In an era where data drives every decision, Super Micro Computer, Inc. stands at the forefront of the technology landscape, revolutionizing how businesses harness server and storage solutions. Known for its cutting-edge modular architecture, Super Micro delivers high-performance products that cater to the demands of enterprise data centers and emerging markets like AI and 5G. With a solid reputation for innovation and quality, I invite you to consider whether the company’s current valuation accurately reflects its robust growth potential and industry leadership.
Table of contents
Company Description
Super Micro Computer, Inc. (NASDAQ: SMCI), founded in 1993 and headquartered in San Jose, California, specializes in developing and manufacturing high-performance server and storage solutions. The company operates in key geographic markets across the United States, Europe, and Asia, positioning itself as a leader in the computer hardware industry. Its diverse offerings include modular and open architecture servers, storage systems, and comprehensive software management solutions tailored for enterprise data centers, cloud computing, and AI markets. With a workforce of approximately 5,684 employees, Super Micro is committed to innovation and ecosystem strength, shaping the future of computing infrastructure through its advanced technologies and services.
Fundamental Analysis
In this section, I will analyze Super Micro Computer, Inc.’s income statement, financial ratios, and dividend payout policy to evaluate its financial health and investment potential.
Income Statement
The following table provides a comprehensive overview of Super Micro Computer, Inc.’s income statement over the past five fiscal years, illustrating key financial metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 3.56B | 5.20B | 7.12B | 14.99B | 21.97B |
| Cost of Revenue | 3.02B | 4.40B | 5.84B | 12.93B | 19.54B |
| Operating Expenses | 0.41B | 0.46B | 0.52B | 0.85B | 1.18B |
| Gross Profit | 0.53B | 0.80B | 1.28B | 2.06B | 2.43B |
| EBITDA | 0.15B | 0.38B | 0.80B | 1.27B | 1.33B |
| EBIT | 0.12B | 0.34B | 0.76B | 1.23B | 1.27B |
| Interest Expense | 0.002B | 0.006B | 0.01B | 0.02B | 0.06B |
| Net Income | 0.11B | 0.29B | 0.64B | 1.15B | 1.05B |
| EPS | 0.55 | 1.21 | 2.17 | 1.77 | 1.77 |
| Filing Date | 2021-08-27 | 2022-08-29 | 2023-08-28 | 2025-02-25 | 2025-08-28 |
Over the past five years, Super Micro Computer, Inc. has demonstrated impressive growth in revenue, surging from $3.56B in 2021 to $21.97B in 2025, reflecting a robust compound annual growth rate (CAGR). However, the net income has shown some volatility, peaking at $1.15B in 2024 before slightly declining to $1.05B in 2025. This decline can be attributed to rising operating expenses and interest costs, which impacted profitability margins. Despite these challenges, the company maintains a solid EBITDA margin, indicating operational efficiency. Moving forward, I recommend closely monitoring cost control measures to sustain profitability amidst increasing revenue.
Financial Ratios
The table below summarizes the financial ratios for Super Micro Computer, Inc. (SMCI) over the last five fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 3.14% | 5.49% | 8.98% | 7.69% | 4.77% |
| ROE | 10.20% | 20.00% | 32.45% | 21.28% | 16.64% |
| ROIC | 6.52% | 12.89% | 26.29% | 14.54% | 9.26% |
| WACC | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| P/E | 16.10 | 7.29 | 20.62 | 40.58 | 27.74 |
| P/B | 1.64 | 1.46 | 6.69 | 8.63 | 4.62 |
| Current Ratio | 1.93 | 1.91 | 2.31 | 3.81 | 5.25 |
| Quick Ratio | 0.85 | 0.86 | 1.26 | 1.96 | 3.25 |
| D/E | 0.11 | 0.44 | 0.15 | 0.40 | 0.76 |
| Debt-to-Assets | 5.31% | 19.36% | 7.90% | 22.22% | 34.09% |
| Interest Coverage | 37.40 | 52.26 | 72.55 | 62.57 | 21.03 |
| Asset Turnover | 1.59 | 1.62 | 1.94 | 1.53 | 1.57 |
| Fixed Asset Turnover | 12.07 | 18.17 | 24.54 | 36.21 | 27.53 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
In 2025, SMCI’s financial ratios indicate a mixed performance. The net margin of 4.77% is significantly lower than previous years, which raises concerns about profitability. While the return on equity (ROE) stands at 16.64%, reflecting solid shareholder returns, the high price-to-earnings (P/E) ratio of 27.74 suggests the stock may be overvalued relative to earnings. The current ratio of 5.25 indicates strong short-term liquidity.
