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Despite this rise in the stock price, Super Micro Computer offers to its investors at current levels. Currently, SMCI is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.34X compared with the industry’s 3.05X. The undervaluation is further substantiated by Zacks Value Score of B.
SMCI Forward-12 Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
SMCI Gains From Partnership With Leading Chip Companies
Super Micro Computer is increasingly positioning itself as a complete AI infrastructure provider rather than a conventional server manufacturer. SMCI’s close collaboration with leading AI-chip vendors, including Intel (INTC - Free Report) , NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) , enables the company to align system designs with their product-release schedules, helping SMCI accelerate time-to-market and reduce system-level issues.
SMCI is shipping volume systems based on the NVIDIA GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro platforms, while preparing first-to-market systems for NVIDIA’s Vera Rubin VRNVL72, Rubin HGX and Vera C1 platforms. With Advanced Micro Devices, SMCI launched the complete Helios product line and MI450 Total Solution, alongside continued momentum for EPYC CPUs and MI350 and MI355X platforms.
The breadth of these partnerships strengthens SMCI’s position as AI infrastructure evolves from individual GPU servers toward complete rack-scale deployments. The company’s NVIDIA and Advanced Micro Devices platforms can be integrated into its Data Center Building Block Solutions (DCBBS), which combine compute, storage, networking, power, direct liquid cooling, software and services.
SMCI is also scaling the infrastructure required to support these partner platforms. Its fiscal 2027 plan calls for more than 6,000 racks of monthly capacity, split between roughly 3,000 direct-liquid-cooled and 3,000 air-cooled racks, with 240kW racks expected to enter volume production and 500kW systems approaching. The company’s DCBBS portfolio also includes cooling distribution units, chilled doors, power shelves, battery backup, switches and data-center management software giving customers one shop stop advantage.
SMCI Benefits From Record Backlog and Rising Shipments
SMCI’s fiscal 2026 revenues nearly doubled to $39.1 billion, while the company generated more than $60 billion in new orders during the fourth quarter, taking the backlog to record levels entering fiscal 2027. The AI solutions represented about 60% of SMCI’s fourth-quarter fiscal 2026 revenues because several large projects shifted timing, but management expects AI-related solutions to exceed 80% of revenue going forward based on backlog.
The company guided for fiscal 2027 sales of $65 billion to $72 billion and first-quarter sales of $14.5 billion to $15.5 billion. Demand across AI training, inference, NeoCloud and sovereign deployments therefore remains the main foundation for Super Micro Computer’s longer-term expansion. Super Micro Computer continues to emphasize early availability of new AI systems integrated with NVIDIA, Advanced Micro Devices and Intel chips as a competitive advantage.
Intel Xeon 6+ platforms are shipping in volume, and the company is developing systems for Arm-based AGI processors. Broad support across multiple processor ecosystems gives customers more deployment choices and can help the company participate in successive AI platform transitions.
SMCI’s non-GAAP gross margin rose to 17.6% in fourth-quarter fiscal 2026 from 10.1% in the prior quarter. For SMCI, 75% of the sequential improvement came from favorable mix, including contracts that shifted into fiscal 2027. Lower tariff costs and inventory reserves were also tailwinds. For the first quarter of fiscal 2027, non-GAAP adjusted earnings were $1.01-$1.10 per share. The Zacks Consensus Estimate for SMCI’s first quarter of fiscal 2027 earnings is pegged at $1.06, indicating a year-over-year rise of 200%. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Conclusion: Buy SMCI Stock Now
SMCI’s strong partnerships with NVIDIA, AMD and Intel, combined with record backlog, rising shipments and expanding DCBBS capabilities, position the company to benefit from sustained AI infrastructure spending. Its growing liquid-cooling capacity, enterprise diversification and improving margins further support growth, although execution, project timing and competitive pressures remain key factors to monitor. Currently, SMCI sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
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SMCI Rises 29% Year to Date: Time to Buy, Sell or Hold the Stock?
