Latest news with #SMCI
Globe and Mail
2 days ago
- Business
- Globe and Mail
SMCI vs. DELL: Which Server Stock is the Better Buy Now?
Super Micro Computer SMCI and Dell Technologies DELL are key players in the server space, offering organizations server-based technologies and supporting them with high computing power. Per a report by Grand View Research, the Global Server market is anticipated to witness a CAGR of 9.8% from 2024 to 2030. Rapid adoption of servers across industries like healthcare, retail, BFSI, manufacturing, education and others will drive the server space. With this strong industry growth forecast, the question remains: Which stock has more upside potential? Let's break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case. The Case for SMCI Stock Super Micro Computer is experiencing strong adoption of its high-performance and energy-efficient servers among AI data centers and hyperscalers. Notably, server and storage system segmental revenues grew 19% year over year in the third quarter of fiscal 2025, crossing the $4.5 billion milestone and now account for 97% of its total revenues. SMCI's server and storage revenues are being driven by its direct liquid cooling products for data-center applications, which reached a production volume of more than 2000 DLC racks per month. Super Micro Computer's recent launches, like Data Center Building Block Solutions, petascale storage systems for AI workloads, and its integration of NVIDIA Blackwell GPUs in its solutions to achieve high compute power, will keep it at the forefront of the server and storage space. Irrespective of the massive potential of SMCI's server offerings, the company is facing some near-term challenges, including delayed purchasing decisions from customers as they are evaluating the adoption of next-generation AI platforms. SMCI is also facing margin contraction due to the growing price competition and price adjustments as companies are second-guessing their shift from older to newer platforms like Blackwell. In the last reported quarter, SMCI also incurred a one-time inventory write-down on older-generation GPUs and related components, further affecting its margins. Based on all the above factors, SMCI revised the revenue guidance for fiscal 2025 from $23.5-$25.0 billion to a range of $21.8 billion to $22.6 billion. The Zacks Consensus Estimate for SMCI's 2025 revenues is pegged at $22.12 billion, indicating growth of 48% year over year. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $2.07 per share, indicating a year-over-year decline of 6.3%. The Case for DELL Stock Dell Technologies is experiencing a massive traction in its AI-optimized servers, which has enabled it to achieve a record servers and networking revenues of $6.3 billion in the first quarter of 2026, which grew 16% year over year. In the first quarter of 2026, DELL announced that it received orders worth $12.1 billion for its AI servers, which has surmounted to become $14.4 billion in AI backlogs. The adoption of DELL's AI servers is propelled by rapid enterprise adoption by organizations across web technology, financial services, manufacturing, media and entertainment, and education, with DELL witnessing growth in repeat enterprise customers and AI Factory deployments. Dell has designed its AI server solutions to be custom and modular, adding air and liquid cooling features with 24-hour rack deployment turnaround and end-to-end deployment services. These key differentiators make its server easy to deploy, hence encouraging smoother adoption. The company has partnered with leading technology providers, including NVIDIA, AMD, Meta, Hugging Face, Cohere, Mistral, and Google. These partnerships have aided DELL in implementing technological enhancements like integrated PowerCool, Project Lightning and on-prem Gemini support, making its AI servers even more promising. Based on all the above factors, DELL expects its fiscal 2026 revenues to be between $101 billion and $105 billion, with the mid-point of $103 billion, indicating 8% year-over-year growth. The Zacks Consensus Estimate for DELL's fiscal 2026 revenues is pegged at $103.53 billion, indicating growth of 8.33% year over year. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $9.43 per share, indicating year-over-year growth of 15.85%. Image Source: Zacks Investment Research Stock Price Performance and Valuation of SMCI & DELL Shares of SMCI and DELL have gained 45.4% and 1.1%, respectively, in the year-to-date period. SMCI is trading at a forward 12-month Price to Sales ratio of 1.28X, which is higher than its median of 1.25X. DELL is trading at a forward sales multiple of 0.85X, much below its median of 0.87X. The lower valuation of DELL stock compared to SMCI makes it more attractive at present. Conclusion: SMCI vs. DELL Stock DELL is comparatively cheaper and has brighter prospects in the server market as it is strongly driven by its AI servers, which are rapidly adopted by enterprise customers, as reflected in its massive backlog value. In the meantime, SMCI is facing near-term challenges stemming from delayed purchasing decisions from customers and margin contraction from pricing pressure. Furthermore, DELL sports a Zacks Rank #1 (Strong Buy) at present, making the stock a stronger pick compared with SMCI, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Dell Technologies Inc. (DELL): Free Stock Analysis Report
Yahoo
5 days ago
- Business
- Yahoo
SMCI's Server Demand Rising: Will Innovation Keep the Momentum?
