We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SMCI's Server and Storage Segmental Revenues Surge: What Lies Ahead?
Read MoreHide Full Article
Key Takeaways
SMCI's server and storage revenues rose 50.2% YoY to $21.31B in fiscal 2025, nearing 97% of total revenues.
SMCI is experiencing strong AI server demand and plans for rack-scale production globally.
SMCI projects $36B revenues in fiscal 2026 and is expanding into client, edge and consumer AI system.
Super Micro Computer’s (SMCI - Free Report) server and storage revenues grew 50.2% year over year in fiscal 2025. The server and storage revenues surged from $6.5 billion in fiscal 2023 to $21.31 billion in fiscal 2025, indicating a massive growth driven by the rising demand for liquid and air-cooled GPU or PCIe-based AI Servers for training and inferencing.
In terms of revenue mix, the server and storage segment accounted for 92.2% of total revenues in fiscal 2023, increasing further to approximately 97% of the top line in fiscal 2025, highlighting the segment’s growing dominance within the company’s overall revenue base. Super Micro Computer’s high-performance and energy-efficient servers are gaining traction among AI data centers, HPC and hyperscalers.
Partnerships with vendors like NVIDIA and Advanced Micro Devices position Super Micro Computer to deliver the latest GPU-powered platforms, which remain in high demand among cloud providers and sovereign AI projects. Expansion in Europe, Asia and the Middle East offers additional growth avenues.
As the demand trend shifts toward rack-scale architecture, SMCI has planned to set up its upcoming facilities in the United States, Taiwan, Malaysia, the Netherlands, and the Middle East to have explicitly designed rack-level production, not just server assembly. The existing demand trend has led SMCI to project that it will achieve $36 billion in total revenues in fiscal 2026, indicating a massive 64% year-over-year growth.
Moreover, the company has now entered the client-edge consumer AI markets. SMCI’s expertise in AI-optimized servers, GPUs, and energy-efficient system design will help it deliver powerful yet compact solutions for PCs, edge AI, and embedded applications, challenging the incumbents. SMCI has unveiled a broad AI portfolio spanning Super AI Station, Supermicro SYS-542T-2R, Supermicro AI PC, Supermicro Edge AI Systems and Supermicro's Fanless Compact Edge System, challenging the existing players in this market.
How Competitors Fare Against SMCI
Super Micro Computer competes with Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) in the AI-based server market. Dell Technologies and Hewlett Packard Enterprise are both major suppliers of servers and storage systems, with a broad customer base across enterprises and cloud providers.
In the rack scale server domain, Dell provides solutions like Dell Integrated Rack 5000 Series for the highest level of GPU density in standard racks with advanced thermal management and Dell Integrated Rack 7000 Series with 21-inch open compute project standards meant to support multiple generations of CPUs and GPUs. Hewlett Packard Enterprise offers the ProLiant series.
In the AI-PC market, HP has a range of AI-based computing devices like HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop and HP OmniStudio PC, which are likely to gain traction among consumers, driving its top-line growth. Dell has numerous workstations that offer AI capabilities. These workstations are XPS 13, Inspiron 14 Plus, Inspiron 14, Latitude 7455 and Latitude 5455.
SMCI’s Price Performance, Valuation and Estimates
Shares of Super Micro Computer have plunged 37.6% in the past six months against the Zacks Computer – Storage Devices industry’s growth of 113%.
SMCI 6-Month Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.47, lower than the industry’s average of 2.25.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 4.85% and 37.9%, respectively. Estimates for fiscal 2026 and 2027 earnings have remained unchanged in the past 30 days.
Image: Bigstock
SMCI's Server and Storage Segmental Revenues Surge: What Lies Ahead?
Key Takeaways
Super Micro Computer’s (SMCI - Free Report) server and storage revenues grew 50.2% year over year in fiscal 2025. The server and storage revenues surged from $6.5 billion in fiscal 2023 to $21.31 billion in fiscal 2025, indicating a massive growth driven by the rising demand for liquid and air-cooled GPU or PCIe-based AI Servers for training and inferencing.
In terms of revenue mix, the server and storage segment accounted for 92.2% of total revenues in fiscal 2023, increasing further to approximately 97% of the top line in fiscal 2025, highlighting the segment’s growing dominance within the company’s overall revenue base. Super Micro Computer’s high-performance and energy-efficient servers are gaining traction among AI data centers, HPC and hyperscalers.
Partnerships with vendors like NVIDIA and Advanced Micro Devices position Super Micro Computer to deliver the latest GPU-powered platforms, which remain in high demand among cloud providers and sovereign AI projects. Expansion in Europe, Asia and the Middle East offers additional growth avenues.
As the demand trend shifts toward rack-scale architecture, SMCI has planned to set up its upcoming facilities in the United States, Taiwan, Malaysia, the Netherlands, and the Middle East to have explicitly designed rack-level production, not just server assembly. The existing demand trend has led SMCI to project that it will achieve $36 billion in total revenues in fiscal 2026, indicating a massive 64% year-over-year growth.
Moreover, the company has now entered the client-edge consumer AI markets. SMCI’s expertise in AI-optimized servers, GPUs, and energy-efficient system design will help it deliver powerful yet compact solutions for PCs, edge AI, and embedded applications, challenging the incumbents. SMCI has unveiled a broad AI portfolio spanning Super AI Station, Supermicro SYS-542T-2R, Supermicro AI PC, Supermicro Edge AI Systems and Supermicro's Fanless Compact Edge System, challenging the existing players in this market.
How Competitors Fare Against SMCI
Super Micro Computer competes with Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) in the AI-based server market. Dell Technologies and Hewlett Packard Enterprise are both major suppliers of servers and storage systems, with a broad customer base across enterprises and cloud providers.
In the rack scale server domain, Dell provides solutions like Dell Integrated Rack 5000 Series for the highest level of GPU density in standard racks with advanced thermal management and Dell Integrated Rack 7000 Series with 21-inch open compute project standards meant to support multiple generations of CPUs and GPUs. Hewlett Packard Enterprise offers the ProLiant series.
In the AI-PC market, HP has a range of AI-based computing devices like HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop and HP OmniStudio PC, which are likely to gain traction among consumers, driving its top-line growth. Dell has numerous workstations that offer AI capabilities. These workstations are XPS 13, Inspiron 14 Plus, Inspiron 14, Latitude 7455 and Latitude 5455.
SMCI’s Price Performance, Valuation and Estimates
Shares of Super Micro Computer have plunged 37.6% in the past six months against the Zacks Computer – Storage Devices industry’s growth of 113%.
SMCI 6-Month Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.47, lower than the industry’s average of 2.25.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 4.85% and 37.9%, respectively. Estimates for fiscal 2026 and 2027 earnings have remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
Super Micro Computer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.