Super Micro Computer (SMCI) AI Stock Analysis

• Market Cap: $28.98B
• Dividend Yield: N/A
• Average Volume (3M): 38.34M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 3.33
• Revenue Growth: 82.10%
• EPS Growth: 6.35%
• Country: US
• Employees: 5,684
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): 0.31
• Shares Outstanding: 596,817,600
• 10 Day Avg. Volume: 52,695,691
• 30 Day Avg. Volume: 38,338,161
• PEG Ratio: 0.17
• Price to Book (P/B): 6.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.05
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 5.36
• Enterprise Value/Ebitda: 2.21
• 1Y Price Target: $41.42
• Price Target Upside: -14.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $56.00 ▲(15.32%Upside)

Super Micro Computer's strong financial performance, supported by robust revenue growth and profitability, significantly boosts its overall score. However, technical indicators suggest caution due to near overbought conditions. The valuation is moderate, and recent earnings call highlights mixed prospects amid platform transitions. Positive corporate events add to growth potential, aligning with strategic expansion efforts.

Positive Factors

Technology Leadership

The company continued to highlight leadership relative to time to market for latest technology based servers in the high growth AI servers market, as well as expected launch of Data Center Building Block Solutions (DCBBS), featuring their next generation Direct Liquid Cooling (DLC 2.0) capabilities, promising even more efficiency in terms of energy cost and TCO.

Valuation and Market Position

The valuation is considered extremely attractive for a company targeting AI/HPC end markets and at the forefront of liquid cooled data centers.

Negative Factors

Competitive Pressure

The company is facing an increasingly competitive AI Servers landscape driving aggressive pricing and gross margin pressures.

Customer Deployment Challenges

Customer push out of deployments was not limited to one or two customers and represents an ongoing challenge in relation to customers deciding between multiple platforms as well as datacenter readiness to accept shipments as planned.

Macro Uncertainty

The FY26 prior guide of $40 billion was not reaffirmed given macro uncertainty associated with tariffs and AI diffusion rules likely to impact growth trajectory.

Super Micro Computer Business Overview & Revenue Model

Company Description

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.

How the Company Makes Money

Super Micro Computer makes money primarily through the sale of its server and storage systems, which are tailored to meet the specific needs of various industries such as data centers, cloud computing, and enterprise IT. The company's revenue streams include direct sales to large enterprises, government agencies, and educational institutions, as well as through partnerships with value-added resellers and distributors. Additionally, SMCI generates income from providing related services such as technical support, system integration, and maintenance. Key factors contributing to its earnings include its focus on high-performance, energy-efficient technologies and its ability to offer customizable solutions that address the needs of a diverse customer base.

Super Micro Computer Financial Statement Overview

Summary

Super Micro Computer shows robust financial health with impressive revenue and profit growth, strong operational efficiency, and a stable balance sheet. The cash flows are positive but have some historical variability, which slightly tempers the overall financial performance.

Income Statement

Super Micro Computer has demonstrated robust revenue growth, with a significant increase from $3,557 million in 2021 to $21,569 million in TTM (Trailing-Twelve-Months) 2025, highlighting strong market demand and expansion. The company's gross profit margin improved, reflecting effective cost management. EBIT and EBITDA margins are strong, indicating solid operational efficiency. The net profit margin is also high, showcasing profitability.

Balance Sheet

The balance sheet shows a healthy equity position with stockholders' equity increasing over time, enhancing the equity ratio. The debt-to-equity ratio is moderate, suggesting manageable leverage. Return on Equity (ROE) is strong, driven by high net income, indicating efficient use of equity. Overall, the balance sheet reflects stability with a solid asset base.

