Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.

SMCI’s strong business scale is combined with noticeable pressure on margin quality and liquidity, so the valuation looks less like a clear undervaluation and more like a trade-off between growth and risk. The P/E ratio of 14.48, P/S of 0.46, and P/B of 2.19 are noticeably below the industry median, which in itself supports the idea of moderate upside and suggests that the market is not pricing in an excessively expensive valuation. However, P/FCF of 74.32 is significantly above the industry level, which signals that free cash flow has not yet fully confirmed all of the earnings power. Debt burden has also increased: debt/equity of 0.88 is above the median, long-term debt has reached 6.68 billion, while cash on hand has fallen to 1.29 billion, weakening the balance sheet’s cushion. Liquidity remains acceptable, but no longer comfortable: the current ratio of 1.70 and quick ratio of 1.29 are below previous levels, so the working capital buffer has narrowed. The efficiency picture is mixed: ROE of 18.21% and ROI of 10.37% look solid, but ROA is around the median, while profitability margins are significantly weaker than the industry average. Gross margin of 8.39%, operating margin of 4.48%, and net margin of 3.70% indicate a low pricing cushion and high sensitivity to costs and competition. At the same time, revenue, gross profit, EBITDA, operating profit, and net income remain high in absolute terms and have generally increased compared with earlier periods, confirming business scaling. Shareholders’ equity has also increased to 7.58 billion, and net worth and ROE support the thesis that returns on capital remain intact. On the other hand, margin and liquidity trends have deteriorated relative to stronger prior quarters, so the fundamentals do not look sufficiently resilient for an aggressive upward re-rating. The absence of dividends means investors here are relying solely on business growth and revaluation, not on cash income from payouts. Overall, the fundamental picture is rather moderately positive, but with significant caveats regarding leverage, cash flow quality, and margin compression, so only a small conservative downward adjustment is appropriate.

Super Micro Computer, Inc.

SMCI looks inexpensive on P/E, P/S, and P/B, but weak margins, a high P/FCF, rising debt, and declining liquidity limit the revaluation potential.

Supermicro (NASDAQ: SMCI) still has enormous AI demand, but investors no longer trust that growth will translate into cash. Its next earnings report could reveal whether the 45% collapse created a compelling opportunity or exposed deeper financial and legal problems.
Stock prices used were the market prices of July 18, 2026. The video was published on July 28, 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 29, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should Investors Buy SuperMicro Stock Before Aug. 11?

Key Points
Super Micro said it received more than $60 billion of new orders in its fiscal fourth quarter, which ended June 30.
Revenue for the same quarter is expected to land near the low end of guidance, at about $11 billion.
The company cautions that some of the orders aren't firm commitments and could be canceled or delayed.
Last Tuesday, Super Micro Computer (NASDAQ: SMCI), the artificial intelligence (AI) server maker, disclosed that it received more than $60 billion of new orders during its fiscal fourth quarter, which ended June 30. The entire company, as of Friday's close, is valued at about $19.5 billion.
Numbers that lopsided invite a simple conclusion: The market must be asleep. But I don't think it is. The gap between what Super Micro booked and what investors will pay for it is a judgment about how hard it is to turn AI server orders into AI server profits, and about a couple of clouds still hanging over this company.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Let's take a look at what the update actually says.
A quarter of records, with an asterisk
The July 21 update was preliminary, ahead of full results scheduled for Aug. 11. But three disclosures stand out.
First, the orders. Super Micro said backlog rose to record levels, with total new orders in excess of $60 billion received during the quarter. And order flow accelerated as the period went on. In early June, the company had announced about $39 billion of AI server orders from more than 20 customers. By quarter's end, the total had grown by more than half again.
Second, the revenue. Super Micro expects fiscal fourth-quarter revenue of about $11 billion, near the low end of a guidance range that stretched to $12.5 billion. So in the same three months it booked $60 billion of orders, it billed about $11 billion. The company said the new orders "are expected to be delivered over future quarters."
