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SMCI Expands its Server Portfolio: Is it the New Growth Catalyst?

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Key Takeaways

  • SMCI's server and storage revenues rose 10% year over year to $5.62B in fiscal Q4 2025.
  • The new 6U 20-Node MicroBlade server offers 70% space savings and 30% energy efficiency.
  • SMCI's early AI server launches on NVIDIA platforms, strengthening its position in the fast-growing AI market.

Super Micro Computer’s (SMCI - Free Report) high-performance and energy-efficient servers are gaining traction among AI data centers, HPC and hyperscalers. This growth is reflected in SMCI’s server and storage system segmental revenues, which grew 10% year over year in the fourth quarter of fiscal 2025 to reach a $5.62 billion milestone and account for 97.6% of its top line.

SMCI has now added a 6U 20-Node MicroBlade server to its portfolio, which is a high-density server with AMD’s EPYC 4005 Series Processors integrated inside it. This high-density server can fit 20 mini servers in a single 6U unit, making its 48U rack hold as many as 160 servers. This compactness not only saves 70% space but it also cuts down on 95% cabling, and is 30% energy efficient compared to traditional servers.

The 6U 20-Node MicroBlade server is optimal for cloud services, web hosting, AI tasks, gaming and enterprise workloads. This system comes with built-in Ethernet switches for simpler networking, supports up to 16 CPU cores and 192GB DDR5 memory per server, and comes with strong security features, such as TPM 2.0 and AMD Infinity Guard.

Super Micro Computer is one of the first companies to bring new AI servers to market, including systems built on NVIDIA’s B200 and GB200 platforms. This early availability gives Super Micro Computer a big edge in a fast-moving AI market. SMCI’s other platforms, like direct liquid cooling, data center building blocks and allied support products, are helping it evolve from a server provider to a full-stack technology giant.

How Competitors Fare Against SMCI

Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) are two major providers of traditional and AI servers and cooling technologies. Dell offers liquid cooling architectures through its Apex and PowerEdge platforms, while HPE offers liquid-cooled HPC and AI servers through its HPE Cray and Apollo systems.

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.

Dell Technologies is a major supplier of servers with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts. However, Dell Technologies has not grown as quickly as SMCI in AI-specific systems; its ability to bundle hardware with services makes it a strong rival.

SMCI’s Price Performance, Valuation and Estimates

Shares of SMCI have gained 58.5% year to date compared with the Zacks Computer- Storage Devices industry’s growth of 50.6%.

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Image Source: Zacks Investment Research

From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.84X, down from the industry’s average of 1.77X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SMCI’s fiscal 2026 earnings implies a year-over-year rise of 23%, and the same for fiscal 2027 indicates growth of 33%. The estimates for fiscal 2026 and 2027 have remained unchanged for the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

SMCI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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