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 growth is accompanied by noticeable pressure on margins and the balance sheet, so the valuation picture is mixed. On valuation multiples, the stock looks inexpensive relative to the industry: P/E, P/S, and especially P/FCF are below the median, which usually supports the valuation, but this is partly offset by the fact that P/B is already close to the average level. The recent trend in P/E has been volatile, and P/S and P/B have also fluctuated, which points to unstable market expectations and does not allow for an aggressive increase in the target price. Return on capital looks strong: ROE and ROA are above industry benchmarks, and return on tangible equity remains high, confirming the company’s ability to generate returns on its own capital. At the same time, gross margin, operating margin, and net margin are below industry medians and have not shown a consistent improvement on an annual basis, which limits earnings quality. Revenue, gross profit, EBITDA, operating income, and net income have increased significantly compared with earlier periods, which is an important positive for the fundamental case. However, cash on hand has declined versus previous periods, and long-term debt remains substantial, so leverage does not look comfortable for a highly cyclical and competitive IT segment. Liquidity is acceptable, though: the current ratio and quick ratio are above 1 and better than industry benchmarks, meaning short-term obligations are covered without obvious stress. Shareholders’ equity and net worth have increased, supporting financial stability, but rising liabilities and lower cash reserves call for caution. The company does not pay dividends, so this factor does not provide price support. Overall, fundamentals support a moderately positive view of the business, but weak margins, debt, and volatility in metrics do not justify a strong increase in the target estimate. For an investor, this means SMCI remains a growth story with good returns on capital, but with elevated execution risk and sensitivity to demand cycles and cost structure.

Super Micro Computer, Inc.

Сильный индекс, значительно вырос. Быки резко укрепили уверенность в своих позициях.

Strong index, significantly up. Bulls sharply strengthened confidence in their positions.

Средний индекс, незначительно упал. Рынок на стороне быков.

Medium index, slightly down. The market is on the bulls' side.

Сильный индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Strong index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

SMCI looks inexpensive on valuation multiples and strong in revenue and earnings growth, but weak margins, debt, and declining cash on hand limit the potential for a re-rating.

Investors with an interest in Computer- Storage Devices stocks have likely encountered both Super Micro Computer (SMCI) and NetApp (NTAP). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Super Micro Computer and NetApp are holding a Zacks Rank of #1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SMCI currently has a forward P/E ratio of 8.44, while NTAP has a forward P/E of 18.27. We also note that SMCI has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NTAP currently has a PEG ratio of 1.64.
Another notable valuation metric for SMCI is its P/B ratio of 2.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NTAP has a P/B of 24.12.
Based on these metrics and many more, SMCI holds a Value grade of B, while NTAP has a Value grade of D.
Both SMCI and NTAP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SMCI is the superior value option right now.
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
This article originally published on Zacks Investment Research (zacks.com).

SMCI or NTAP: Which Is the Better Value Stock Right Now?