Super Micro Computer's SMCI server and storage system segmental revenues grew 19% year over year in the third quarter of fiscal 2025, crossing the $4.5 billion milestone. The server and storage system segment, which accounted for a whopping 97% of the company's top line, is getting propelled by the rising traction of its innovative products among hyperscalers and AI clients. At present, the server and storage system revenues are mainly driven by SMCI's direct liquid cooling products for data-center applications, which reached a production volume of more than 2000 DLC racks per month. The future of this segment is bright due to several recent product launches, including SMCI's Data Center Building Block Solutions ("DCBBS') and petascale storage systems for AI workloads. SMCI recently launched DCBBS, bringing down the barrier to entry that many companies face by simplifying deployment. This modular solution integrates networking, power and cooling to optimize space and reduce power/water consumption. SMCI also launched the Petascale All-Flash Storage Server, integrated with NVIDIA Grace CPU Superchip for heavy workload software-defined networking and AI-storage workloads. The company is also expanding the reach of its server and storage solutions through global manufacturing expansion across Malaysia, Taiwan and Europe to ramp up the deployment of these solutions while mitigating geopolitical and tariff barriers of local governments. Super Micro's sustained focus on enhancing its server and storage product portfolio is likely to continue driving the top-line performance. The Zacks Consensus Estimate for SMCI's fiscal 2025 revenues is pegged at $22.12 billion, indicating growth of 48% year over year. The global storage and server market is dominated by players like Pure Storage PSTG and Hewlett Packard Enterprise HPE. Pure Storage provides a range of modern storage solutions through its offerings like FlashArray, FlashBlade and Pure Cloud Block Store to serve the purpose of providing All-Flash performance, cloud integration, AI and simplified management. Hewlett Packard Enterprise offers a range of server services, including HPE ProLiant, HPE Synergy, HPE BladeSystem and HPE Moonshot servers. In the second quarter of fiscal 2025, Hewlett Packard Enterprise's server segment sales grew 6% year over year due to strong demand for its AI servers. Per a report by the Mordor Intelligence, the enterprise server market is expected to grow at a CAGR of 8.03% from 2025 to 2030 and reach $139.81 billion. Given the huge opportunity in the space, players like Super Micro, Pure Storage and Hewlett Packard Enterprise, are poised to witness tremendous growth. Shares of SMCI have gained 43.3% year to date against the Zacks Computer- Storage Devices industry's decline of 3.2%. Image Source: Zacks Investment Research From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.87X, down from the industry's average of 1.61X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for SMCI's fiscal 2025 earnings implies a year-over-year decline of 6.33%, while the same for fiscal 2026 indicates growth of 35.75%. The estimates for fiscal 2025 and 2026 have been revised downward in the past 60 days. Image Source: Zacks Investment Research SMCI currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) 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 Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Pure Storage, Inc. (PSTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-06-2025
- Business
- Yahoo
Super Micro Unleashes 30+ Nvidia Blackwell AI Systems Across Europe
June 12 - Super Micro Computer (NASDAQ:SMCI) has rolled out over 30 new enterprise AI solutions in Europe built on Nvidia's (NASDAQ:NVDA) Blackwell chip architecture, aiming to speed up deployment of AI infrastructure across the region. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The expanded portfolio includes systems powered by the air- and liquid-cooled NVIDIA HGX B200, liquid-cooled NVIDIA GB200 NVL72, and RTX PRO 6000 Blackwell Server Edition GPUs. The systems are designed to support enterprise-grade AI factories across varied environments, from data centers to edge networks. Supermicro said its latest offerings are optimized to deliver faster deployment timelines and energy-efficient performance through its advanced liquid cooling systems and integration with Nvidia technologies. The company has begun taking orders for the new GPU-based systems, which are available in multiple configurations to accommodate a broad range of enterprise needs. CEO Charles Liang said Supermicro's early access to Nvidia's Blackwell architecture and its global manufacturing capacity position it well to support rising demand for AI infrastructure in the region. Based on the one year price targets offered by 15 analysts, the average target price for Super Micro Computer Inc is $40.00 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a downside of -7.44% from the current price of $43.21. Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $68.35, suggesting a upside of +58.18% from the current price of $43.21. This article first appeared on GuruFocus.