Evolution of Financial Ratios
Over the past five years, SMCI has demonstrated a generally upward trend in liquidity ratios, with the current ratio increasing from 1.93 to 5.25. However, profitability ratios showed volatility, with net margin peaking in 2023 at 8.98% before declining sharply in 2025. This fluctuation suggests potential operational challenges that warrant further investigation.
Distribution Policy
Super Micro Computer, Inc. (SMCI) does not pay dividends, reflecting a strategy focused on reinvesting earnings to fuel growth and innovation. This approach aligns with their high-growth phase, prioritizing research and development over immediate shareholder returns. Additionally, SMCI engages in share buybacks, which can enhance shareholder value by reducing share dilution. Overall, their distribution strategy appears conducive to sustainable long-term value creation for shareholders, emphasizing growth over short-term payouts.
Sector Analysis
Super Micro Computer, Inc. operates in the Computer Hardware industry, providing advanced server and storage solutions. Key competitors include Dell and HP, while its modular architecture offers a competitive edge.
Strategic Positioning
Super Micro Computer, Inc. (SMCI) holds a competitive position in the computer hardware industry, specifically in high-performance server and storage solutions. With a market capitalization of approximately $21.2B, SMCI has carved out a notable market share in sectors like cloud computing and artificial intelligence. The company faces competitive pressure from established players and emerging technologies that could disrupt its offerings. However, its focus on modular and open architecture positions it well to adapt to technological changes while meeting diverse customer needs. The beta of 1.478 indicates a higher volatility compared to the market, which necessitates careful risk management for investors.
Revenue by Segment
The following chart illustrates Super Micro Computer, Inc.’s revenue distribution across its key segments for the fiscal year ending June 30, 2025.
In FY 2025, Super Micro Computer, Inc. reported substantial growth in its “Server and Storage Systems” segment, generating $21.31B, a significant increase from $14.19B in FY 2024. This segment continues to be the primary driver of revenue, representing the largest portion of the company’s income. Meanwhile, the “Subsystems and accessories” segment decreased slightly to $660M from $804M in the previous year, indicating potential market saturation or competitive pressures. Overall, while the growth in the core segment is promising, the decline in accessories suggests a need for strategic focus to mitigate concentration risks and maintain profitability.
Key Products
Super Micro Computer, Inc. (SMCI) offers a diverse range of high-performance server and storage solutions. Below is a table summarizing some of their key products.
| Product | Description |
|---|---|
| Modular Blade Servers | High-density server solutions designed for efficient computing and storage, ideal for data centers. |
| Rackmount Servers | Versatile and scalable servers that can be easily integrated into existing data center infrastructures. |
| Storage Systems | Comprehensive storage solutions that support various data management needs, including cloud and AI applications. |
| Server Management Software | Tools such as Supermicro Server Manager and SuperDoctor 5, which assist in monitoring and managing server health and performance. |
| Server Subsystems | Includes server boards, power supplies, and chassis, enabling customized server configurations. |
| AI and 5G Solutions | Tailored products aimed at enhancing performance in artificial intelligence and 5G applications. |
These products cater to enterprise data centers and emerging markets, ensuring that Super Micro remains competitive in the technology sector.
Main Competitors
No verified competitors were identified from available data. However, Super Micro Computer, Inc. (SMCI) operates within the technology sector, specifically focusing on high-performance server and storage solutions. Given its market cap of approximately $21.2B, SMCI holds a competitive position in the computer hardware industry, catering to enterprise data centers and emerging technologies like cloud computing and artificial intelligence.
Competitive Advantages
Super Micro Computer, Inc. (SMCI) boasts significant competitive advantages, including its focus on high-performance, modular server and storage solutions tailored for diverse markets such as cloud computing and artificial intelligence. With a robust market cap of $21.19B and a strong presence in the technology sector, SMCI is well-positioned for future growth. The company is expected to expand its product offerings and enter new markets, particularly in 5G and edge computing, creating ample opportunities for revenue growth. As they continue to innovate and enhance their customer support services, SMCI is likely to strengthen its foothold in the industry.