Key Points
Applied Digital is scaling massive high-performance computing data centers focused on the artificial intelligence market.
Super Micro Computer remains a leader in optimized server infrastructure with significant revenue scale and profitability.
Which AI infrastructure stock is the better choice for long-term growth?
As the demand for artificial intelligence computing power accelerates, investors are comparing the digital infrastructure of Applied Digital (NASDAQ:APLD) against the specialized hardware offerings of Super Micro Computer (NASDAQ:SMCI). Which stock is the better buy?
Applied Digital focuses on building and operating the large-scale data centers required for advanced computing workloads, while Super Micro Computer designs the high-end server racks that power them. Both companies are central to the AI revolution but face distinct operational and financial hurdles as the industry matures.
The case for Applied Digital
Applied Digital builds and operates high-performance computing data centers that provide the physical foundation for artificial intelligence and machine learning applications. The company primarily generates revenue through long-term hosting leases with major customers such as CoreWeave and other investment-grade hyperscalers. Customer concentration like this adds a layer of risk to the business, as a significant portion of future growth relies on a handful of key relationships. To meet rising demand, the company is expanding its capacity through massive projects like Polaris Forge and Delta Forge in North America.
In its 2026 fiscal year (FY), ended May 31, revenue reached $611.3 million, representing an increase of 167% compared to the prior year. Despite this rapid top-line expansion, the company reported a net loss attributable to common stockholders of $249.2 million for its continuing operations. This resulted in a negative net margin of 40.8%, illustrating that the company is currently prioritizing rapid infrastructure scaling over immediate profitability. This aggressive growth strategy requires constant investment in capital-intensive data center facilities.
As of its May 2026 balance sheet, the current ratio is 4.0x, which measures a company's ability to pay short-term debts with short-term assets. The debt-to-equity ratio reached 2.9x, indicating that total liabilities exceed shareholder equity. Free cash flow, the cash remaining after paying for operations and capital expenses, was negative $2.8 billion during this period. Note that stock-based compensation represented 245.5% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back. This is a common characteristic among semiconductor stocks and related infrastructure providers during high-growth phases.
The case for Super Micro Computer
Super Micro Computer designs and sells application-optimized IT solutions, including liquid-cooled server racks and rack-scale systems for enterprise and cloud providers. The company has a significant global footprint with manufacturing campuses in Asia and Europe, allowing it to serve a diverse set of internet data centers and 5G infrastructure markets. Revenue is concentrated among a limited group of large customers, with four accounts each representing more than 10% of total net sales in recent periods. This dependency means that the loss of a single major partner could significantly impact overall results.
In FY 2026, which ended June 30, revenue reached $39.1 billion, which is a growth of 77.8% over the previous fiscal year. Unlike many high-growth infrastructure peers, the company is profitable, reporting net income of $2.2 billion for the same period. This led to a net margin of 5.7%, showing that Super Micro Computer can generate consistent earnings while scaling its server production. The company continues to benefit from the cyclical demand for high-end computing solutions across the tech sector.
As of its June 2026 balance sheet, the current ratio is 3.9x, suggesting a healthy cushion for meeting short-term obligations. The debt-to-equity ratio is 0.6x, indicating a more conservative capital structure compared to many smaller infrastructure plays. Free cash flow was negative $7.0 billion for the fiscal year, largely due to the high costs of inventory and equipment needed to meet surging AI demand. While the company is profitable on a net income basis, its cash consumption remains high as it builds out global manufacturing capacity.
Risk profile comparison
Applied Digital faces significant risks related to its high customer concentration and its need for substantial additional capital to finish ongoing data center projects. The company carries a heavy debt load and relies on third-party power suppliers, which can lead to operational delays or increased costs if energy prices fluctuate. There are also potential conflicts of interest regarding its relationships with certain affiliates and risks associated with its recent ChronoScale cloud business separation. These factors make the company's path to consistent profitability dependent on both execution and favorable market conditions.
Super Micro Computer deals with legal and regulatory challenges, including multiple class action lawsuits and past issues regarding internal control over financial reporting. The company relies on a limited number of suppliers for critical components like GPUs, putting it at the mercy of industry giants like NVIDIA and Intel. Geopolitical tensions and trade control restrictions also pose threats to its global manufacturing and sales operations. Furthermore, the server market is intensely competitive, and any shift in the cyclical demand for AI computing could cause volatility in its operating results.
Valuation comparison
Super Micro Computer stock appears significantly cheaper, while Applied Digital trades at a premium reflecting its specialized niche and faster revenue growth rate.
Metric
Applied Digital
Super Micro Computer
Forward P/E
n/a
8.6x
P/S ratio
12.7x
0.6x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
The Forward P/E ratio compares the stock price to its future earnings estimates, while the P/S ratio measures the price against total sales.
Which stock would I buy in 2026?
Investors looking at Applied Digital and Super Micro Computer stocks to gain exposure to the artificial intelligence market have a tough choice. Both are experiencing strong revenue growth thanks to the AI tailwind.
However, Applied Digital has amassed over $5 billion in debt at the end of its FY 2026 as it tries to quickly build out more data centers. It is a landlord to AI hyperscalers, and cannot collect rent until these facilities are built. To its credit, it has secured lease agreements worth $36 billion over the next 15 years. So if it can complete the new data centers, the company can count on predictable revenue for years to come.
Super Micro Computer has been plagued by controversies in recent years. Last year, the company's stock was almost delisted for failing to file required earnings reports on time. This year, one of its founders, who no longer works for Super Micro, was charged with attempting to smuggle servers to China in violation of U.S. export laws.
If you can overlook the controversies, Super Micro Computer is the better stock to own. Not only are its sales soaring, it is a profitable company, unlike Applied Digital. For fiscal year 2027, Super Micro forecasted sales in the range of $65 billion to $72 billion, an impressive increase from the prior year's $39.1 billion.
Should you buy stock in Applied Digital right now?
Before you buy stock in Applied Digital, 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 Applied Digital 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 $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% 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 September 9, 2026.
Robert Izquierdo has positions in CoreWeave, Intel, Nvidia, and Super Micro Computer. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool has a disclosure policy.

Better Artificial Intelligence Stock: Applied Digital vs. Super Micro Computer

Key Points
The transaction involved 200,000 shares of common stock for a total value of ~$7.7 million, executed on September 3, 2026 and September 4, 2026.
Traded shares represented 0.3% of the total equity stake held before the filing.
The disposition was executed indirectly through the CEO's spouse.
Charles Liang, President and Chief Executive Officer of Super Micro Computer, Inc. (NASDAQ:SMCI), disclosed a sale of 200,000 shares by his spouse in a SEC Form 4 filing.
Transaction summary
Transaction value
$7.7 million
Shares sold (indirectly held)
200,000
Post-transaction shares (directly held)
40,426,120
Post-transaction shares (indirectly held)
25,770,026
Post-transaction value
$2.62 billion
Transaction value based on SEC Form 4 weighted average sale price ($38.59); post-transaction value based on September 04, 2026 market close ($39.59).
Key questions
What was the structural nature of this disposition?
The sales were executed pursuant to a broker-assisted Rule 10b5-1 trading plan, which was established by the spouse of Charles Liang on May 26, 2026.
How is the residual equity position distributed?
The CEO maintains a direct holding of 40,426,120 shares, while an additional 25,770,026 shares are held indirectly through a spouse and a joint account with a spouse.
What is the current market context for these transactions?
The sales occurred at a weighted average price of $38.59 per share, while the stock was priced at $40.26 as of the September 8, 2026 market close.
What has been the recent return profile for the equity?
The common stock of Super Micro Computer had generated a one-year return of -3% as of the transaction date of September 4, 2026.
Company Overview
Share Price (as of market close 2026-09-08)
$40.26
Market Capitalization
$26.4 billion
Revenue (TTM)
$39.1 billion
Net Income (TTM)
$2.2 billion
Company Snapshot
Super Micro Computer designs and manufactures modular, open-standard server and storage solutions, including liquid and air-cooled AI servers with integrated GPUs, blade systems, and SuperStorage platforms that serve as primary revenue drivers across global markets.
The company generates revenue through the sale of specialized computing infrastructure solutions tailored for data center operators, cloud service providers, and enterprise customers requiring high-performance computing capabilities for AI training, inferencing, and traditional workloads.
Super Micro's customer base comprises hyperscale cloud providers, artificial intelligence companies, financial institutions, and enterprise data center operators seeking efficient, scalable computing solutions with modular architecture and reduced total cost of ownership.
Super Micro Computer is a leading provider of modular computing infrastructure with trailing 12-month revenues of $39.1 billion, positioning the company as a significant player in the AI and data center hardware markets.
The company's competitive advantage derives from its proprietary modular architecture, energy-efficient liquid cooling technologies, and deep customization capabilities that address the evolving requirements of hyperscale computing environments. With operations spanning the United States, Asia, and Europe, Super Micro maintains a diversified geographic footprint to serve the global demand for advanced server and storage infrastructure.
What this transaction means for investors
CEO Charles Liang's spouse sold 200,000 Super Micro Computer shares across Sept. 3 and Sept. 4 as part of a pre-established Rule 10b5-1 plan. This indicates the disposition was non-discretionary and part of a structured portfolio management strategy.
Liang and his spouse retain over 65 million shares post-transaction, so this sale was only a small portion of their overall holdings. Their large equity stake ensures continued alignment with shareholder interests.
Super Micro Computer stock has experienced massive volatility, as evidenced by its beta of two. This is due to the controversies that have plagued the organization in recent years. Last, year, the company's stock was almost delisted when it struggled to file required earnings reports on time. This year, one of its founders, who no longer works for Super Micro, was charged with attempting to smuggle servers to China in violation of U.S. export laws.
Controversies aside, Super Micro is doing well. In its 2026 fiscal year, ended June 30, the company reported a 78% year-over-year increase in sales to $39.1 billion.
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 $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% 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 September 9, 2026.
Robert Izquierdo has positions in Super Micro Computer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Super Micro Computer Reports an Insider Sale of Company Shares Worth $7.7 Million