Third, the profitability surprise. Gross margin is estimated at 15% to 17%, about double the 8.2% to 8.4% management had guided for, thanks to a favorable customer and product mix. That's arguably an encouraging sign for a business that has historically run on thin server margins. Still, one quarter of mix-driven strength doesn't establish a new normal.
Add it up, and Super Micro just booked roughly five times more business than it billed. Even at a delivery pace of $12 billion a quarter, $60 billion of orders represents more than a year of output -- and that's before counting whatever the company books next.
Why the market pays a third of one quarter's orders
So why does a tech company sitting on that much demand trade at about $30 per share, less than half its 52-week high, and at under 16 times earnings -- even with revenue up 56% over the trailing 12 months to $33.7 billion?
In the filing itself, Super Micro cautioned that some of the $60 billion in orders "may not constitute firm commitments and may be subject to cancellation or delays." Orders are not backlog, backlog is not revenue, and revenue is not profit. Each conversion can leak.
Then there's the cost of fulfillment. Building AI servers means buying expensive components upfront -- graphics processing units (GPUs), memory, and the rest -- long before customers pay. That's why June's $39 billion order announcement came paired with a proposed $7.0 billion of equity and equity-linked financing to fund component purchases -- dilution as the price of growth. Converting the larger order book will demand still more working capital.
Finally, there's the biggest cloud. Super Micro's board is conducting an independent review of certain transactions connected to alleged export-control issues, with two independent directors leading the work alongside outside counsel and forensic accountants. The company itself notes the outcome could affect its forecasts, these preliminary results, and even prior-period results. A multiple under 16 times earnings for a company growing this fast is the market pricing that uncertainty in, not ignoring the orders.
For investors, the order book is not the investment case. The conversion rate is. If the Aug. 11 report shows the backlog translating into strong fiscal 2027 revenue guidance (with margins holding up and the review contained), then a $19.5 billion market value set against $60 billion of quarterly bookings will start to look strange, and the stock could rerate quickly. If orders slip, margins revert, or the review deepens, the discount will have been the market's way of being right early.
I wouldn't treat five quarters' worth of booked demand as money in the bank until the company shows how much of it actually converts, and at what margin. Until it does, the market's cautious price at least reflects this uncertainty reasonably well.
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 28, 2026.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Super Micro Computer Booked More Than $60 Billion of Orders Last Quarter. The Entire Company Is Worth $19 Billion.

Key Points
Supermicro released preliminary numbers for the fourth quarter, which gave the stock a boost.
The stock is trading well below the high of more than $50 it reached earlier this year.
The company's troubled past, however, may give investors doubts.
Super Micro Computer (NASDAQ: SMCI), which also goes by Supermicro, has been rallying recently after disclosing encouraging preliminary earnings results. But despite the strong initial boost, the stock isn't likely to take off and return to the highs of more than $50 it reached earlier this year.
Although Supermicro's business may be showing signs of progress, tech investors should continue to tread carefully, as it's by no means a slam-dunk buy despite recent developments. Here's why.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Supermicro's preliminary numbers were mixed
On July 21, Supermicro released preliminary fourth-quarter numbers. While the full results won't come out until Aug. 11, it did give investors some key numbers beforehand:
Revenue will be at the low end of its guidance of $11 billion and $12.5 billion,
Gross margin will be within 15% to 17% (higher than its previous forecast of around 8%), and
The backlog has grown to record levels, and new orders exceeded $60 billion in Q4.
The big number that has investors bullish is the gross margin, which has typically been fairly low for Supermicro in the past and was just under 10% in the most recent quarter. However, even at 15% to 17%, that's still not terribly high. Meanwhile, the company's revenue is tracking slightly below expectations. So while the margin may be higher, if revenue isn't as strong, the overall impact on the bottom line may not be significant.
The stock looks cheap, but it warrants a discount
Supermicro's stock may look incredibly undervalued today. It's trading at just 16 times its trailing earnings, and that falls to a forward earnings multiple of nine, based on analyst earnings estimates for the year ahead. Investors may be inclined to believe it has tremendous upside, particularly with its opportunities in artificial intelligence (AI).