Yahoo
13-06-2025
- Business
- Yahoo
Super Micro Computer (SMCI) Debuts the Industry's Broadest AI Solution Stack for NVIDIA Blackwell
Super Micro Computer, Inc. (NASDAQ:) is one of the . On June 11, the company announced an expansion of the industry's broadest portfolio of solutions designed for NVIDIA Blackwell Architecture to the European market. The 30+ solutions offer the most comprehensive and efficient solution stack for NVIDIA HGX B200, GB200 NVL72, and RTX PRO 6000 Blackwell Server Edition deployments. These solutions will accelerate the deployment of European enterprise AI factories across any environment. Supermicro's solution stack will not just enable the deployment of NVIDIA Enterprise AI Factory validated design, but also support the upcoming introduction of NVIDIA Blackwell Ultra solutions, anticipated later this year. This includes the NVIDIA GB300 NVL72 and HGX B300. A scientist at a computer station, surrounded by a neural network of artificial intelligence code. A major highlight of Supermicro's latest offerings is its DLC-2 liquid cooling technology, which can remove up to 250kW of heat per rack. Through this innovation, customers will be able to deploy much more compute power within existing facility constraints, all while maintaining optimal thermal performance for sustained AI workloads. 'With our first-to-market advantage and broad portfolio of NVIDIA Blackwell solutions, Supermicro is uniquely positioned to meet the accelerating demand for enterprise AI infrastructure across Europe. Our collaboration with NVIDIA, combined with our global manufacturing capabilities and advanced liquid cooling technologies, enables European organizations to deploy AI factories with significantly improved efficiency and reduced implementation timelines. We're committed to providing the complete solution stack enterprises need to successfully scale their AI initiatives.' -Charles Liang, president and CEO of Supermicro. Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing. While we acknowledge the potential of SMCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Business Insider
11-06-2025
- Business
- Business Insider
SMCI, MSTR, or UBER: Which Is the Most Attractive Large-Cap Stock?
Investors often look for opportunities to invest in large-cap stocks as they are generally associated with companies having a well-established business model and solid growth potential. The large-cap stocks have a market capitalization between $10 billion and $200 billion. Using TipRanks' Stock Comparison Tool, we placed Super Micro Computer (SMCI), Strategy (MSTR), and Uber Technologies (UBER) against each other to find the most attractive large-cap stock, according to Wall Street analysts. Confident Investing Starts Here: Super Micro Computer (NASDAQ:SMCI) Super Micro Computer, or Supermicro, offers AI server and storage solutions. SMCI stock has rallied about 41% so far in 2025, with issues like delayed filing of financial statements and the threat of delisting in the rearview mirror. In fact, investors are looking beyond the company's dismal results for the third quarter of Fiscal 2025, as they believe that SMCI is well-positioned to capture growth opportunities in the AI server market. Specifically, Super Micro Computer's DLC (direct liquid cooling) technology has an edge over rivals' offerings in terms of power and cost savings. Also, deals such as the $20 billion partnership with DataVolt to develop hyperscale AI campuses in Saudi Arabia and the U.S. have bolstered investors' confidence in SMCI stock. What Is the Forecast for SMCI Stock? Last month, Mizuho analyst Vijay Rakesh raised the price target for SMCI stock to $40 from $32 but retained a Hold rating. The 5-star analyst upgraded price targets for many AI server-related stocks to reflect increased demand and momentum across the supply chain. While Rakesh acknowledges Super Micro Computer's leadership in AI server deployments, he maintains a neutral stance owing to intense rivalry and weak AI server margins. Overall, Wall Street has a Moderate Buy consensus rating on Super Micro Computer stock based on six Buys, five Holds, and