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Super Micro Computer (SMCI)
NASDAQ:SMCI
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Super Micro Computer
(NASDAQ:SMCI)
71Outperform
Positive Factors
Market Position
Supermicro is recognized as a leading player in providing GPU-as-a-Service to cloud providers and enterprises, expected to benefit from AI infrastructure trends.
Technological Innovation
The company continues to highlight leadership in the AI server market with the upcoming launch of Data Center Building Block Solutions, featuring next-generation Direct Liquid Cooling capabilities for enhanced efficiency.
Negative Factors
Competitive Pressures
The increasingly competitive AI server landscape is putting pressure on margins due to aggressive pricing strategies.
Macroeconomic Uncertainty
Macroeconomic factors, including tariffs and AI diffusion rules, contribute to uncertainty and may impact growth trajectory.
Revenue Challenges
Customer deployment pushouts and data center readiness issues pose ongoing challenges, affecting the company's revenue expectations.
Super Micro Computer (SMCI) vs. S&P 500 (SPY)
Market Cap
$19.66B
Dividend YieldN/A
Average Volume (3M)48.30M
Price to Earnings (P/E)14.4
Beta (1Y)3.00
Revenue Growth82.10%
EPS Growth6.35%
CountryUS
Employees5,684
SectorTechnology
Sector Strength65
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.31
Shares Outstanding596,789,300
10 Day Avg. Volume49,527,934
30 Day Avg. Volume48,296,883
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.64
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.67Price Target Upside19.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Super Micro Computer Business Overview & Revenue Model
Company DescriptionSuper Micro Computer, Inc. (SMCI) is a global leader in high-performance, high-efficiency server technology and innovation. The company operates in the technology hardware sector, specializing in the design, manufacturing, and sale of energy-efficient, application-optimized server solutions. Its core products include a comprehensive range of server systems, storage solutions, and networking products, which are used in various industries including data centers, cloud computing, and enterprise IT.
How the Company Makes MoneySuper 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 strong revenue and profit growth, with robust operational efficiency. The balance sheet is solid, despite a slight increase in liabilities, and showcases effective use of equity. However, cash flow challenges, such as negative operating and free cash flow, present a risk to long-term growth sustainability.Income Statement
Super Micro Computer has demonstrated remarkable revenue growth, nearly doubling its total revenue from 2022 to 2024. The gross profit margin and net profit margin are strong, with the latter significantly improving over recent years, reflecting enhanced profitability. EBIT and EBITDA margins are also robust, indicating effective cost management and operational efficiency. Overall, the income statement reflects a strong growth trajectory and profitability enhancement.88
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a solid equity base, as seen in the rising stockholders' equity. The debt-to-equity ratio remains relatively low, highlighting a conservative leverage approach. However, the equity ratio demonstrates a dip, suggesting increased liabilities. Despite this, the company has improved its return on equity, showcasing effective utilization of shareholder funds. Overall, the balance sheet illustrates financial stability with moderate leverage risk.75
Positive
Cash Flow
The cash flow statements reveal some challenges, primarily with negative operating cash flow and free cash flow over recent periods. This could indicate issues with cash generation despite profitability. However, the company has managed to maintain positive financing cash flow, suggesting reliance on external financing. The free cash flow to net income ratio highlights a disconnect between earnings and cash flow generation. While growth is evident, the cash flow needs careful monitoring to sustain long-term growth.65
Positive
| 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 | EBIT |
| 1.21B | 761.14M | 335.17M | 92.93M | 58.59M | EBITDA |
| 1.27B | 796.05M | 335.17M | 152.13M | 114.13M | Net Income Common Stockholders |
| 1.15B | 640.00M | 285.16M | 111.86M | 84.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.67B | 440.56M | 267.70M | 232.27M | 210.53M | Total Assets |
| 9.83B | 3.67B | 3.21B | 2.24B | 1.92B | Total Debt |
| 2.17B | 290.30M | 596.76M | 98.19M | 29.40M | Net Debt |
| 504.38M | -150.16M | 329.37M | -134.08M | -181.13M | 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
Negative
32.48
Price Trends
35.92
Negative
36.04
Negative
40.57
Negative
Market Momentum
-0.83
Negative
45.03
Neutral
41.24
Neutral
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 32.48 is below the 20-day moving average (MA) of 33.17, below the 50-day MA of 35.92, and below the 200-day MA of 40.57, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMCI.