Wall Street has maintained its northbound journey in 2026 albeit at a slow pace after an astonishing rally in the last three years. Several stocks have jumped this year. Here, we have five stocks that have surged year-to-date and are currently undervalued.
These stocks currently carry a top Zacks rank, indicating more price upside in the near term. The combination of a top Zacks rank and undervaluation should ensure a continued rally for these stocks in 2026. It is prudent to invest in these stocks now as they are unlikely to stay undervalued for a long time.
These stocks are: Super Micro Computer Inc. SMCI, Archer-Daniels-Midland Co. ADM, The Allstate Corp. ALL, Centene Corp. CNC and Avnet Inc. AVT. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year-to-date.
Super Micro Computer Inc.
Super Micro Computer remains positioned to benefit from expanding artificial intelligence (AI) infrastructure demand, supported by rapid adoption of new GPU platforms, its modular Building Block architecture, liquid-cooling expertise and a broader DCBBS offering. SMCI’s strong customer partnership combined with record backlog, rising shipments and expanding product portfolio, positions the company to benefit in the long term.
Solid Estimate Revisions
Super Micro Computer has an expected revenue and earnings growth rate of 71.8% and 22%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 30.3% over the last 30 days.
SMCI has an expected revenue and earnings growth rate of 19.6% and 18.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 42.2% over the last 30 days.
Attractive Valuation
The stock has a forward price/earnings (P/E) of 8.94X, compared with the industry’s P/E of 10.36X and the S&P 500’s P/E of 18.52X. It has a price/sale (P/S) of 0.67X, compared with the industry’s P/S of 5.32X and the S&P 500’s P/S of 3.09X. SMCI has a price/book (P/B) of 2.32X, significantly lower than the industry’s P/B of 16.38X and the S&P 500’s P/B of 3.71X.
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach. ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients.
Solid Estimate Revisions
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Attractive Valuation
The stock has a forward P/E of 16.20X, compared with the industry’s P/E of 13.48X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.50X, compared with the industry’s P/S of 0.91X and the S&P 500’s P/S of 3.09X. ADM has a P/B of 1.73X, compared with the industry’s P/B of 0.98X and the S&P 500’s P/B of 3.71X.
The Allstate Corp.
The Allstate has been benefiting from sustained premium growth, expanding market share, and stronger underwriting performance. ALL’s Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside. ALL’s Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability.
Solid Estimate Revisions
The Allstate has an expected revenue and earnings growth rate of 5% and 1.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last seven days.
ALL has an expected revenue and earnings growth rate of 4% and -21%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1% over the last seven days.
Attractive Valuation
The stock has a forward P/E of 7.31X, compared with the industry’s P/E of 11.58X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.94X, compared with the industry’s P/S of 1.35X and the S&P 500’s P/S of 3.09X. ALL has a P/B of 2.07X, compared with the industry’s P/B of 1.68X and the S&P 500’s P/B of 3.71X.
Centene Corp.
Centene has established itself as a national leader in healthcare services. It has a well-diversified healthcare network that primarily provides a set of services to government-sponsored healthcare programs, while serving underinsured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
Solid Estimate Revisions
Centene has an expected revenue and earnings growth rate of 0.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.2% over the last 30 days.
CNC has an expected revenue and earnings growth rate of -1.9% and 9.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 30 days.
Attractive Valuation
The stock has a forward P/E of 13.70X, compared with the industry’s P/E of 23.44X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.16X, compared with the industry’s P/S of 0.30X and the S&P 500’s P/S of 3.09X. CNC has a P/B of 1.46X, compared with the industry’s P/B of 2.50X and the S&P 500’s P/B of 3.71X.
Avnet Inc.
Avnet enters fiscal 2027 with broad-based demand growth, longer lead times and higher backlog supporting further sales and earnings expansion. AVT’s mix of IP&E, embedded solutions, demand creation and supply-chain services should deepen customer ties and support operating leverage as volumes rise. Farnell’s recovery and tighter working-capital execution add to AVT’s upside, while lower leverage should gradually improve financial flexibility.
Solid Estimate Revisions
Avnet has an expected revenue and earnings growth rate of 23.5% and 84.3%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 22.9% over the last 30 days.
AVT has an expected revenue and earnings growth rate of 4.4% and 7.4%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 19.9% over the last 30 days.
Attractive Valuation
The stock has a forward P/E of 8.81X, compared with the industry’s P/E of 15.49X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.27X, compared with the industry’s P/S of 0.50X and the S&P 500’s P/S of 3.09X. AVT has a P/B of 1.50X, compared with the industry’s P/B of 1.55X and the S&P 500’s P/B of 3.71X.
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