However, given Supermicro's tumultuous past, including a previous auditor resigning over concerns about policies and controls, and multiple people involved with the business, including its co-founder, charged with smuggling products to China, the stock deserves to trade at a discount. Not only are its margins light and its growth heavily dependent on demand from the AI build-out, but there are also significant concerns about its governance. A discount is warranted, and it offers investors a bit of a buffer.
Supermicro likely needs a major catalyst to convince investors it's worth buying, even at a seemingly modest valuation, and I don't think improving its margins in a single quarter will be enough.
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 28, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Giving Investors Great News, Is Super Micro Computer Stock Headed Back to $50?

Vertiv VRT is scheduled to report second-quarter 2026 results on July 29, with its Americas segment expected to remain the company’s primary growth engine. Robust investments in artificial intelligence (AI) infrastructure, accelerating hyperscale data center deployments and sustained demand for advanced power and thermal management solutions are likely to support another strong quarter for the region.
The Americas business has consistently outperformed Vertiv's other geographic segments over the past several quarters. In the first quarter of 2026, Americas revenues surged 53% year over year, while organic sales increased 44%, significantly outperforming APAC and EMEA. This robust performance was driven by broad-based demand across nearly all product lines, reflecting the region's dynamic data center market and Vertiv's ability to capture expanding opportunities.
Click here to know how VRT’s overall second-quarter performance is likely to be.
VRT Benefits From Manufacturing and Cooling Portfolio
VRT’s expanding portfolio and acquisitions are expected to have driven growth in the to-be-reported quarter. Strategic acquisitions, such as PurgeRite, have strengthened Vertiv’s liquid cooling and system-level service offerings, which are critical for modern data centers.
Vertiv Holdings Co. Revenue (TTM)
The integration of solutions like SmartRun and OneCore enables the company to deliver converged, prefabricated systems at scale, supporting higher margins and differentiating the company from competitors like Super Micro Computer SMCI and Amphenol APH, which are expanding their offerings to support high-density, AI-driven data center deployments.
Another important growth driver is Vertiv’s expanding manufacturing footprint across North America. In June 2026, Vertiv launched PurgeRite NearZero, a fluid management service for commissioning closed-loop hydronic systems in data centers and mission-critical facilities in North America. The solution reduces water usage, wastewater generation and hauling requirements, thereby improving efficiency and sustainability during system commissioning.
The company has provided guidance that reflects continued confidence in the Americas’ ability to drive results. The company projects net sales at the midpoint of $3.35 billion, representing 27% year-over-year growth, and adjusted operating profit at the midpoint of $710 million, up 45% year over year. The Americas’ contribution is expected to remain significant, as the region’s pipeline continues to expand and the company converts opportunities into revenue. The Zacks Consensus Estimate for Americas revenues is pegged at $2.32 billion, representing a 28.4% sequential increase.
VRT Benefits From Strong International Expansion
Vertiv is benefiting from strong international expansion, which is increasingly becoming a key driver of its growth and a signal for further upside potential. This broad-based international momentum demonstrates Vertiv’s ability to capture demand in diverse markets, positioning the company to leverage global infrastructure trends, especially in data centers and AI deployments.
The positive impact of international expansion is also evident in Vertiv’s customer wins and collaborations. In the first quarter of 2026, Vertiv’s converged infrastructure solutions were selected by EcoDataCenter’s AI-focused data center in Sweden, highlighting the company’s ability to deliver advanced, integrated solutions for demanding global clients. This trend is expected to have continued in the to-be-reported quarter.
Further expanding its international footprint, the company recently announced investments at its Tognana campus near Padua, Italy, to expand manufacturing and testing capabilities for AI-ready data center cooling systems.
The expansion is expected to double regional chiller production capacity by the end of 2026 and add a large-scale testing laboratory in early 2027 to validate chillers integrated with liquid cooling systems under high-density AI workloads. The investment strengthens Vertiv’s ability to meet growing demand for AI and high-performance computing infrastructure while accelerating product development, testing and customer deployment of advanced thermal management solutions.
