied to server demand. NetApp sells enterprise storage and data management, so the memory argument applies to its hardware business as well.

Dell’s Order Book Anchors the Bull Case Dell’s bull case comes down to its order book. In its Q2 results, Dell booked a record $60.9 billion in AI server orders and ended the quarter with an all-time-high $95 billion AI backlog. Its traditional server and networking revenue soared 122% year over year, driven mainly by long-standing enterprise customers overhauling their data centers.

On top of that, Dell raised its fiscal 2027 revenue outlook to $192 billion and now projects $74 billion in AI-optimized server sales for the year. That outlook comes against a P/E ratio of 27x for Dell stock. However, part of that growth reflects higher component prices.

A similar question hangs over Hewlett Packard Enterprise, with networking and AI servers in its mix and its Juniper Networks integration still underway. Super Micro Computer carries an added risk, since its board is conducting an independent review of certain transactions tied to export-control issues.

Memory Prices Hold the Next Answer The next test for Dell is whether memory prices hold, since the downgrade depends on what happens to infrastructure revenue when they stop rising. Hewlett Packard Enterprise’s Juniper Networks integration could reveal if its networking push can carry results.

Investors may want to moderate their position sizes in all three names until then, given the downgrade and component-price risk. The takeaway: record backlogs support the business, but the run leaves less room for error.

Contact [email protected] for any questions or corrections.

Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock dropped 8% to $35.85 this afternoon, leaving the stock up 22% in 2026.

Barclays just pulled the rug on two of the biggest names in AI server hardware, and the selloff raises a question every enterprise tech investor needs to answer: how much AI growth is already baked into these stocks?

Dell Technologies (NYSE:DELL | DELL Price Prediction) stock is down 8% to $526.86 in morning trading after Barclays cut its rating on the shares to Equal Weight from Overweight. The call questions how much more upside Wall Street can assign to a company whose artificial intelligence (AI) server business is still expanding quickly. That tension is now central to a broad pullback in enterprise hardware names tied to AI demand.

Meanwhile, Hewlett Packard Enterprise (NYSE:HPE) stock is down 5% to $65.45 after drawing the same downgrade from Barclays. Additionally, Super Micro Computer (NASDAQ:SMCI) stock is down 4% to $37.37, a lighter decline than Dell’s. Hewlett Packard Enterprise sells similar server and networking equipment to the same enterprise buyers, while Super Micro Computer builds comparable systems as a smaller specialist.

Selling pressure is far greater in hardware than across the broader sector, as the iShares U.S. Technology ETF (NYSEARCA:IYW) is down 1%. Large-cap growth benchmarks are holding up even better, and the Invesco QQQ Trust (NASDAQ:QQQ) is down 0.9%, a much softer decline than the server makers are posting.

Barclays Questions How Much AI Growth Is Priced In Barclays analyst Tim Long wrote that valuations across corporate-focused hardware names have run too far and that he doesn’t yet see a meaningful AI inflection in enterprise spending. Long lowered his price target on Dell stock to $574 and on Hewlett Packard Enterprise shares to $77. He still expects Dell and Hewlett Packard Enterprise to top earnings estimates, though he argued the scale of those surprises is likely to become much smaller.

Long’s downgrade takes aim at valuation. That leaves Dell’s AI server growth outlook intact, so the real debate centers on how much good news Dell stock already reflects after its strong run. Separately, Accenture and Dell announced an expanded partnership on October 9. The deal is built around a dedicated private AI business group, aimed at customers who want to run those workloads inside their own data centers.

Why Dell Takes the Hardest Hit Dell sells servers, storage and personal computers, and its recent growth has come from configuring and shipping AI computing racks built around other companies’ chips. That’s a high-volume business earning thin margins on expensive hardware. When upside surprises shrink, a business built on shipping volume has less room to impress on profitability, which can leave Dell stock more exposed to valuation concerns.

Enterprise buyers sit at the core of Dell’s AI exposure, which places the company directly in the path of Long’s concern about corporate spending, and Hewlett Packard Enterprise faces a similar question because it sells into many of the same corporate data centers. Such overlap helps explain why one analyst note is weighing on shares of Dell and Hewlett Packard Enterprise together.

Enterprise Orders Hold the Key for Dell The next share-price move for Dell stock could depend on whether corporate customers start ordering AI hardware at the scale its valuation already assumes. Long’s call frames that as an unresolved question. The Accenture partnership offers an early read on how quickly private AI demand takes shape (we featured seven suppliers riding the same data-center expansion, from power to cooling, in a free report). A parallel question hangs over Hewlett Packard Enterprise, which sells similar equipment to the same corporate buyers.

Smaller beats from Dell would support the Barclays view, while another large upside surprise would challenge it, and any visible pickup in corporate AI orders could also ease the valuation pressure Long describes. Investors should consider keeping their position sizes modest until enterprise ordering patterns become clearer.

Contact [email protected] for any questions or corrections.

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.

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