Buy 5 Top-Ranked Undervalued Stocks to Enhance Your Portfolio Returns

Super Micro Computer Inc. SMCI designs, develops and manufactures server and storage systems optimized for artificial intelligence (AI)-powered data centers, cloud computing and edge computing workloads. The company’s solutions are based on its Server Building Block Solutions architecture.
SMCI’s fiscal 2026 revenues nearly doubled to $39.1 billion, while the company generated more than $60 billion in new orders during the fourth quarter, taking the backlog to record levels entering fiscal 2027.
The AI solutions represented about 60% of SMCI’s fourth-quarter fiscal 2026 revenues because several large projects shifted timing, but management expects AI-related solutions to exceed 80% of revenue going forward based on backlog.
The chart below shows the price performance of SMCI year-to-date.
Modular Design Advantage
SMCI’s Building Block architecture remains central to its product-development model. This approach allows common server, storage, networking, power and cooling components to be reused across many system configurations. That can shorten design cycles when new CPUs and GPUs become available and supports customer-specific configurations without rebuilding the entire platform.
Management is also using factory automation, design optimization and standardized building blocks to raise manufacturing yields and streamline logistics. This combination of modular engineering and broad silicon support helps Super Micro Computer respond to shorter hardware cycles. It also supports the company’s strategy of offering application-optimized systems across enterprise, cloud, AI and edge workloads.
Transformation Toward a Complete AI Infra Provider
Super Micro Computer is moving beyond stand-alone servers toward complete Data Center Building Block Solutions (DCBBS). This strategy integrates GPU and CPU servers, enterprise storage, direct liquid cooling, power infrastructure, high-speed switches, networking, data-center management software and lifecycle services.
SMCI said the model is intended to reduce customer time-to-deployment and time-to-online by providing a more integrated data-center build. The company is also expanding software tools such as SuperCloud Composer, Super Micro Data Center Manager and Super Micro Orchestration Manager, while adding proactive service capabilities. Management expects more software features and service products to come online early in fiscal 2027, extending the DCBBS strategy beyond hardware integration.
Liquid Cooling Leadership
Rising rack density is increasing the importance of advanced cooling in AI data centers, and Super Micro Computer continues to expand direct liquid-cooling capabilities. SMCI is producing liquid-cooled rack-scale systems for current AI platforms and said most of its DLC production lines support dense 250kW-class racks.
Liquid cooling is integrated into the broader DCBBS portfolio alongside chilled doors, cooling distribution units and other infrastructure. This capability gives SMCI a broader role in high-density deployments as customers move from server purchases toward complete rack-scale systems.
Robust Clientele
Some of the largest customers of SMCI include NVIDIA Corp. NVDA, Advanced Micro Devices Inc. AMD and Intel Corp. INTC. The company is a big beneficiary of the booming AI-empowered hardware market.
In fourth-quarter fiscal 2026, the company shipped volume products across NVDA’s GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro lines. SMCI is also preparing systems based on NVIDIA Vera Rubin and Vera CPU platforms.
Super Micro Computer launched AMD’s Helios product line and MI450 Total Solution while continuing to support MI350 and MI355X systems. Intel Xeon 6+ platforms are shipping in volume, and the company is developing systems for Arm-based AGI processors.
Strong Guidance
For the first quarter of fiscal 2027, Super Micro Computer expects net sales of $14.5-$15.5 billion, with non-GAAP adjusted earnings of $1.01-$1.10 per share. SMCI expects first-quarter fiscal 2027 non-GAAP gross margin to be between 10.4% and 10.8%, significantly below the unusually strong fourth-quarter level as customer and product mix normalizes.
For full-year fiscal 2027, SMCI expects net sales of $65-$72 billion compared with $39.1 billion in fiscal 2026. The outlook reflects continued AI infrastructure demand, record backlog and increasing contributions from enterprise, sovereign AI, NeoCloud and agentic AI opportunities.
Solid Estimate Revisions
Super Micro Computer has an expected revenue and earnings growth rate of 71.8% and 22%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 30.3% over the last 30 days.
SMCI has an expected revenue and earnings growth rate of 19.6% and 18.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 42.2% over the last 30 days.
Image Source: Zacks Investment Research
Attractive Valuation
Super Micro Computer is currently trading at an attractive valuation compared to its peers. The stock has a forward price/earnings (P/E) of 8.94X, compared with the industry’s P/E of 10.36X and the S&P 500’s P/E of 18.52X. It has a price/sale (P/S) of 0.67X, compared with the industry’s P/S of 5.32X and the S&P 500’s P/S of 3.09X. SMCI has a price/book (P/B) of 2.32X, significantly lower than the industry’s P/B of 16.38X and the S&P 500’s P/B of 3.71X.
Investment Thesis
SMCI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The stock price has surged 35% year to date. Yet, SMCI is currently trading at a 32.6% discount to its 52-week high price level.
Image Source: Zacks Investment Research
Super Micro Computer remains positioned to benefit from expanding AI infrastructure demand, supported by rapid adoption of new GPU platforms, its modular Building Block architecture, liquid-cooling expertise and a broader DCBBS offering. SMCI’s strong customer partnership combined with record backlog, rising shipments and expanding product portfolio, positions the company to benefit in the long term.
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