VRT Benefits From Rich Partner Base
Vertiv’s rich partner base, which includes Hut 8, NVIDIA NVDA, Generate Capital, Caterpillar, Ballard Power Systems, Compass Datacenters, Oklo, Intel, ZincFive and Tecogen, has been noteworthy.
The company’s partnership with NVIDIA has been a key catalyst. Vertiv recently deployed integrated power, liquid cooling, rack infrastructure and installation services to support the Naval Postgraduate School’s new NVIDIA DGX GB300 AI system. The project modernizes an existing facility with a three-rack Vertiv SmartIT configuration, enabling high-density AI computing for research, modeling and simulation. The deployment highlights Vertiv’s ability to accelerate enterprise AI infrastructure rollouts with scalable, pre-engineered solutions.
Zacks Rank & Upcoming Earnings to Watch
Vertiv currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VRT’s peers, Super Micro Computer and Amphenol, are set to report their respective quarterly earnings on Aug. 8, while Amphenol will report on July 29.
Shares of Super Micro Computer and Amphenol have gained 2.8% and 12.9% in the year-to-date period, respectively.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Vertiv's Americas Business Boost Second-Quarter Results?

Key Points
Super Micro recently released preliminary figures suggesting that its upcoming quarterly results will be strong.
Its margins are far higher than expected due to the customer and product mix.
The stock got a boost from the news, but its returns this year remain modest.
Excitement is building around Super Micro Computer (NASDAQ: SMCI) as the company recently announced preliminary numbers showing that its margins will be far better than expected for the current quarter. Its latest earnings numbers are set to come out on Aug. 11, and if margins are stronger and the business is still experiencing considerable growth due to artificial intelligence, then odds are, it'll be a fantastic quarter for the company.
Does this mean it's a good time to buy shares of Super Micro?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Low margins have been a big problem for Super Micro
Investors should always pay attention to gross profit margins because they can make or break a company's hopes of profitability. Low margins mean the company's cost of goods sold is high relative to revenue, suggesting it may not be charging enough for its products and services. While low margins can still lead to profitability, the company needs to have high sales volumes and lean operations.
In recent years, Super Micro's gross margins have actually been worsening, which is an even more troubling sign for investors. Even though it has been generating more revenue, with lower margins, its bottom line hasn't shown nearly as much improvement.
Last week, Super Micro released preliminary numbers for the fourth quarter (which ended on June 30), and its margins are going to be within a range of 15% to 17%, which is far higher than its guidance of around 8% and where its margins were last quarter (around 10%). It credits the improvement to the customer and product mix.
Is Super Micro's stock likely to soar after earnings?
After announcing the preliminary numbers, Super Micro's stock jumped to more than $30 -- the highest level it's closed at since late June. It wasn't a huge rally, and the stock is still only up around 3% for the year, but it is nonetheless a sign of renewed excitement around the business.
While the news is encouraging, it may be wise to wait until after earnings to make a decision. I'd like to see more details about why its margins changed so drastically. The improvement is great, but the big question is whether it's sustainable and a sign of higher margins in the future, or if this will prove to be just temporary.
A single quarter is just that, and without understanding the full reasons behind the gross margin improvement and whether it's likely to continue, investors may still be better off waiting on the sidelines and taking a wait-and-see approach with the tech stock.
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Super Micro Computer Stock Before Aug. 11?

Key Points
Supermicro saw a big improvement in margins, but the stock remains shrouded in controversy.
The news from Supermicro should bode well for Nvidia, which is the safer and smarter stock to buy.
Super Micro Computer (NASDAQ: SMCI) shares surged nearly 20% on July 22 after the company pre-announced strong preliminary results. While its second-quarter revenue is expected to come in toward the low end of its $11 billion to $12.5 billion range, that is still about double the revenue it generated a year ago. More importantly, it projected that its gross margins would rise to a range of 15% to 17%, well above its 8.2% to 8.4% guidance.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Supermicro, which designs and assembles servers and rack solutions for data centers, has struggled with margins, so this is a piece of welcome news. However, this is generally a low-margin business, and the surprising jump in margins is likely largely due to supply shortages.
