Super Micro Computer (SMCI) AI Stock Analysis

• Market Cap: $25.81B
• Dividend Yield: N/A
• Average Volume (3M): 39.65M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 3.14
• Revenue Growth: 47.04%
• EPS Growth: -17.89%
• Country: US
• Employees: 5,684
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): 0.41
• Shares Outstanding: 596,817,600
• 10 Day Avg. Volume: 39,452,684
• 30 Day Avg. Volume: 39,646,278
• PEG Ratio: -2.41
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 18.99
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 12.42
• Enterprise Value/Ebitda: 21.88
• 1Y Price Target: $45.57
• Price Target Upside: 7.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 66 Neutral
• Price Target: $49.00 ▲(15.81% Upside)

Super Micro Computer's overall stock score reflects strong revenue growth and strategic initiatives in AI and global expansion, which are tempered by challenges in profitability margins and increased leverage. The company's improved cash flow position and recent corporate events provide financial flexibility, but technical indicators suggest caution in the short term. The stock's valuation is moderate, with a focus on reinvestment over dividends.

Positive Factors

Market Expansion

Super Micro is on track to serve six to eight large scale data center customers in FY26 versus four in FY25.

Product Innovation

Launch of Data Center Building Block Solutions promises the fastest time-to-market and time-to-online, extending the company's leadership in delivering advanced technical solutions.

Negative Factors

Competitive Pressure

Competitor Dell Technologies is gaining market share in AI servers.

Financial Performance

Revenues and margins disappoint.

Revenue Growth Limitations

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 generates revenue through the sale of its hardware products, including server systems, components, and related accessories. The company's primary revenue streams include direct sales to large enterprises, cloud service providers, and value-added resellers. Additionally, SMCI earns revenue through service and support contracts, providing maintenance, installation, and consulting services to its customers. Strategic partnerships with major technology companies and suppliers enhance its product offerings and market reach, contributing to its overall earnings. The growing demand for data center solutions and cloud infrastructure has also positively impacted the company's financial performance.

Super Micro Computer Financial Statement Overview

Summary

Super Micro Computer shows strong financial health with significant revenue growth, improved profit margins, and a solid balance sheet. However, cash flow variability slightly tempers the overall financial score.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.57B	21.97B	14.99B	7.12B	5.20B	3.56B
Gross Profit	2.43B	2.43B	2.06B	1.28B	800.00M	534.54M
EBITDA	1.38B	1.33B	1.27B	796.05M	335.17M	152.13M
Net Income	1.15B	1.05B	1.15B	640.00M	285.16M	111.86M
Balance Sheet
Total Assets	10.74B	14.02B	9.83B	3.67B	3.21B	2.24B
Cash, Cash Equivalents and Short-Term Investments	2.54B	5.17B	1.67B	440.56M	267.70M	232.27M
Total Debt	2.45B	4.76B	2.17B	290.30M	596.76M	98.19M
Total Liabilities	4.36B	7.72B	4.41B	1.70B	1.78B	1.15B
Stockholders Equity	6.38B	6.30B	5.42B	1.97B	1.43B	1.10B
Cash Flow
Free Cash Flow	35.58M	1.53B	-2.61B	626.79M	-485.98M	64.94M
Operating Cash Flow	154.10M	1.66B	-2.49B	663.58M	-440.80M	122.95M
Investing Cash Flow	-166.81M	-183.21M	-194.25M	-39.49M	-46.28M	-58.02M
Financing Cash Flow	433.56M	2.02B	3.91B	-448.29M	522.87M	-44.44M

Super Micro Computer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMCI, the sentiment is Negative. The current price of 42.31 is below the 20-day moving average (MA) of 50.28, below the 50-day MA of 48.86, and above the 200-day MA of 39.12, indicating a neutral trend. The MACD of -2.12 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMCI.

Super Micro Computer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	78 Outperform	$21.84B	19.24	108.51%	1.92%	5.02%	22.19%
STX	76 Outperform	$33.59B	23.33	-109.27%	1.81%	38.86%	337.22%
WDC	74 Outperform	$26.32B	15.72	25.98%	0.13%	2.12%	―
PSTG	71 Outperform	$18.70B	149.43	9.76%	―	10.85%	30.85%
HPQ	69 Neutral	$25.36B	10.41	84.33%	4.32%	2.08%	-12.41%
SMCI	66 Neutral	$25.81B	25.71	17.90%	―	47.04%	-17.89%
Sector *	48 Neutral	C$3.32B	0.26	-6.09%	7.64%	9.19%	-16.12%

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.

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.

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.

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.