Buy Super Micro Computer for Handsome Returns & Attractive Valuations

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Super Micro Computer (SMCI) ten years ago? It may not have been easy to hold on to SMCI for all that time, but if you did, how much would your investment be worth today?
Super Micro Computer's Business In-Depth
With that in mind, let's take a look at Super Micro Computer's main business drivers.
Super Micro Computer, headquartered in San Jose, CA, is a global leader in high-performance, energy-efficient IT solutions. Founded in 1993 and reincorporated in Delaware in 2007, Super Micro Computer designs, develops, and manufactures server and storage systems optimized for data centers, cloud computing, artificial intelligence (AI) and edge computing workloads. The company’s solutions are based on its innovative Server Building Block Solutions architecture.
Super Micro Computer offers a wide portfolio of rack-scale Total IT Solutions, including complete servers, storage systems, blade servers, subsystems and server management software. Its platforms serve diverse verticals, from hyperscale cloud providers to embedded edge applications and are increasingly focused on AI, with expanded support for NVIDIA’s Hopper and Blackwell platforms, as well as liquid cooling technologies to support advanced thermal demands.
It reported total sales of $22 billion for fiscal 2025, up from $15 billion in fiscal 2024. Super Micro Computer operates through one reportable segment but categorizes revenues across product lines. In fiscal 2025, the Server and Storage systems segment generated approximately 98% of net sales, while Subsystems and Accessories accounted for 2%. Geographically, 68% of net sales came from the United States and 32% from international markets, including Taiwan, the Netherlands and other regions.
The company’s customers span more than 1,000 direct accounts across more than 100 countries, in addition to thousands more through its indirect sales channels. Four customers accounted for more than 10% of fiscal 2025 revenues.
Super Micro Computer faces competition from large enterprise technology vendors like Dell, Hewlett Packard Enterprise, Cisco and Lenovo, as well as ODMs such as Quanta, Foxconn and Wiwynn.
As of June 30, 2025, SMCI employed 6,238 full-time employees, with nearly half located in San Jose, CA. Its global R&D organization includes more than 3,255 engineers, supporting a strategy centered on delivering next-generation systems tailored to emerging computing trends while maintaining a commitment to green IT and operational efficiency.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Super Micro Computer a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2016 would be worth $12,784.66, or a gain of 1,178.47%, as of May 14, 2026, and this return excludes dividends but includes price increases.
The S&P 500 rose 263.74% and the price of gold increased 253.71% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for SMCI.
Super Micro Computer is well-positioned to benefit from the growing demand for AI infrastructure. The company is often the first to market with the latest AI servers, including systems built on NVIDIA's GB300 NVL72, HGX B300 and RTX6000Pro platforms, as well as AMD MI350/355 systems, giving it a strong edge. Its modular design approach allows rapid customization, supported by a large R&D team that integrates the newest chips from NVIDIA and AMD. Super Micro is also expanding into full-stack IT solutions through DCBBS, bundling servers, cooling and networking into one offering. Its liquid cooling technology, DLC-2, supports sustainable data center growth. Nonetheless, trade restrictions, strong competition and lingering concerns from past accounting issues remain major concerns.
Shares have gained 17.26% over the past four weeks and there have been 8 higher earnings estimate revisions for fiscal 2026 compared to none lower. The consensus estimate has moved up as well.
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
This article originally published on Zacks Investment Research (zacks.com).

Here's How Much You'd Have If You Invested $1000 in Super Micro Computer a Decade Ago