There have been shortages of key AI infrastructure components for things like memory, central processing units (CPUs), and graphics processing units (GPUs), so hyperscalers and enterprises that want complete systems right away are more likely to pay up for a complete system from an integrator. A shift toward enterprise or sovereign clients, which have less buying power, can also positively impact margins.
That said, this dynamic could be temporary, and Supermicro is still, by and large, a low-margin middleman. It also has a history of controversy, and its offices in Taiwan were raided at the end of June, related to employees smuggling chips to China. So instead of owning Supermico shares, I think buying Nvidia (NASDAQ: NVDA) is the much safer and smarter bet.
Nvidia is the better stock to own
Supermicro and most other integrators build their servers around Nvidia GPUs, so the strong demand it is seeing and its ability to boost margins speak volumes to the current high-demand environment for Nvidia's chips and components. In fact, this can be a great leading indicator.
When looking at where most of the value resides, this is with Nvidia and its GPUs. Supermicro is largely passing along high GPU prices to its customers; that's why its revenue is so high and its gross margins are generally low. Nvidia, on the other hand, has gross margins around 75%. So, what is good news for Supermicro is ultimately even better news for Nvidia, and you are getting a much more attractive company in Nvidia with a lot less controversy.
As Supermicro's preliminary Q2 numbers show, there is no current let-up in demand for AI infrastructure. At the same time, earlier commentary and an increase in capex from leading foundry Taiwan Semiconductor Manufacturing also point to strong long-term demand. With the king of AI infrastructure trading at a forward P/E of only 16 times fiscal 2028 (ending January 2028) estimates, investors don't need to overthink this and can just buy the stock of the high-quality market leader.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 25, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Supermicro Stock Just Jumped 20%. Why I'm Passing and Buying This AI Leader Instead.

Key Points
Super Micro expects fourth-quarter revenue to come in at the lower end of its previously issued guidance.
While revenue growth is modest, Super Micro reported higher-than-expected profit margins and record backlog.
Super Micro's improving profitability and growing order book represent strong tailwinds for Nvidia's GPU portfolio.
Over the last couple of years, Super Micro Computer (NASDAQ: SMCI) has dealt with some notable headwinds that have affected perceptions around the company. Specifically, Super Micro delayed filing its annual report due to internal reviews of its accounting practices, and was also at the center of alleged export control violations.
These events created a cloud of scrutiny around governance and operational reliability, even as the business rode broader tailwinds fueled by rising artificial intelligence (AI) infrastructure spending from big tech. Super Micro's preliminary fourth-quarter 2026 update points to meaningful progress underscored by stronger profitability metrics and exceptional order momentum.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Let's explore how the company's turnaround acts as a subtle catalyst for Nvidia (NASDAQ: NVDA), and break down why smart investors should care.
What does Super Micro Computer do?
Super Micro designs, builds, and sells high-performance servers, storage solutions, and networking equipment for AI data centers. Its systems are a critical layer of the physical infrastructure needed to train and deploy AI models.
The company works closely with Nvidia by integrating the chipmaker's graphics processing units (GPUs) into server platforms and rack-scale solutions. This relationship involves joint co-engineering efforts around power delivery, thermal management, and liquid cooling to support the computational demands of next-generation AI workloads.
By producing turnkey hardware that combines Nvidia's accelerators with its own server architecture, Super Micro helps hyperscalers accelerate deployment timelines and reduces the complexity of building out massive AI clusters.
Analyzing Super Micro's Q4 preliminary results
According to the company's preliminary update for the fourth quarter of fiscal 2026 (period ended June 30), Super Micro estimates that its revenue will be near the low end of its previous guidance of between $11 billion and $12.5 billion. While revenue growth may not be as robust as investors would like, management highlighted that gross margin is expected to land between 15% and 17% -- nearly double the guided range of 8.2% to 8.4%.
