Super Micro Computer SMCI has been at the forefront of the AI infrastructure boom led by worldwide AI investments. Annual spending is surging, and long-term projections suggest that cumulative AI data center and infrastructure spending will double from its current level. SMCI’s large order pipeline supports its fiscal 2027 sales outlook. Super Micro Computer’s fiscal 2026 revenues rose 78% to $39.1 billion.
SMCI has more than $60 billion of new orders received during the fourth quarter of fiscal 2026. The company is benefiting from its emphasis on early availability of new AI systems as a competitive advantage. In fourth-quarter fiscal 2026, the company was shipping volume products across NVIDIA’s GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro lines. It is also preparing systems based on NVIDIA Vera Rubin, Vera CPU platforms, AMD, the Helios product line and the MI450 Total Solution.
Super Micro Computer is adding enterprise and channel customers. Enterprise and channel revenues represented 31% of fiscal 2026 sales and increased 39% year over year. In fourth-quarter fiscal 2026, the category accounted for 50% of revenue compared with 28% in the prior quarter, as customers upgraded compute, storage and networking infrastructure. SMCI is positioning itself as a one-stop provider for the infrastructure required to build and operate AI factories and modern data centers with its Data Centre Building Block Systems (DCBBS).
The portfolio includes liquid-cooling solutions, such as in-rack coolant distribution units (CDUs), chilled doors and cooling towers. The company says its in-rack CDUs can support cooling capacity of up to 250 kilowatts, while cooling towers can support between 1 and 50 megawatts. Such capabilities are increasingly important as high-performance AI systems generate substantially more heat than conventional computing workloads. Together, these factors make SMCI a solid business right now.
How Competitors Fare Against SMCI
SMCI is in competition with giants like Hewlett Packard Enterprise HPE and Dell Technologies DELL. Hewlett Packard Enterprise is providing enterprises with an integrated AI infrastructure portfolio spanning hardware, software and cloud management.
Hewlett Packard Enterprise combines compute, storage, networking and GreenLake platform with NVIDIA's GPUs, CPUs, networking technologies and AI Enterprise software. Dell Technologies, meanwhile, is pursuing a broader ecosystem strategy through its Dell AI Factory. Rather than focusing solely on servers, Dell is expanding across compute, storage, networking, automation and software. Dell recently introduced PowerEdge R9822 and M9822 servers.
SMCI’s Price Performance, Valuation and Estimates
Shares of Super Micro Computer have gained 53.5% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 224.6%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI is trading at a discount at a forward 12 Month P/S multiple of 0.42X compared with the industry’s P/S multiple of 3.03X.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 20.4% and 17.5%, respectively. Estimates for fiscal 2027 and 2028 earnings have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Super Micro Computer currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).