Latest news with #SuperMicro
Yahoo
32 minutes ago
- Business
- Yahoo
Wall Street Says Supermicro Stock Could Gain 60% in a Year
Super Micro Computer (SMCI) has weathered significant volatility in recent times, with its stock experiencing a rollercoaster ride. After reaching significant highs, the stock experienced steep declines due to a range of concerns, including allegations of accounting irregularities and a delay in filing its financial reports with the SEC. Nonetheless, SMCI stock has made an impressive recovery recently, climbing 50% year-to-date. 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Supermicro's stock came under heavy pressure following headlines that shook investor confidence. Allegations of accounting irregularities and a delay in filing annual reports sparked concerns about the possibility of delisting from the Nasdaq Exchange. The company eventually filed its financials, avoiding that outcome, but the damage to investor sentiment was already done. Adding to this were disappointing quarterly earnings. For its fiscal Q3 2025, Supermicro reported $4.6 billion in revenue, a 19% increase year-over-year but a 19% drop quarter-over-quarter. The results missed Wall Street's expectations, mainly due to customers holding back purchases amid uncertainty around new AI platform transitions, particularly Nvidia's (NVDA) move from Hopper to Blackwell GPU architecture. These delays contributed to the shortfall in expectations and added further pressure on the stock. These issues, however, now appear to be in the rearview mirror as those delays are beginning to turn into future growth opportunities. As customers resume spending, Supermicro appears poised to regain momentum. Furthermore, Supermicro recently announced a $20 billion partnership with Saudi Arabia-based DataVolt, which significantly boosted its stock. This deal strengthens the company's demand pipeline and will support future growth. Given these positive developments and continued investments in artificial intelligence (AI) infrastructure, SMCI stock is likely to trend higher. The highest price target for Supermicro stock is $70, courtesy of Loop Capital analyst Ananda Baruah. This target implies nearly 60% upside potential from here. Supermicro is well-positioned to benefit from secular tailwinds in the AI infrastructure market. The company specializes in building high-performance server and storage systems, many of which are now tailored specifically for AI workloads. This provides a significant runway for growth, as it strengthens the company's position to capitalize on AI demand. Thanks to the solid demand, over 70% of Supermicro's total revenue is now derived from AI GPU platforms, reflecting that the company could deliver significant growth as investments in AI continue to rise. Further, to meet the growing demand, Supermicro continues to expand its product portfolio. It has ramped up the production of its Data Center Building Block Solutions (DCBBS), which offer energy-efficient systems for next-generation computing. The company continues to roll out new products, including a range of air-cooled and liquid-cooled AI systems and racks. It has broadened its platform support to include AMD's newest AI accelerators. The expansion of SMCI's product portfolio is expected to help drive its market share higher. Supermicro is strengthening its leadership in the high-performance computing space with its technology to reduce environmental impact. The company's direct liquid cooling (DLC) technology helps lower energy costs, a critical factor as AI workloads become increasingly power-hungry. Furthermore, the rollout of its second-generation DLC-2 system will offer improved energy efficiency and thermal performance, which is expected to drive demand. Moreover, Supermicro's DCBBS reduces the time and complexity involved in building modern data centers. As the demand for scalable, plug-and-play infrastructure grows, DCBBS could become a significant growth driver for the company. The growing use of AI, which requires enhanced data center capabilities, will substantially increase demand for Supermicro's products. Supermicro's ability to design and deliver customized hardware solutions will help meet the specific needs of AI-driven workloads, strengthening its competitive positioning. Moreover, its focus on innovation, including energy-efficient green computing products and enhanced production of its DCBBS, positions it well to gain a higher market share. Analysts maintain a 'Moderate Buy' consensus rating on SMCI stock. However, given the strength of its product lineup and the booming demand in the AI and data center spaces, it wouldn't be surprising to see Supermicro's stock push toward the $70 mark in the near future. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
a day ago
- Business
- Yahoo
Malaysia, Singapore Probe Nvidia-Powered AI Exports