The biggest surprise from the preliminary results was Super Micro's backlog disclosure. The company reports that it received more than $60 billion of new orders during Q4 alone. The company's margin expansion demonstrates improving operational discipline and the ability to capture higher-value business. Moreover, Super Micro's record backlog provides the company with multi-quarter revenue visibility and underscores sustained customer commitments amid an accelerating AI infrastructure build-out.
How does Super Micro's growth affect Nvidia?
Smart investors understand that Super Micro's momentum is a powerful tailwind for Nvidia. As a leading systems integrator, Super Micro incorporates large volumes of Nvidia GPUs into its servers and racks. This means that when Super Micro reports surging orders, it directly reflects strong demand for AI compute.
In turn, this drives higher sell-through of Nvidia's hardware -- creating a cycle that validates the scale of AI adoption and supports Nvidia's own revenue growth and pricing power.
Lastly, a strong performance from Super Micro signals that the broader AI infrastructure environment remains in expansion mode -- reducing concerns about demand digestion and reinforcing Nvidia's central role as an essential enabler of this growth.
Should you buy stock in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 25, 2026.
Adam Spatacco has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Super Micro Just Delivered Fantastic News to Nvidia Investors

Key Points
Super Micro Computer received $60 billion of new orders during its fiscal fourth quarter.
Meanwhile, Super Micro told investors that gross margin is expected to be double what management previously guided for.
Strong demand for Super Micro's AI server solutions is a good sign for Dell Technologies.
Super Micro Computer (NASDAQ: SMCI) recently issued a preliminary financial update for the fourth quarter of fiscal 2026 (period ended June 30). The results painted a mixed picture, with revenue expected to come in near the low end of guidance.
Nevertheless, two other metrics -- a sharply higher gross margin and a record backlog in excess of $60 billion -- stand out as encouraging signals for the broader artificial intelligence (AI) infrastructure market and, specifically, for Dell Technologies (NYSE: DELL). Read on to learn why.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Why is Super Micro Computer important for AI infrastructure?
Super Micro designs high-performance servers, storage systems, and rack-scale solutions optimized for AI data centers. The company is a major player in AI infrastructure as its platforms incorporate the latest GPU architectures, advanced liquid cooling, and high-density configurations. These systems help hyperscalers and cloud providers scale the massive compute clusters required for AI model training and inference. Super Micro competes with other server and systems vendors, most notably Dell Technologies, Hewlett Packard Enterprise, and Lenovo.
Why do Super Micro's gross margin and backlog matter?
Super Micro's preliminary results show an estimated gross margin between 15% and 17%, well above the company's prior guidance of 8.2% to 8.4%. Management attributed the rising profitability to a more favorable customer and product mix. The margin expansion signals that AI server demand is beginning to support stronger pricing and profitability, reflecting a shift toward higher-value configurations as opposed to lower-margin build-outs.
At the same time, Super Micro reported a record backlog with $60 billion in new orders during the fourth quarter alone. The enormous order intake points to sustained capital expenditures (capex) by hyperscalers accelerating their data center footprints. Far from a one-off surge, the data suggests the AI infrastructure boom remains robust, with big tech continuing to commit meaningful balance sheet resources well into the future.
Why Dell is an overlooked winner from Super Micro's growth
Super Micro's growth highlights Dell as a key beneficiary of the same industry trends. Dell offers a far broader portfolio compared to Super Micro -- encompassing servers, storage, networking, PCs, software, and support services. While Super Micro excels in specialized AI server deployments, some customers prefer Dell's integrated solutions and ability to deliver a complete IT stack.
The strong underlying demand confirmed by Super Micro's results validates that AI infrastructure spending is accelerating. Smart investors understand that this creates a spillover opportunity for Dell in segments where it holds competitive advantages. This includes broader enterprise deployments, networking and storage, and situations where customers rely on multiple suppliers.
As Super Micro captures certain pockets of the AI server market, Dell's diversified portfolio is positioned to win incremental business that falls outside SMCI's narrower expertise. Ultimately, Super Micro's improving profitability and massive backlog help confirm the durability of the AI infrastructure supercycle. Dell is positioned to convert Super Micro's momentum into its own market-share gains as it rides the same secular tailwinds but with greater breadth.
