The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 41 | 22.9x | 20.1x | Near average | |
Growth | 71 | 56.2% | 5.6% | Above average | |
Quality | 41 | 24.3% | 7.6% | Near average | |
Safety | 77 | -0.9x | 0.4x | Above average | |
Capital Return | 41 | — | 2.19% | Near average | |
Momentum | 27 | — | — | Below average | |
Sentiment | 42 | — | — | Near average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
SMCI stock has witnessed a notable decline in the average price target by 16.6% over the past 30 days, dropping from 46.29 to 38.6, reflecting a negative reassessment by analysts despite a slight improvement in consensus during the last week due to 3 new analysts initiating coverage. A significant price gap (Dispersion) is observed between the high of 45 and the low of 26, indicating a state of high uncertainty regarding the stock's fair valuation.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Super Micro Computer, Inc. (Ticker: SMCI) is a global leader in the design and manufacture of high-performance, energy-efficient server and storage solutions. Its business model is based on providing integrated data center infrastructure through its "Data Center Building Block Solutions" (DCBBS) platform. The company generates its revenue primarily from the sale of servers optimized for generative artificial intelligence, direct liquid cooling (DLC) systems, data center management software, and consulting services to enterprise customers and modern cloud service providers (NeoCloud).
During the third quarter of fiscal year 2026, the company achieved revenue of $10.2 billion, representing massive growth of 123% year-over-year, while recording a decline of 19% compared to the previous quarter due to delays in customer site readiness to receive shipments. Third-quarter net income was $483.4 million, with GAAP earnings per share of $0.72, while the non-GAAP gross margin jumped significantly to 10.1% compared to 6.4% in the second quarter, supported by an improved product mix and a decline in customs tariffs and expedited shipping costs.
Operationally, the AI server segment contributed more than 80% of total third-quarter revenue. The quarter saw diversification in sales channels, as the share of the Enterprise segment rose to $2.8 billion to represent 28% of revenue compared to 15% in the previous quarter, while the share of the OEM and large data centers segment declined to $7.4 billion to constitute 72% of revenue compared to 85% in the second quarter.
Super Micro Computer stock is currently trading at $46.88, which puts the company's market capitalization at $28.2 billion within a wide 52-week price movement range between $19.48 and $62.36. Based on the analyst consensus which stands at a "Hold" rating, the average price target is $38.6 (with a high of $45 and a low of $26), which means that the current stock price is trading above the average price target estimated by analysts.
Third-quarter revenue decreased to $10.2 billion compared to $12.7 billion in the second quarter due to delays in customer site readiness to receive shipments because they lacked sufficient power and networking. Management confirmed that this delay is temporary and short-term, and expects to recognize this deferred revenue during the coming quarters as soon as sites are ready and supplies are available.
Management clarified that Super Micro is not a defendant or a target of the grand jury investigation, and that the case relates to the individual conduct of persons whose relationship with the company was terminated immediately. Independent board members appointed the law firm Munger, Tolles & Olson and the firm AlixPartners to conduct an independent forensic investigation, and current indications confirm that there is no need to restate previous financial statements.
Data Center Building Block Solutions (DCBBS) include providing an integrated package that includes cooling units, networking, management software such as SuperCloud Composer, and backup power systems. These solutions contribute to achieving profit margins exceeding 20%, and management expects them to contribute 20% of the company's net profits over the next two years, eventually reaching more than 25% of total profits.
Automated analysis for informational purposes only — not investment advice.
The company recorded cash usage in operating activities of $6.6 billion as a result of paying $10 billion of outstanding accounts payable, in addition to an increase in inventory volume by $581 million to reach $11.1 billion. The reduction in accounts receivable by $2.6 billion only contributed to offsetting a small part of this cash deficit.
The company targets net sales ranging between $11 billion and $12.5 billion for the fourth quarter ending June 30, 2026, with non-GAAP diluted earnings per share ranging between $0.65 and $0.79 and a gross profit margin between 8.2% and 8.4%. As for the full fiscal year 2026, the company expects revenue ranging between $38.9 billion and $40.4 billion.