Super Micro Computer (SMCI) AI Stock Analysis

• Market Cap: $32.51B
• Dividend Yield: N/A
• Average Volume (3M): 38.74M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 3.33
• Revenue Growth: 82.10%
• EPS Growth: 6.35%
• Country: US
• Employees: 5,684
• Sector: Technology
• Sector Strength: 91
• Industry: Computer Hardware
• EPS (TTM): 0.31
• Shares Outstanding: 596,817,600
• 10 Day Avg. Volume: 34,826,569
• 30 Day Avg. Volume: 38,739,710
• PEG Ratio: -1.33
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 892.93
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 13.01
• Enterprise Value/Ebitda: 5.35
• 1Y Price Target: $42.85
• Price Target Upside: -21.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $59.00 ▲(8.32%Upside)

Super Micro Computer's strong financial performance and strategic corporate events are key strengths, contributing positively to its stock score. However, technical analysis suggests potential near-term challenges due to overbought conditions, and valuation metrics indicate moderate attractiveness. Mixed sentiment from the earnings call and absence of a dividend yield add complexity to the investment outlook.

Positive Factors

Market Demand

A burgeoning sovereign/enterprise AI market supports broader industry demand.

Supply Chain

Management sounds constructive on materialization of current commitments as Blackwell GPU supply constraints ease.

Valuation and Governance

With filing risks behind the company, along with an attractive valuation, analysts are resuming coverage with a Buy.

Negative Factors

Competitive Landscape

Concerns on margins arise due to increased momentum and competitive efforts by DELL and HPE.

Litigation and Internal Controls

Litigation and investigations pose some headline risk as does the pace of management’s effort to address material weakness in internal controls.

Revenue and Component Availability

Availability of components such as GPUs and liquid cooling components may limit revenue growth.

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 diverse range of high-performance computing products and solutions. The company's revenue model is driven by the direct sales of server systems, components, and complete solutions to a broad customer base, including enterprises, data centers, and cloud service providers. SMCI also generates revenue through its global network of distributors, system integrators, and value-added resellers. Key revenue streams include server systems, storage solutions, and networking products. Significant partnerships with technology companies enhance its product offerings and market reach, which further contribute to its earnings. Additionally, the company benefits from its focus on innovation and efficiency, allowing it to maintain competitive pricing and capture market share in the rapidly evolving technology sector.

Super Micro Computer Financial Statement Overview

Summary

Super Micro Computer exhibits strong financial health with substantial revenue growth and robust profitability metrics. The balance sheet is solid, and cash flows, while positive, show some historical variability.

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

Super Micro Computer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 54.47 is above the 20-day moving average (MA) of 50.38, above the 50-day MA of 45.98, and above the 200-day MA of 38.69, indicating a bullish trend. The MACD of 2.21 indicates Positive momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 74.03 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
SMCI	78 Outperform	$32.51B	30.06	21.03%	―	82.10%	6.35%
PSTG	76 Outperform	$18.82B	154.98	9.76%	―	10.85%	30.85%
NTAP	74 Outperform	$21.03B	18.49	108.51%	1.98%	5.02%	22.19%
WDC	71 Outperform	$24.01B	13.08	28.45%	0.15%	21.22%	―
HPQ	66 Neutral	$24.12B	9.90	84.33%	4.45%	2.08%	-12.41%
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
STX	61 Neutral	$32.02B	21.80	-109.27%	1.90%	36.29%	―

Super Micro Computer Corporate Events

Super Micro Computer Enters Receivables Purchase Agreement

On July 16, 2025, Super Micro Computer, Inc. entered into a Receivables Purchase Agreement with MUFG Bank, Ltd., Crédit Agricole Corporate and Investment Bank, and other entities. This agreement allows the company to sell certain accounts receivable to the purchasers, with an initial facility limit of $1.79 billion. The agreement provides flexibility for the company to manage its receivables and potentially improve cash flow, which could enhance its operational efficiency and financial stability.

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.

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.