Should you buy stock in Dell Technologies right now?
Before you buy stock in Dell Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dell Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 24, 2026.
Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hewlett Packard Enterprise. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Super Micro Just Reported $60 Billion of New Orders -- Here's Why Smart Investors Should Buy Dell Stock Now

Vertiv VRT is set to report its second-quarter 2026 results on July 29.
For the second quarter of 2026, revenues are expected to be between $3.25 billion and $3.45 billion. Organic net sales are expected to increase in the 20% to 24% range. Adjusted earnings are expected to be $1.37 to $1.43 per share (44% to 51% year-over-year growth).
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $3.39 billion, indicating year-over-year growth of 28.40%. The consensus mark for earnings is pegged at $1.43 per share, which has increased by a penny over the past 30 days. This indicates 50.53% year-over-year growth.
Vertiv’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 14.65%, on average.
Vertiv Holdings Co. Price and EPS Surprise
Let’s see how things have shaped up prior to this announcement.
Factors to Note for VRT’s Q2 Results
Vertiv, a cooling and power management infrastructure provider, predominantly serves data center providers and has been capitalizing on robust AI-driven order growth. The company’s extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbars and modular solutions, has been a key catalyst. Vertiv’s innovative product portfolio, such as the Trim Cooler, is optimized for high-temperature operations. The company’s converged solutions, such as OneCore and SmartRun, demonstrate VRT’s ability to address the growing complexity of data center cooling needs. A strong portfolio is expected to have driven VRT’s top-line growth in the to-be-reported quarter.
Vertiv’s expanding portfolio and acquisitions are expected to have been a major growth driver. The company’s acquisitions, such as PurgeRite, ThermoKey, and BMarko Structures and Strategic Thermal Labs, are expected to strengthen its capabilities and market reach. In the first quarter of 2026, acquisitions contributed 4% to revenues. Vertiv’s rich partner base, which includes Hut 8, NVIDIA NVDA, Generate Capital, Caterpillar, Ballard Power Systems, Compass Datacenters, Oklo, Intel, ZincFive and Tecogen, has been noteworthy.
The company’s partnership with NVIDIA has been a key catalyst. Vertiv recently deployed integrated power, liquid cooling, rack infrastructure and installation services to support the Naval Postgraduate School’s new NVIDIA DGX GB300 AI system. The project modernizes an existing facility with a three-rack Vertiv SmartIT configuration, enabling high-density AI computing for research, modeling and simulation. The deployment highlights Vertiv’s ability to accelerate enterprise AI infrastructure rollouts with scalable, pre-engineered solutions.
Vertiv’s expanding international footprint is expected to have driven top-line growth. The global acceleration of AI adoption is driving significant demand for data center infrastructure, and VRT has been capitalizing on this trend. In the first quarter of 2026, Vertiv reported robust organic sales growth across multiple regions, with the Americas leading at 44% organic growth, and APAC up 12%. In 2026, the company expects high-30s organic growth in the Americas, mid-20s in APAC, and a return to growth in EMEA in the second half of the year. The trend is expected to have continued in the to-be-reported quarter as well.
VRT Shares Bear Sector, Industry YTD
Vertiv shares have returned 87.6% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s rise of 13.2% and the Zacks Computer IT Services industry’s decline of 27%.
The company has also outperformed its closest peers, Super Micro Computer SMCI and Amphenol APH. Both companies are expanding their offerings to support high-density, AI-driven data center deployments. Shares of Amphenol and Super Micro Computer have rallied 16.5% and 6.6% over the same time frame, respectively.
VRT Stock Performance
Image Source: Zacks Investment Research
Vertiv stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment. In terms of the 12-month price/book ratio, VRT is trading at 27.51, higher than the Computer & Technology sector’s 10.34, Hewlett-Packard Enterprise’s 2.49 and Super Micro Computer’s 2.48.
