Super Micro Computer, Inc. (SMCI) AI Stock Analysis

Super Micro Computer, Inc., and its subsidiaries specialize in the development and manufacturing of advanced server and storage solutions known for their high performance and modular, open architecture. Its product lineup spans complete servers, modular blade servers, storage systems, networking devices, and server management software such as Supermicro Server Manager and SuperCloud Composer. These offerings cater to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. The company also provides subsystems including server boards, chassis, and power supplies, alongside integration, configuration, software upgrade, and technical documentation services with global customer support.

Revenue expanded from $5.20B in FY2022 to $39.06B in FY2026, reflecting a 5-year revenue CAGR of 61.5%. Net income rose from $285.2M in FY2022 to $2.23B in FY2026, with diluted EPS increasing from $0.57 to $3.50. However, gross margin declined from 15.4% in FY2022 to 10.8% in FY2026, while operating margin shifted from 6.5% to 7.1% over the same period after peaking at 10.7% in FY2023. For the latest quarter ended June 30, 2026, quarterly revenue growth reached 93.2% year-over-year, and quarterly earnings grew 434.7% year-over-year. TTM revenue reached $39.06B with a profit margin of 5.7% and EPS of $3.26.

As of June 30, 2026, the company held $7.52B in cash and short-term investments against $6.68B in total debt, resulting in net cash of $841.0M. Shareholders' equity was $14.48B, and total assets stood at $29.95B. The balance sheet reflects a current ratio of 3.87 and a debt-to-equity ratio of 0.46. In FY2026, cash burn was substantial, with operating cash flow of -$6.81B and free cash flow of -$6.97B. Capital expenditures totaled $162.0M, while share buybacks were $996,000.

SMCI trades at a trailing P/E of 9.7x and a forward P/E of 10.2x, which sit below the median of its S&P 500 Technology peers at 31.5x and 20.9x, respectively. The company's price-to-sales ratio is 0.5x compared to the peer median of 6.3x, and its EV/EBITDA is 10.6x against the peer median of 19.9x. SMCI has a PEG ratio of 0.91 and a market capitalization of $20.78B. Over the past year, SMCI shares declined 41.3%, underperforming the SPY return of 16.8%, though its 5-year return of 792.5% exceeded the SPY return of 83.0%.

Consensus ratings include 2 Strong Buy, 2 Buy, 11 Hold, 1 Sell, and 2 Strong Sell recommendations. The mean price target is $42.27, representing a 33.6% premium over the last close of $31.63. For the current fiscal year ending June 30, 2027, analysts project revenue of $67.13B and EPS of $4.34, representing 19.5% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, and the next earnings date is November 3, 2026.

This page is an AI-written research summary of Super Micro Computer, Inc. (SMCI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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