one Sell recommendation. The average SMCI stock price target of $40.83 indicates about 5% downside risk. Strategy (NASDAQ:MSTR) Strategy, earlier known as MicroStrategy, is the world's largest Bitcoin (BTC-USD) treasury company. It also offers AI-powered enterprise analytics software. MSTR stock is considered to be an attractive crypto play and an alternative to making a direct investment in the largest cryptocurrency, Bitcoin. Interestingly, Strategy accumulates Bitcoin by using proceeds from equity and debt financings, as well as cash flows from its operations. Based on its latest purchase of 1045 Bitcoin units between June 3 and 8, Strategy now holds 582,000 BTC, having a value of $63.8 billion. Is MSTR a Buy, Hold, or Sell? Recently, TD Cowen analyst Lance Vitanza reiterated a Buy rating on Strategy stock with a price target of $590. Commenting on MSTR's offering for its Strife (STRF) preferred stock, the 5-star analyst stated that he expects this offering to create significantly greater accretion for common shareholders compared to the company's common stock and STRK (Strike) at-the-money offerings. Vitanza continues to view MSTR stock as a 'compelling vehicle for bitcoin investors.' However, Monness analyst Gustavo Gala has a Sell rating on MSTR stock due to several reasons, including rising competition from companies like GameStop (GME), which are also following a Bitcoin-focused strategy. Overall, Wall Street has a Strong Buy consensus rating on Strategy stock based on 12 Buys and one Sell recommendation. The average MSTR stock price target of $524.92 implies about 34.2% upside potential. MSTR stock has risen 35% year-to-date. Uber Technologies (NYSE:UBER) Ride-hailing and delivery platform Uber Technologies is impressing investors with its resilient performance despite macro challenges and intense competition. The company continues to strengthen its consumer base and enhance its profitability through strong top-line growth and operational efficiency. Moreover, Uber addressed investors' fears about the impact of autonomous vehicle (AV) adoption on its ride-sharing business by turning it into an opportunity via multiple strategic deals, including that with Alphabet's (GOOGL) Waymo. On Tuesday, Uber announced a partnership with U.K.-based AV startup Wayve to launch a fully driverless robotaxi service in London. Is UBER Stock a Buy or Sell Right Now? Following the announcement of the launch date of Tesla's Robotaxi offering in Austin, BMO Capital analyst Brian Pitz reiterated a Buy rating on Uber Technologies stock with a price target of $101, calling it a Top Pick. The 5-star analyst stated that the pullback in UBER stock in reaction to this news was expected. That said, Pitz remains bullish on UBER stock due to its continued international expansion (including the purchase of Denmark's largest Taxi company, Dantaxi), persistent favorable trends for AV adoption in Austin, and ongoing innovation in both Mobility and Eats. Pitz contends that investors' concerns look overblown, as recent data in Austin remains robust for Uber and the overall U.S. user base remains stable. Additionally, he highlighted that the difference in scale, with Tesla's (TSLA) initial strategy of 10-20 vehicles in Austin on Day 1 vs. hundreds of Waymo vehicles on the Uber platform in the upcoming months creating a favorable backdrop for Uber. Overall, Pitz believes that Uber Technologies remains an 'AV Winner,' with over 15 AV partners and the upcoming launch of shared AV Rides in 2026. With 30 Buys and four Holds, Uber Technologies stock scores a Strong Buy consensus rating. The average UBER stock price target of $99 indicates a 15% upside potential. UBER stock has rallied 43% year-to-date. Conclusion Wall Street is highly bullish on Strategy and Uber Technologies stocks and cautiously optimistic on Super Micro Computer. Analysts currently see higher upside potential in MSTR than in the other two large-cap stocks. Wall Street is upbeat on Strategy stock, as it is an attractive Bitcoin proxy. Investors should be aware of the fact that, given its crypto exposure, MSTR stock is a high-risk, high-reward play.