VRT Shares Are Overvalued
Image Source: Zacks Investment Research
Vertiv Expands AI Cooling Capacity in Italy
Vertiv is benefiting from the surging global demand for AI-ready data centers, which require advanced cooling and power infrastructure to support increasingly dense and complex compute workloads. The company’s strategic investment in expanding global manufacturing capacity has been a major growth driver.
Building on this momentum, the company recently announced investments at its Tognana campus near Padua, Italy, to expand manufacturing and testing capabilities for AI-ready data center cooling systems.
The expansion is expected to double regional chiller production capacity by the end of 2026 and add a large-scale testing laboratory in early 2027 to validate chillers integrated with liquid cooling systems under high-density AI workloads. The investment strengthens Vertiv’s ability to meet growing demand for AI and high-performance computing infrastructure while accelerating product development, testing and customer deployment of advanced thermal management solutions.
Here’s Why VRT is a Buy Right Now
Vertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. These factors justify the company’s premium valuation.
Vertiv stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Vertiv to Report Q2 Earnings: Buy, Sell, or Hold the VRT Stock?

Penguin Solutions, Inc. PENG is strengthening its AI platform strategy as ClusterWareAI evolves into the software backbone of its AI Factory Platform. Rather than competing solely on AI hardware, the company is building a differentiated full-stack offering by integrating ClusterWareAI with MemoryAI, ComputeAI and managed services to help enterprises deploy, orchestrate and manage complex AI factories through a unified control plane. This software-centric approach expands Penguin's addressable market while creating higher-value revenue opportunities beyond hardware sales.
The platform strategy is already translating into measurable customer wins. Deepgram expanded its deployment by adding ClusterWareAI software and additional services after its initial AI inference implementation, while a Tier 1 financial institution broadened its engagement by adopting MemoryAI KV Cache Server, ClusterWareAI and related services. These customer expansions validate Penguin's land-and-expand strategy, demonstrating how initial infrastructure deployments can evolve into larger software and services engagements that improve revenue visibility. Notably, the company's AI-driven businesses accounted for 74% of third-quarter fiscal 2026 net sales, underscoring the growing contribution of its AI platform.
Penguin is further strengthening this strategy by expanding ClusterWareAI with AI-powered operations, including the AI Factory Operations Agent, to automate AI cluster management and improve administrator productivity. Combined with its hardware-agnostic architecture, these enhancements reinforce ClusterWareAI's role as the operating system of the AI Factory Platform while increasing customer switching costs. Supporting this momentum, the Zacks Consensus Estimate projects revenue growth of 22.54% in fiscal 2026 and 30.57% in fiscal 2027, suggesting the company's platform strategy is translating into sustainable long-term growth.
How PENG’s Competitors Are Moving Forward
Super Micro Computer SMCI is expanding beyond servers into AI factory platforms through Data Center Building Block Solutions, integrating liquid cooling, networking, management software and orchestration. Super Micro Computer emphasizes rapid deployment and end-to-end infrastructure, while Penguin differentiates with ClusterWareAI software and managed services. Super Micro Computer also benefits from broad AI infrastructure demand and global manufacturing expansion.
Hewlett Packard Enterprise HPE is advancing an integrated AI ecosystem by combining AI systems, GreenLake, Private Cloud AI, networking and AIOps software. Hewlett Packard Enterprise leverages Juniper integration, AI-driven networking and hybrid-cloud strategy, while Penguin focuses on ClusterWareAI-centered AI factories. Hewlett Packard Enterprise also enjoys stronger enterprise reach, recurring software services and expanding AI infrastructure opportunities.
PENG’s Share Price Performance, Valuation & Estimates
Shares of Penguin have surged 199.1% in the past six months against the Internet - Software industry's decline of 4.9%.
PENG’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, PENG trades at a forward 12-month price-to-sales (P/S) ratio of 1.42, below the sector’s 6.71X. It carries a Value Score of D.
PENG’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PENG’s fiscal 2026 and fiscal 2027 earnings stands at $2.60 and $3.40 per share, respectively. Notably, both estimates have been revised upward over the past 30 and 60 days.
Image Source: Zacks Investment Research
Penguin stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.