Cash Flow

Cash flow analysis reveals improvements in operating cash flow, though historical volatility is evident. The free cash flow to net income ratio indicates effective cash generation from earnings. However, the free cash flow growth rate shows fluctuations, reflecting investment activities and capital expenditures. While positive, cash flows could be more consistent.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	21.57B	14.99B	7.12B	5.20B	3.56B	3.34B
Gross Profit	2.43B	2.06B	1.28B	800.00M	534.54M	526.21M
EBITDA	1.38B	1.27B	796.05M	335.17M	152.13M	114.13M
Net Income	1.15B	1.15B	640.00M	285.16M	111.86M	84.31M
Balance Sheet
Total Assets	10.74B	9.83B	3.67B	3.21B	2.24B	1.92B
Cash, Cash Equivalents and Short-Term Investments	2.54B	1.67B	440.56M	267.70M	232.27M	210.53M
Total Debt	2.45B	2.17B	290.30M	596.76M	98.19M	53.81M
Total Liabilities	4.36B	4.41B	1.70B	1.78B	1.15B	852.94M
Stockholders Equity	6.38B	5.42B	1.97B	1.43B	1.10B	1.07B
Cash Flow
Free Cash Flow	35.58M	-2.61B	626.79M	-485.98M	64.94M	-74.67M
Operating Cash Flow	154.10M	-2.49B	663.58M	-440.80M	122.95M	-30.33M
Investing Cash Flow	-166.81M	-194.25M	-39.49M	-46.28M	-58.02M	-43.59M
Financing Cash Flow	433.56M	3.91B	-448.29M	522.87M	-44.44M	23.80M

Super Micro Computer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMCI, the sentiment is Positive. The current price of 48.56 is above the 20-day moving average (MA) of 44.69, above the 50-day MA of 40.87, and above the 200-day MA of 38.11, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 60.03 is Neutral, neither overbought nor oversold. The STOCH value of 75.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMCI.

Super Micro Computer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	79 Outperform	$21.49B	18.90	108.51%	1.94%	5.02%	22.19%
SMCI	77 Outperform	$28.98B	26.80	21.03%	―	82.10%	6.35%
PSTG	76 Outperform	$18.61B	153.20	9.76%	―	10.85%	30.85%
Sector *	69 Neutral	¥229.24B	14.26	7.64%	2.72%	9.14%	8.60%
WDC	63 Neutral	$23.05B	12.56	28.45%	0.15%	21.22%	―
HPQ	61 Neutral	$24.42B	10.02	84.33%	4.45%	2.08%	-12.41%
STX	61 Neutral	$31.71B	21.59	-109.27%	1.93%	36.29%	―

Super Micro Computer Corporate Events

Supermicro Completes $2.3 Billion Convertible Notes Sale

On June 26, 2025, Supermicro completed the sale of $2.3 billion in Convertible Senior Notes due 2030, including an additional $300 million from the initial purchasers’ option. The net proceeds of approximately $2.26 billion will be used for capped call transactions, share repurchases, and general corporate purposes. The Convertible Notes, which do not bear regular interest, are senior unsecured obligations and can be converted into cash or shares of the company’s common stock. The company also entered into capped call transactions to reduce potential dilution and offset cash payments upon conversion. These financial maneuvers are expected to support Supermicro’s growth and business expansion.

The most recent analyst rating on (SMCI) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Super Micro Computer stock, see the SMCI Stock Forecast page.

Super Micro Computer Announces $2B Convertible Notes Offering

On June 23, 2025, Super Micro Computer announced its intention to offer $2.0 billion in convertible senior notes due 2030, subject to market conditions. This financial move, which includes an option for initial purchasers to acquire an additional $300 million, aims to strengthen the company’s financial standing and potentially impact its market positioning.

The most recent analyst rating on (SMCI) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Super Micro Computer stock, see the SMCI Stock Forecast page.

Super Micro Computer Announces Amendments to Compensation Plan

At the Annual Meeting of Stockholders on June 4, 2025, Super Micro Computer, Inc. announced the approval of amendments to its 2020 Equity and Incentive Compensation Plan. This includes an increase of 18,000,000 shares available for awards and updates to whistleblower protection language. The meeting also saw the election of two Class III Directors, approval of executive compensation, and the ratification of BDO USA, P.C. as the company’s independent auditor.

The most recent analyst rating on (SMCI) stock is a Sell with a $32.00 price target. To see the full list of analyst forecasts on Super Micro Computer stock, see the SMCI Stock Forecast page.