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Super Micro Computer (SMCI) Unveils IoT and Embedded Systems

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Super Micro Computer (SMCI - Free Report) introduced new IoT and embedded systems, including SYS-E100, the SYS-E102, the SYS-E111AD and an updated SYS-E403, utilizing the latest Intel’s (INTC - Free Report) Atom and Core Central Processing Units (CPUs).

In addition, Super Micro Computer launched SYS-E100-14AM and SYS-E102-14AM servers that feature Intel Atom x7000RE processors, offering low-power, high-efficiency compute performance. These ultra-compact systems offer a Small Outline Dual In-line Memory Module, 16GB DDR5 SODIMM. It also offers dual 2.5 GbE LAN ports, USB 3.2 ports, and an M.2 B/E/M-key.

Further, the company unveiled the SYS-E100 fanless system, which offers a temperature range of -20°C to 70°C, reducing moving parts and dust resistance. All models work with variable power supply from 9-36V, enabling easy integration in industrial environments.

SMCI is expected to gain solid traction across edge applications on the back of these new devices.

Expanding Server and Storage Systems Portfolio

Apart from the new launches, the company introduced a diverse portfolio of infrastructure solutions for 5G and telecom workloads, using 5th Gen Intel Xeon processors, AMD EPYC 8004 Series processors, and NVIDIA’s (NVDA - Free Report) Grace Hopper Superchip, enhancing performance and efficiency.

This includes a high-density ARS-111GL-NHR system using the NVIDIA Grace Hopper Superchip. This compact 1U chassis features an integrated CPU, H100 GPU, NVLink interconnect, 576GB coherent memory, and 2 PCIe slots for NVIDIA BlueField-3 or ConnectX-7. It also includes The SYS-211E, an ultra-short depth 5G edge platform with a 5th Gen Intel Xeon processor, enhancing performance per watt by 36%. It allows efficient 5G network operation, reduces operating costs, and supports public telecom and private networks.

Further, the company unveiled new AI systems, including NVIDIA HGX B100 8-GPU and HGX B200 8-GPU systems and 4U NVIDIA HGX B200 8-GPU liquid-cooled system, among others. These products are built upon Supermicro's proven HGX and MGX system architecture, optimizing for the new capabilities of NVIDIA Blackwell GPUs.

Additionally, Super Micro Computer expanded its server portfolio with the addition of Supermicro X13 systems. These utilize 5th Gen Intel Xeon processors, offering enhanced security, higher core count, and increased performance, with a 36% higher average performance/watt across workloads.

Wrapping Up

All the above-mentioned endeavors will allow the company to capitalize on growth opportunities present in the server storage market. Per a Technavio report, the global server storage market is expected to grow by $87.7 billion, implying a CAGR of 27.1% during the forecast period of 2023-2028.

Solidifying prospects across the server storage market is expected to benefit the Server and Storage Systems segment, which remains the key growth catalyst for the company. Its shares have gained 226.6% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 11.4%.

The strengthening Server and Storage Systems segment is expected to aid its overall financial performance in the near term.

The Zacks Consensus Estimate for 2024 total revenues stands at $14.76 billion, indicating a sharp rise from the year-ago quarter’s reported figure of $7.12 billion.

The consensus mark for earnings is pegged at $5.97 per share, suggesting a jump from the prior-year quarter’s figure of $1.63 per share.

Zacks Rank & Stocks to Consider

Currently, SMCI carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Applied Materials (AMAT - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Applied Materials have gained 28.8% in the year-to-date period. The long-term earnings growth rate for AMAT is 16.85%.

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