Super Micro Computer Risk Analysis
Super Micro Computer disclosed 63 risk factors in its most recent earnings report. Super Micro Computer reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Super Micro Computer Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $15.60B | 155.54 | 8.29% | ― | 11.92% | 74.08% | |
71 Outperform | $19.66B | 14.37 | 21.02% | ― | 82.10% | 6.35% | |
70 Outperform | $19.04B | 17.23 | 114.33% | 2.25% | 5.46% | 23.49% | |
69 Neutral | $15.54B | 8.56 | 28.45% | ― | 21.22% | ― | |
66 Neutral | $19.93B | 13.52 | -109.27% | 3.02% | 36.29% | ― | |
63 Neutral | $24.16B | 9.31 | 84.33% | 4.37% | 1.03% | -18.56% | |
60 Neutral | $10.77B | 10.41 | -6.71% | 2.99% | 7.69% | -13.12% |
* Technology Sector Average
Performance Comparison
SMCI
Super Micro Computer
32.11
-47.86
-59.85%
HPQ
HP
26.33
-2.32
-8.10%
NTAP
NetApp
94.44
-11.69
-11.01%
STX
Seagate Tech
96.30
7.24
8.13%
WDC
Western Digital
44.30
-10.17
-18.67%
PSTG
Pure Storage
48.98
-5.13
-9.48%
Super Micro Computer Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q3-2025)
| % Change Since: -1.40%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with strong year-over-year growth and strategic advancements in AI products and global operations. However, the challenges with quarterly revenue decline, decreased EPS, and lower gross margins, primarily due to inventory and platform transition issues, tempered the positive achievements.Q3-2025 Updates
Positive Updates
Strong Revenue Growth Year-Over-Year
Fiscal Q3 2025 revenues were $4.6 billion, up 19% year-over-year.
Volume Shipments of New AI Products
Achieved volume shipments of air-cooled 10U and liquid-cooled 4U NVIDIA B200 HGX systems, AMD MI-325X solutions, and GB200 NVL72 racks.
Introduction of DCBBS
Launched Datacenter Building Block Solutions (DCBBS) featuring second-generation system liquid cooling technology, offering up to 30% lower TCO and reducing power consumption, space, and water usage.
Expansion of Global Operations
Expanded operations in Malaysia, Taiwan, and Europe, with new facilities in the Midwest U.S., aiming to meet rising demand and enhance quality and security.
Improved Cash Position
Closing Q3 balance sheet cash position was $2.54 billion, resulting in a net cash position of $44 million versus a negative net cash position of $479 million last quarter.
Negative Updates
Quarterly Revenue Decline
Fiscal Q3 2025 revenues were down 19% quarter-over-quarter, driven by delayed customer commitments due to AI platform transitions.
Decreased Non-GAAP EPS
Fiscal Q3 non-GAAP EPS stood at $0.31 per share, compared to $0.66 last year, largely due to a one-time inventory write-down.
Lowered Gross Margin
Q3 non-GAAP gross margin was 9.7%, down 220 basis points quarter-over-quarter from 11.9% in Q2, influenced by higher inventory reserves and lower volumes.
Inventory and Platform Transition Challenges
Faced challenges with inventory reserves for older generation products and the transition between AI platforms, impacting sales and margins.
Macroeconomic and Tariff Uncertainties
Macroeconomic conditions and tariff impacts contributed to challenges in precisely forecasting and setting margin expectations.
Company Guidance
During the Super Micro Computer, Inc. Q3 2025 earnings call, the guidance provided highlighted several key metrics and future expectations. The company reported Q3 fiscal net revenue of $4.6 billion, marking a 19% year-over-year increase but a 19% decrease from the previous quarter, primarily due to delayed customer commitments amid technology transitions from Hopper to Blackwell GPUs. This delay impacted their non-GAAP EPS, which stood at $0.31, down from $0.66 the previous year, largely due to a one-time inventory write-down of older-generation GPUs. Looking ahead, Supermicro expects Q4 revenues between $5.6 billion and $6.4 billion, with a non-GAAP EPS forecast of $0.40 to $0.50. The company remains confident about its long-term growth trajectory, despite macroeconomic uncertainties, and anticipates that new innovations in AI infrastructure, such as their Datacenter Building Block Solutions (DCBBS) and the upcoming DLC-2 technology, will enhance their market position. They project fiscal year 2025 revenues to range from $21.8 billion to $22.6 billion, driven by strong demand for their new Blackwell platforms and DCBBS solutions.Super Micro Computer Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Supermicro Announces Leadership Changes to Drive Growth
Positive
Mar 31, 2025
On March 31, 2025, Supermicro announced significant changes to its Board of Directors and senior leadership team to bolster its growth strategy. Scott Angel, with extensive experience in accounting and the technology sector, was appointed as an independent director, while Yitai Hu, a seasoned legal expert, was promoted to General Counsel. These appointments are aimed at supporting Supermicro’s continued expansion and leadership in the AI revolution, enhancing its risk and compliance capabilities, and aligning its legal department with the company’s growth ambitions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.