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 | Rank |
|---|---|---|---|---|---|
Valuation | 63 | 14.6x | 20.8x | Around median | |
Growth | 96 | 56.2% | 6.1% | Top tier | |
Quality | 32 | 12.7% | 6.6% | Bottom tier | |
Safety | 48 | 3.5x | 0.7x | Around median | |
Capital Return | 11 | — | 2.02% | Bottom tier | |
Momentum | 31 | -34.6% | 4.1% | Bottom tier | |
Sentiment | 88 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
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. (SMCI) operates as a leading provider of IT infrastructure solutions, designing and manufacturing advanced server systems and customized storage solutions for data centers and artificial intelligence. The company's business model relies on offering Data Center Building Block Solutions (DCBBS) that combine cutting-edge hardware, Direct Liquid Cooling (DLC) systems, and integrated management software like SuperCloud Composer, allowing customers to build and run AI factories with high efficiency and rapid Time-to-Online (TTO).
In the third quarter of fiscal year 2026 (ended March 31, 2026), the company achieved revenues of $10.2 billion, representing a 123% year-over-year growth and a 19% decline compared to the previous quarter due to delays in customer site readiness. Net income for the period was $483.4 million (with earnings per share of $0.72 on a GAAP basis and $0.84 on a non-GAAP basis), while the non-GAAP gross margin jumped significantly to 10.1% compared to 6.4% in the second quarter of the same year, driven by an improved product mix and a decrease in tariff and expedited shipping charges.
In terms of segment and customer distribution during the third quarter of fiscal year 2026, GPU-related AI platforms contributed more than 80% of total revenues. The Enterprise channel segment generated revenues of $2.8 billion (28% of the total), while the OEM and Large Data Centers segment revenues reached $7.4 billion (72% of the total). Geographically, revenues were concentrated in the United States at 69%, with two major customers each representing more than 10% of sales (one large data center customer at 27% and one enterprise customer at 10%).
Super Micro Computer, Inc. (SMCI) stock currently trades below the analysts' average price target of $38.6, with estimates ranging from a low of $26 to a high of $45. The current analyst consensus reflects a Neutral recommendation, as the market awaits clarity on the ongoing independent investigations and the stabilization of expected fourth-quarter gross margins between 8.2% and 8.4% in light of the massive capital increase plan.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The 19% quarter-over-quarter decline in revenue to $10.2 billion was mainly due to delays in customer data center site readiness, as these sites were not equipped with the necessary power and networking for cloud deployment. Super Micro's management considers this delay to be temporary and short-term, fully expecting to recognize and collect this deferred revenue in the coming quarters once the sites are ready.
Super Micro's management confirmed that it is neither a defendant nor a target in the federal grand jury investigation, and immediately terminated its relationship with the accused employees. Additionally, independent board members launched a comprehensive investigation with the assistance of Munger, Tolles & Olson and AlixPartners to ensure full trade compliance. The company clarifies that based on current data, there is no negative impact on supply allocation or the strategic relationship with key suppliers like NVIDIA.
Super Micro plans to raise $7 billion to fund growing demands for AI servers and meet the massive working capital requirements resulting from a long cash conversion cycle. This announcement triggered mixed reactions in the market, leading to concerns over dilution of existing shares and short-term selling pressure that led the S&P 500 losses, despite reflecting the massive scale of demand and expected growth for the company.
Automated analysis for informational purposes only — not investment advice.
Super Micro's non-GAAP gross margin experienced a significant recovery in the third quarter of fiscal 2026, rising to 10.1% compared to 6.4% in the second quarter, thanks to an improved product mix and the absence of exceptional expedited shipping charges. However, the company expects the gross margin to decline in the fourth quarter to range between 8.2% and 8.4% based on the expected customer mix for that period. In the long term, the company aims to achieve a sustainable double-digit margin model by increasing sales of profitable software and DCBBS solutions.
Super Micro focuses on shipping advanced systems based on NVIDIA processors such as the GB300 NVL72 and B200 NVL4, and is preparing to be among the first companies to bring the new Vera Rubin systems to market. The company is also developing the AMD MI350 platform and the upcoming Helios solutions featuring EPYC Venice and MI400 processors. Additionally, the software and subscription segment, such as SuperCloud Composer, contributes to improving long-term profitability after its bookings reached over $46 million in the last quarter.