Key Takeaways
Super Micro Computer (SMCI - Free Report) shares have gained 29.3% year to date compared with the Zacks Computer and Technology sector and Zacks Computer – Storage Devices industry’s appreciation of 16% and 221.3%, respectively
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
Despite this rise in the stock price, Super Micro Computer offers to its investors at current levels. Currently, SMCI is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.34X compared with the industry’s 3.05X. The undervaluation is further substantiated by Zacks Value Score of B.
SMCI Forward-12 Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
SMCI Gains From Partnership With Leading Chip Companies
Super Micro Computer is increasingly positioning itself as a complete AI infrastructure provider rather than a conventional server manufacturer. SMCI’s close collaboration with leading AI-chip vendors, including Intel (INTC - Free Report) , NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) , enables the company to align system designs with their product-release schedules, helping SMCI accelerate time-to-market and reduce system-level issues.
SMCI is shipping volume systems based on the NVIDIA GB300 NVL72, HGX B300, B200 NVL4 and RTX 6000 Pro platforms, while preparing first-to-market systems for NVIDIA’s Vera Rubin VRNVL72, Rubin HGX and Vera C1 platforms. With Advanced Micro Devices, SMCI launched the complete Helios product line and MI450 Total Solution, alongside continued momentum for EPYC CPUs and MI350 and MI355X platforms.
The breadth of these partnerships strengthens SMCI’s position as AI infrastructure evolves from individual GPU servers toward complete rack-scale deployments. The company’s NVIDIA and Advanced Micro Devices platforms can be integrated into its Data Center Building Block Solutions (DCBBS), which combine compute, storage, networking, power, direct liquid cooling, software and services.
SMCI is also scaling the infrastructure required to support these partner platforms. Its fiscal 2027 plan calls for more than 6,000 racks of monthly capacity, split between roughly 3,000 direct-liquid-cooled and 3,000 air-cooled racks, with 240kW racks expected to enter volume production and 500kW systems approaching. The company’s DCBBS portfolio also includes cooling distribution units, chilled doors, power shelves, battery backup, switches and data-center management software giving customers one shop stop advantage.
SMCI Benefits From Record Backlog and Rising Shipments
SMCI’s fiscal 2026 revenues nearly doubled to $39.1 billion, while the company generated more than $60 billion in new orders during the fourth quarter, taking the backlog to record levels entering fiscal 2027. The AI solutions represented about 60% of SMCI’s fourth-quarter fiscal 2026 revenues because several large projects shifted timing, but management expects AI-related solutions to exceed 80% of revenue going forward based on backlog.
The company guided for fiscal 2027 sales of $65 billion to $72 billion and first-quarter sales of $14.5 billion to $15.5 billion. Demand across AI training, inference, NeoCloud and sovereign deployments therefore remains the main foundation for Super Micro Computer’s longer-term expansion. Super Micro Computer continues to emphasize early availability of new AI systems integrated with NVIDIA, Advanced Micro Devices and Intel chips as a competitive advantage.
Intel Xeon 6+ platforms are shipping in volume, and the company is developing systems for Arm-based AGI processors. Broad support across multiple processor ecosystems gives customers more deployment choices and can help the company participate in successive AI platform transitions.
SMCI’s non-GAAP gross margin rose to 17.6% in fourth-quarter fiscal 2026 from 10.1% in the prior quarter. For SMCI, 75% of the sequential improvement came from favorable mix, including contracts that shifted into fiscal 2027. Lower tariff costs and inventory reserves were also tailwinds. For the first quarter of fiscal 2027, non-GAAP adjusted earnings were $1.01-$1.10 per share. The Zacks Consensus Estimate for SMCI’s first quarter of fiscal 2027 earnings is pegged at $1.06, indicating a year-over-year rise of 200%. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Conclusion: Buy SMCI Stock Now
SMCI’s strong partnerships with NVIDIA, AMD and Intel, combined with record backlog, rising shipments and expanding DCBBS capabilities, position the company to benefit from sustained AI infrastructure spending. Its growing liquid-cooling capacity, enterprise diversification and improving margins further support growth, although execution, project timing and competitive pressures remain key factors to monitor. Currently, SMCI sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.