SMCI
Super Micro Computer, Inc.

Super Micro Computer, Inc.SMCI

Technology · Computer Hardware
28.76USD
+6.20%
Nov 08, 2026
SMCI overview ready
Configurable AI Servers and Rack-Scale Systems for Hyperscale AI
SMCI is a direct provider of configurable AI servers and rack-scale systems, including liquid-cooled GPU platforms and associated integration, validation, manufacturing, and deployment capabilities.
Primary theme is lagging
AI Infrastructure is lagging (-29.6pp vs SPY over 21 sessions; 0 of 16 members ahead of SPY).
Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Fair valuation
The price broadly reflects the strength of its balance sheet, with upside and risk reasonably balanced.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Intense competition from larger server and hardware providers.
Market Nov 6Filing Sep 30Price action Nov 7Research Oct 6

Conviction Level

PriceAction3.4BusinessPerformance7.0BusinessQuality5.3Valuation3.5ThemeMomentum1.0Improving — Revenue growth has accelerated, rising from +93% to +298% year over year. Diluted EPS growth has strengthened to +573% year over year ($1.75), up from +18%. That earnings comparison is against a weak year-ago quarter. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−29.6pp
Theme return
−34.5%
Beating SPY
0 of 16
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$19.0B
Avg Volume (60D)
38.9M
60 sessions
Revenue Growth YoY
+77.8%
FY2026 vs FY2025
Gross Margin
+11.7%
Trailing twelve months
Operating Margin
+8.6%
Trailing twelve months
Free Cash Flow Yield
-34.3%
Distance from 200DMA
-11.8%
Next Earnings
2027-02-02
P/E
5.2x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue growth has accelerated, rising from +93% to +298% year over year. Diluted EPS growth has strengthened to +573% year over year ($1.75), up from +18%. That earnings comparison is against a weak year-ago quarter.

Latest reported: Q1 FY2027, ended Sep 30
Revenue growthAccelerating
+298%
$19.9B in Q1 FY2027 · YoY
YoY growth, last 4 quarters
  1. +123%
  2. +123%
  3. +93%
  4. +298%
Earnings growthAccelerating
+573%
Diluted EPS $1.75 vs $0.26 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +18%
  2. +324%
  3. +423%
  4. +573%
Operating marginExpanding
10.3%
+6.7 pp YoY · gross margin 12.7% (+3.4 pp)
The comparison is against a weak year-ago quarter
Profit is not fully converting to cash
The share count is rising

Business Quality

5.3 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

0 of the one valuation perspectives say fair; peers is the dissenting view.
Super Micro Computer, Inc. has a Fair valuation stance because the price broadly reflects the strength of its balance sheet, with upside and risk reasonably balanced.

What changed

  • Super Micro Computer, Inc. — 8-K (items 2.02, 8.01, 9.01)
    Reported on 8-K, dated 2026-11-03.
    2026-11-03 · source
  • SMCI rose 9.6% in one session
    SMCI closed +9.6% while the broad market was close to flat (+0.5%).
    2026-10-21
  • Super Micro Computer, Inc. — 8-K (items 2.02, 9.01)
    Reported on 8-K, dated 2026-10-20.
    2026-10-21 · source
  • SMCI fell 9.9% in one session
    SMCI closed -9.9% while the broad market was close to flat (-1.1%).
    2026-10-16

Company Research

Thesis
SMCI is a direct provider of configurable AI servers and rack-scale systems, including liquid-cooled GPU platforms and associated integration, validation, manufacturing, and deployment capabilities.
Opportunity
High opportunity
Deployment of accelerator-dense AI infrastructure through integrated GPU servers, rack-scale systems, storage, networking integration, power delivery, and liquid-cooling-ready designs for hyperscale, cloud, sovereign, and enterprise AI clusters.
Key risk
Intense competition from larger server and hardware providers.

Economic classification

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Business & Markets

Technology · Computer Hardware
What they do

Super Micro Computer, Inc. designs, manufactures, and sells server and storage solutions based on modular and open-standard architectures globally, focusing on configurable AI and data center infrastructure.

How it earns

The company generates revenue primarily through transactional sales of hardware systems and integrated solutions to enterprise, cloud, and hyperscale customers.

Products & services
Liquid and air-cooled AI servers with integrated GPUs or PCIe architectures
Blade and multi-node systems (SuperBlade, MicroBlade, FlexTwin, GrandTwin, BigTwin)
SuperStorage systems
Rackmount systems (Hyper, CloudDC, WIO)
Embedded systems for 5G, IoT, and Edge computing
MicroCloud server systems
Customers & end markets
Hyperscale cloud providers
Enterprise data centers
Sovereign and government AI clusters
Telecommunications and edge computing markets
Market position

Niche provider specializing in configurable AI and rack-scale server systems with liquid-cooling capabilities.

Demand drivers
Medium cyclicality

Demand is influenced by enterprise and cloud capital expenditure cycles tied to AI infrastructure investments.

Peers

Companies validated as economically comparable to SMCI — similar business, revenue model and scale.
PRICE ACTIONVALUATIONTHEME
Dell Technologies Inc.Extended Trend — Distribution PressureFair6.5MediumUnavailableNot in RS poolLocked$328.53+3.67%