Dell Technologies DELL shares hit a 52-week high of $534.96 today following impressive second-quarter fiscal 2027 results. DELL is benefiting from strong demand for AI-optimized infrastructure. In the second quarter of fiscal 2027, AI server orders reached a record $60.9 billion, while revenues were $16.4 billion and ending backlog climbed to $95 billion. Dell is also benefiting from data-center modernization beyond AI. Traditional server and networking revenues surged 122% year over year in the fiscal second quarter.
Year-to-date (YTD), DELL stock has jumped 308.4%, outperforming the broader Zacks Computer and Technology sector’s rise of 17.5%. DELL has also outperformed Super Micro Computer SMCI, Hewlett Packard Enterprise HPE and HP HPQ, shares of which have returned 34.6%, 119.1% and 42.5%, respectively, over the same time frame. Is there more room for the DELL stock to run? Let’s find out.
DELL Stock’s Price Performance
DELL Shares Ride on AI Prospects
Dell is benefiting from exceptionally strong demand for AI-optimized infrastructure. DELL’s opportunity pipeline continued to expand sequentially and remained multiples of backlog, while the customer base across neocloud, sovereign and enterprise markets exceeded 6,500 in the second quarter of fiscal 2027. Dell expects fiscal 2027 AI server revenues of $74 billion, roughly three times the prior-year level. Dell’s broad portfolio across AI infrastructure, traditional servers, networking, storage and PCs allows it to capture spending across multiple areas of enterprise IT modernization.
The company is benefiting from growing clientele. Customers are replacing aging infrastructure to improve processing capacity, power efficiency, security and resiliency. A majority of Dell’s installed base remains on 14th-generation or older servers, providing a sizeable multi-year refresh opportunity. Demand is also being supported by greater CPU requirements associated with AI and agentic workloads.
Dell’s storage business is becoming a more meaningful contributor to growth and profitability. Storage revenues increased 26% year over year, supported by strong demand for Dell IP products. Dell IP demand has grown above the market for six consecutive quarters, while PowerFlex, PowerStore, PowerProtect, PowerVault, PowerScale and ObjectScale are seeing healthy demand. Expanding data volumes, infrastructure modernization, and AI workloads that require enterprises to prepare, manage, protect and move large datasets should continue to support storage demand.
The Client Solutions Group (CSG) is benefiting from strengthening enterprise PC refresh activity. CSG revenues increased 20% in the second quarter of fiscal 2027, while commercial revenues rose 22%, marking the eighth consecutive quarter of revenue growth. Large enterprises continue to refresh installed PCs across regions. At the same time, longer replacement cycles among more cost-sensitive customers are increasing the pool of aging devices, potentially extending Dell's long-term refresh opportunity. Consumer revenues also increased 7%, marking the fourth consecutive quarter of demand growth.
DELL’s Earnings Estimate Revision Shows Rising Trend
The Zacks Consensus Estimate for third-quarter fiscal 2027 earnings is pegged at $4.78 per share, up by 10.6% over the past 30 days and indicating 84.56% growth from the figure reported in the year-ago quarter.
Dell Technologies Inc. Price and Consensus
The consensus mark for fiscal 2027 earnings is pegged at $20.48 per share, up 9% over the past 30 days, suggesting 98.83% growth from fiscal 2026’s reported figure.
DELL Stock is Trading at a Premium
Dell shares are trading at a premium, as suggested by a Value Score of C.
In terms of the forward 12-month price/earnings (P/E), DELL is trading at 23.70X, higher than the broader Zacks Computer and Technology sector’s 20.58X. Dell is trading at a higher multiple compared with peers, including Super Micro Computer’s 8.27X, Hewlett Packard Enterprise’s 13.66X and HP’s 10.51X.
DELL Shares Valuation
Technically, Dell Technologies is trading above the 50 and 200-day moving averages (SMAs), indicating a bullish trend.
DELL Stock Trades Above 50 & 200-Day SMAs
Conclusion
Dell’s prospects remain bright, supported by accelerating AI server demand, a massive backlog, a sizeable data-center refresh cycle, improving storage momentum and healthy commercial PC demand. The upward trend in earnings estimates and the stock’s position above its 50-day and 200-day moving averages further reinforce the positive outlook. Although DELL’s strong rally has pushed its valuation above the broader sector and key peers, the premium appears supported by robust earnings growth and expanding opportunities across AI infrastructure, traditional servers, storage and PCs. With AI server revenues expected to nearly triple in fiscal 2027 and demand remaining strong across the portfolio, Dell appears well positioned to sustain its growth momentum, suggesting further upside potential for the stock.
DELL currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of B, 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 stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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
This article originally published on Zacks Investment Research (zacks.com).

DELL Stock Hits 52-Week High: Does it Have More Room to Run?

NetApp, Inc. NTAP recently reported a record first-quarter fiscal 2027, with strong momentum across its Hybrid Cloud and Public Cloud businesses. The company generated quarterly net revenues of $2.03 billion, up 29.9% year over year, while non-GAAP earnings per share of $2.58 increased 66.5% year over year. The bottom line beat the Zacks Consensus Estimate of $2.13 by 21.1%.
Revenue growth was driven by broad-based momentum across the business, reflecting a healthier demand environment as customers invested in AI and modernization, along with some accelerated purchases and pricing benefits.
The Zacks Consensus Estimate for Hybrid Cloud and Public Cloud businesses’ revenues was $1.65 billion and $196 million, respectively.
NetApp, Inc. Price, Consensus and EPS Surprise
Hybrid Cloud Revenues Rise
Hybrid Cloud revenues were $1.82 billion in the reported quarter, increasing 30.1% year over year and 27% after adjusting for the additional week in the quarter. Product revenues increased 50.9% year over year to $987 million, while Support revenues rose 11.3% to $720 million. Professional Services revenues totaled $112 million, up 15.5% year over year, mainly driven by continued robust growth in Keystone, NetApp’s storage-as-a-service offering.
All-flash revenues acted as another key contributor to the Hybrid Cloud business, reaching $1.31 billion, up 46.6% year over year. Customers continued to standardize on NetApp for mission-critical workloads, including GPU-intensive AI pipelines requiring high performance, low latency and built-in cyber resilience. The company also noted accelerating interest in its hybrid flash solutions.
Public Cloud Revenues Grow
Public Cloud revenues increased 28% year over year to $206 million in first-quarter fiscal 2027 and grew 19% after adjusting for the additional week. The growth reflected strong demand for first-party and marketplace storage services. The additional week contributed approximately $15 million to Public Cloud revenue.
NetApp continued to see strength in its cloud storage business as customers migrated workloads to the cloud. VMware workloads, in particular, are increasingly being moved to the cloud, creating opportunities for NetApp. During the quarter, a U.S. hospitality company adopted NetApp technology through Amazon FSx for NetApp ONTAP to support a large-scale VMware migration to AWS. A U.S. public sector organization also selected Azure NetApp Files for data modernization efforts.
On the latestearnings call management stated that Public Cloud growth remained in the high teens as the business scaled, with continued strength in first-party and marketplace storage services. The company also highlighted additional AI solutions with hyperscalers, use cases combining on-premises data with hyperscale cloud and block storage and lower-cost price points across multiple clouds, including Google and Amazon.
NetApp Raises FY27 Outlook
Driven by the strong fiscal first-quarter performance, NetApp raised its fiscal 2027 outlook. The company now expects revenues at $7.975-$8.225 billion, with the $8.10 billion midpoint representing 17% growth and a $650 million increase from prior guidance. The Zacks Consensus Estimate is currently pinned at $7.56 billion.
Non-GAAP gross margin is expected at 68.1-69.1%, operating margin at 30.3-31.3% and earnings at $9.73-$10.03 per share. The $9.88 earnings midpoint represents 22% year-over-year growth. The Zacks Consensus Estimate is currently pinned at $9.07 per share.
NTAP’s Zacks Rank & Stock Price
NetApp currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases in the Storage Space
SanDisk SNDK reported fourth-quarter fiscal 2026 non-GAAP earnings of $39.25 per share that beat the Zacks Consensus Estimate by 14.63% and jumped 68% sequentially. The company reported earnings of 29 cents per share in the year-ago quarter. Revenues surged 371.6% year over year to $8.97 billion and beat the consensus mark by 8%. Sequentially, SNDK’s revenues surged 51%. Stronger pricing, higher volumes and rapid Datacenter growth drove the upside, with Datacenter revenues hitting $2.98 billion in the reported quarter.
Teradata Corporation TDC reported second-quarter 2026 non-GAAP earnings of 69 cents per share, up 46.8% year over year. The figure surpassed the Zacks Consensus Estimate by 25.46%. Revenues of $410 million increased 0.5% from the year-ago quarter and beat the consensus by 2.91%. TDC’s Total annual recurring revenues increased 1% as reported and 2% in constant currency to $1.509 billion.
Super Micro Computer, Inc. SMCI reported fourth-quarter fiscal 2026 non-GAAP earnings of $1.70 per share, beating the Zacks Consensus Estimate of 68 cents. The bottom line increased 315% year over year. SMCI generated net sales of $11.12 billion, which increased 93% year over year and 9% sequentially. Revenues also beat the Zacks Consensus Estimate by 1.09%. The strong performance reflected continued demand for AI infrastructure, as well as a sharp pickup in enterprise and channel activity.
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
NetApp, Inc. (NTAP) : Free Stock Analysis Report