Malaysian and Singaporean authorities are probing whether Chinese firms breached U.S. export controls by funneling Nvidia (NASDAQ:NVDA)-powered servers through Southeast Asia to train AI models. Malaysian trade regulators say they're verifying reports that Chinese engineers flew into Kuala Lumpur last March with suitcases full of high-end Nvidia server hardware. Simultaneously, Singapore's law minister flagged a parallel fraud investigation: Dell (NYSE:DELL) and Super Micro (NASDAQ:SMCI) serverspotentially fitted with U.S.-restricted chipswere shipped from Singapore to Malaysia under possibly false destination claims. Warning! GuruFocus has detected 3 Warning Sign with DELL. These moves come amid shifting U.S. export curbs on advanced AI semiconductorsrestrictions that have swung between the Biden and Trump administrationsand scrutiny of startups like DeepSeek for allegedly sidestepping those rules via third-party routes. AI workloads depend on accelerators like Nvidia's GPUs, making access to these chips a national-security flashpoint. If export-control loopholes are widespread, they could undermine U.S. policy objectives, tighten hardware supply for legitimate buyers and force cloud and AI providers to rethink sourcing strategies. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Supermicro (SMCI) Expands Its AI Infrastructure Ecosystem with Global Alliances
Super Micro Computer Inc. (NASDAQ:SMCI) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Super Micro signed an agreement with Ericsson to explore a potential collaboration aimed at speeding up Edge AI adoption. The proposed partnership would combine Super Micro's high-performance Edge AI compute platforms with Ericsson's enterprise 5G connectivity solutions. A computer network engineering team setting up a server array in a data center. The companies plan to offer integrated commercial solutions that help enterprises deploy AI at the edge more efficiently. The offering is expected to enable businesses in retail, manufacturing, healthcare, and other industries to rapidly deploy Edge AI infrastructure along with wireless connectivity. This initiative leverages Supermicro's strengths in delivering energy-efficient, workload-optimized edge systems, aligning with the growing demand for Edge AI processing. By collaborating with Ericsson, Super Micro is positioning its platforms as part of a broader, ready-to-deploy ecosystem that addresses both compute and connectivity requirements. Supermicro also recently signed an agreement with DataVolt to develop large-scale AI campuses in Saudi Arabia, marking a significant step in the region's digital infrastructure growth. The planned facilities will utilize Supermicro's high-density GPU platforms and advanced liquid cooling systems, aiming to enhance energy efficiency and reduce operational costs. While final terms are still being negotiated, the companies expect the AI-related products involved in the deal to be worth at least $20 billion, highlighting the scale of the initiative. This move positions both companies at the forefront of sustainable, next-generation AI infrastructure. Super Micro Computer Inc. (NASDAQ: SMCI) designs high-performance and energy-efficient server and storage systems tailored for various industries. Its key markets include cloud service providers, enterprises, large data centers, original equipment manufacturers (OEM), and appliance manufacturers. 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
2 days ago
- Business
- Yahoo
Supermicro (SMCI) Expands Its AI Infrastructure Ecosystem with Global Alliances
Super Micro Computer Inc. (NASDAQ:SMCI) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Super Micro signed an agreement with Ericsson to explore a potential collaboration aimed at speeding up Edge AI adoption. The proposed partnership would combine Super Micro's high-performance Edge AI compute platforms with Ericsson's enterprise 5G connectivity solutions. A computer network engineering team setting up a server array in a data center. The companies plan to offer integrated commercial solutions that help enterprises deploy AI at the edge more efficiently. The offering is expected to enable businesses in retail, manufacturing, healthcare, and other industries to rapidly deploy Edge AI infrastructure along with wireless connectivity. This initiative leverages Supermicro's strengths in delivering energy-efficient, workload-optimized edge systems, aligning with the growing demand for Edge AI processing. By collaborating with Ericsson, Super Micro is positioning its platforms as part of a broader, ready-to-deploy ecosystem that addresses both compute and connectivity requirements. Supermicro also recently signed an agreement with DataVolt to develop large-scale AI campuses in Saudi Arabia, marking a significant step in the region's digital infrastructure growth. The planned facilities will utilize Supermicro's high-density GPU platforms and advanced liquid cooling systems, aiming to enhance energy efficiency and reduce operational costs. While final terms are still being negotiated, the companies expect the AI-related products involved in the deal to be worth at least $20 billion, highlighting the scale of the initiative. This move positions both companies at the forefront of sustainable, next-generation AI infrastructure. Super Micro Computer Inc. (NASDAQ: SMCI) designs high-performance and energy-efficient server and storage systems tailored for various industries. Its key markets include cloud service providers, enterprises, large data centers, original equipment manufacturers (OEM), and appliance manufacturers. 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 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