NTAP Q1 Earnings Beat Estimates on Hybrid, Public Cloud Revenue Growth

Super Micro Computer SMCI shares have gained 29.3% year to date compared with the Zacks Computer and Technology sector and Zacks Computer – Storage Devices industry’s appreciation of 16% and 221.3%, respectively
SMCI YTD Performance Chart
Despite this rise in the stock price, Super Micro Computer offers to its investors at current levels. Currently, SMCI is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.34X compared with the industry’s 3.05X. The undervaluation is further substantiated by Zacks Value Score of B.
SMCI Forward-12 Month (P/S) Valuation Chart
SMCI Gains From Partnership With Leading Chip Companies
Super Micro Computer is increasingly positioning itself as a complete AI infrastructure provider rather than a conventional server manufacturer. SMCI’s close collaboration with leading AI-chip vendors, including Intel INTC, NVIDIA NVDA and Advanced Micro Devices AMD, enables the company to align system designs with their product-release schedules, helping SMCI accelerate time-to-market and reduce system-level issues.
SMCI is shipping volume systems based on the NVIDIA GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro platforms, while preparing first-to-market systems for NVIDIA’s Vera Rubin VRNVL72, Rubin HGX and Vera C1 platforms. With Advanced Micro Devices, SMCI launched the complete Helios product line and MI450 Total Solution, alongside continued momentum for EPYC CPUs and MI350 and MI355X platforms.
The breadth of these partnerships strengthens SMCI’s position as AI infrastructure evolves from individual GPU servers toward complete rack-scale deployments. The company’s NVIDIA and Advanced Micro Devices platforms can be integrated into its Data Center Building Block Solutions (DCBBS), which combine compute, storage, networking, power, direct liquid cooling, software and services.
SMCI is also scaling the infrastructure required to support these partner platforms. Its fiscal 2027 plan calls for more than 6,000 racks of monthly capacity, split between roughly 3,000 direct-liquid-cooled and 3,000 air-cooled racks, with 240kW racks expected to enter volume production and 500kW systems approaching. The company’s DCBBS portfolio also includes cooling distribution units, chilled doors, power shelves, battery backup, switches and data-center management software giving customers one shop stop advantage.
SMCI Benefits From Record Backlog and Rising Shipments
SMCI’s fiscal 2026 revenues nearly doubled to $39.1 billion, while the company generated more than $60 billion in new orders during the fourth quarter, taking the backlog to record levels entering fiscal 2027. The AI solutions represented about 60% of SMCI’s fourth-quarter fiscal 2026 revenues because several large projects shifted timing, but management expects AI-related solutions to exceed 80% of revenue going forward based on backlog.
The company guided for fiscal 2027 sales of $65 billion to $72 billion and first-quarter sales of $14.5 billion to $15.5 billion. Demand across AI training, inference, NeoCloud and sovereign deployments therefore remains the main foundation for Super Micro Computer’s longer-term expansion. Super Micro Computer continues to emphasize early availability of new AI systems integrated with NVIDIA, Advanced Micro Devices and Intel chips as a competitive advantage.
Intel Xeon 6+ platforms are shipping in volume, and the company is developing systems for Arm-based AGI processors. Broad support across multiple processor ecosystems gives customers more deployment choices and can help the company participate in successive AI platform transitions.
SMCI’s non-GAAP gross margin rose to 17.6% in fourth-quarter fiscal 2026 from 10.1% in the prior quarter. For SMCI, 75% of the sequential improvement came from favorable mix, including contracts that shifted into fiscal 2027. Lower tariff costs and inventory reserves were also tailwinds. For the first quarter of fiscal 2027, non-GAAP adjusted earnings were $1.01-$1.10 per share. The Zacks Consensus Estimate for SMCI’s first quarter of fiscal 2027 earnings is pegged at $1.06, indicating a year-over-year rise of 200%. Estimates have been revised upward in the past 30 days.
Conclusion: Buy SMCI Stock Now
SMCI’s strong partnerships with NVIDIA, AMD and Intel, combined with record backlog, rising shipments and expanding DCBBS capabilities, position the company to benefit from sustained AI infrastructure spending. Its growing liquid-cooling capacity, enterprise diversification and improving margins further support growth, although execution, project timing and competitive pressures remain key factors to monitor. Currently, SMCI sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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

SMCI Rises 29% Year to Date: Time to Buy, Sell or Hold the Stock?

Vertiv VRT has agreed to acquire UtilityInnovation Group (UIG) for approximately $1.45 billion in cash at closing, with additional consideration tied to future performance. The acquisition is expected to strengthen Vertiv’s position in the rapidly expanding artificial intelligence (AI) data-center infrastructure market by adding microgrid controls, on-site generation and energy-storage orchestration, microgrid-specific switchgear and behind-the-meter power architecture capabilities. These additions should help customers address power availability and grid-connection constraints while broadening Vertiv’s competitive position across the AI data-center infrastructure market, where Amphenol APH and Super Micro Computer SMCI are expanding their presence in areas such as connectivity, power interconnects and integrated rack-scale infrastructure.
UIG should extend Vertiv’s existing power portfolio further upstream toward utility interconnection and on-site generation. Vertiv already provides alternating current (AC) and direct current (DC) power management, low- and medium-voltage switchgear, busbars, uninterruptible power supply (UPS) systems, energy-storage solutions and integrated infrastructure. The deal also fits Vertiv’s broader push into distributed and alternative power. Its partnership with Oklo explores alternative energy solutions for future data-center requirements, while its Caterpillar alliance supports distributed power generation and backup solutions. Adding UIG could therefore strengthen Vertiv’s ability to offer a more comprehensive power solution extending from on-site generation and the grid through the data hall and rack.
The acquisition is relevant as AI data centers move toward increasingly complex power architectures. Vertiv expects AC, medium-voltage AC and medium-voltage direct current (MVDC) systems to coexist and is developing an orchestrated powertrain spanning the source, data hall, pod and rack. Its roadmap includes medium-voltage battery energy storage system/UPS systems, switchgear, DC busways, 800-VDC sidecars, MVDC UPS and solid-state transformers. Some 800-VDC technologies are undergoing customer validation in 2026, with deployments planned for 2027, while other solutions target validation in 2027 and deployment in 2028. Vertiv is collaborating with NVIDIA and VisionBay AI on an 800-VDC data-center architecture featuring NVIDIA Vera Rubin, supporting its view that evolving power architectures can increase content opportunity per megawatt.
UIG extends Vertiv’s acquisition-led effort to build a broader AI infrastructure platform. The Great Lakes acquisition expanded racks and integrated white-space infrastructure, while ThermoKey and Strategic Thermal Labs strengthened capabilities spanning heat rejection, liquid cooling and cold plates. Vertiv says these investments support an integrated systems-level approach. Demand remains supportive, with Vertiv continuing to expand capacity and invest in future power architectures, advanced thermal systems and converged infrastructure for next-generation AI factories.
VRT Faces Tough Competition
Amphenol and Super Micro Computer are challenging Vertiv across AI data-center infrastructure. APH competes through its high-speed copper, fiber-optic and power-interconnect solutions, while SMCI offers integrated AI data-center systems spanning compute, liquid cooling, networking, storage, software and lifecycle services. Amphenol is rapidly expanding its AI exposure. IT datacom revenues surged 89% year over year and 63% organically in the second quarter, with virtually all sequential growth driven by AI-related products. Its power portfolio includes board-level power, busbars and complex cable assemblies extending from chips and racks toward data-center switchgear.
Super Micro poses a broader systems-level challenge through its data center building block solutions platform, which integrates graphics processing units and central processing units, storage, direct liquid cooling, coolant distribution units, networking and management software. The company is scaling toward more than 6,000 racks per month, including more than 3,000 direct liquid-cooled racks, while supporting the latest 250-kilowatt rack platforms.
VRT’s Share Price Performance, Valuation & Estimates
Shares of Vertiv have appreciated 58.4% year to date, outperforming the broader Zacks Computer and Technology sector’s 15.5% growth.
VRT Stock’s Price Performance
VRT stock is trading at a premium, with forward 12-month price/earnings of 31.49X compared with the broader sector’s 20.22X. Vertiv has a Value Score of D.
VRT’s Valuation
The Zacks Consensus Estimate for Vertiv’s earnings is currently pegged at $1.81 per share, unchanged over the past 30 days, suggesting 45.97% growth.
Vertiv Holdings Co. Price and Consensus
Vertiv currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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
This article originally published on Zacks Investment Research (zacks.com).

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	SMCI	Industry	SMCI	Industry	Volume, $
Yesterday 37.6 - 40.5	-1.01	5.21	1.30	1.13	1.48B
Week 37.4 - 41.5	-2.05	4.65	2.62	6.14	6.40B
Month 34.1 - 42.3	-2.35	9.14	16.57	14.24	28.65B
3 Months 23.4 - 42.3	21.52	18.80	30.86	23.04	81.37B
6 Months 19.5 - 51.4	20.42	42.28	45.11	32.84	152.45B
Year 19.5 - 58.8	-19.72	58.53	91.02	57.19	258.76B
3 years 17.3 - 122.9	39.99	58.32	173.29	95.84	1.40T
5 years 3.4 - 122.9	914.08	30.88	198.69	119.77	1.46T
All time 0.9 - 122.9	188.86	104.60	—	—	1.31T

Super Micro Computer, Inc.

Price and volatility history

Risk ratios