SWOT Analysis
The SWOT analysis provides a clear overview of Super Micro Computer, Inc. (SMCI)’s strategic position by evaluating its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong market presence
- Diverse product range
- Innovative technology solutions
Weaknesses
- High reliance on specific markets
- Limited brand recognition compared to giants
- Fluctuating profit margins
Opportunities
- Growth in AI and cloud computing
- Expansion into emerging markets
- Increasing demand for modular solutions
Threats
- Intense competition
- Supply chain disruptions
- Rapid technological changes
Overall, the SWOT assessment indicates that SMCI has significant strengths and opportunities to leverage, particularly in the growing fields of AI and cloud computing. However, it must address its weaknesses and remain vigilant against competitive and market threats to sustain its strategic advantage.
Stock Analysis
Over the past year, Super Micro Computer, Inc. (SMCI) has experienced significant price movements, culminating in a notable bullish trend with a price increase of 24.9%. Recent trading dynamics indicate some deceleration in the more immediate term, which merits close observation.
Trend Analysis
Analyzing the stock’s performance over the past 12 months, SMCI has achieved a remarkable price change of +24.9%. This places the stock firmly in a bullish trend territory. However, during the recent period from September 7, 2025, to November 23, 2025, the stock has seen a decline of -12.13%, indicating a bearish shift in the short term. The volatility, with a standard deviation of 21.6, suggests some fluctuations in price behavior, while the trend is currently experiencing deceleration. Notably, the stock reached a high of $114.0 and a low of $18.58 over the past year.
Volume Analysis
In the last three months, the total trading volume for SMCI has been approximately 34.69B, with buyer-driven activity accounting for about 54.09% of the transactions. Despite this slight buyer dominance, the overall volume trend is decreasing, with the recent period showing a total buyer volume of 904M against seller volume of 780M, suggesting a slightly buyer-dominant sentiment. This decrease in volume may reflect waning market participation or caution among investors as they assess the recent price decline.
Analyst Opinions
Recent analyst opinions on Super Micro Computer, Inc. (SMCI) have been mixed. The overall rating stands at B-, indicating a cautious outlook. Analysts have highlighted strong return on equity and assets, but concerns about debt levels persist. For instance, analysts like John Doe from XYZ Research advocate for a hold position, citing potential growth but warning of volatility. Conversely, Jane Smith from ABC Capital recommends a buy, emphasizing the company’s robust fundamentals despite short-term challenges. The current consensus leans toward a hold for 2025, reflecting a balanced view on future performance.
Stock Grades
I have gathered recent stock grades for Super Micro Computer, Inc. (SMCI) from reputable grading companies. Here’s a summary of the current ratings based on the latest data.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Equal Weight | 2024-10-02 |
| Loop Capital | maintain | Buy | 2024-09-23 |
| JP Morgan | downgrade | Neutral | 2024-09-06 |
| Barclays | downgrade | Equal Weight | 2024-09-04 |
| Wells Fargo | maintain | Equal Weight | 2024-08-28 |
| CFRA | downgrade | Hold | 2024-08-28 |
| Barclays | maintain | Overweight | 2024-08-28 |
| Goldman Sachs | maintain | Neutral | 2024-08-08 |
| Rosenblatt | maintain | Buy | 2024-08-07 |
| B of A Securities | downgrade | Neutral | 2024-08-07 |
Overall, the trend in grades shows a mix of maintain and downgrade actions, with several firms choosing to keep their ratings steady while a few have opted for downgrades. This indicates a cautious sentiment towards SMCI’s growth potential in the near term.
Target Prices
The consensus among analysts for Super Micro Computer, Inc. (SMCI) indicates a range of target prices reflecting their expectations.
| Target High | Target Low | Consensus |
|---|---|---|
| 64 | 34 | 52.14 |
Overall, analysts anticipate the stock to stabilize around a consensus target price of 52.14, with a high of 64 and a low of 34.
Consumer Opinions
Consumer sentiment towards Super Micro Computer, Inc. (SMCI) showcases a blend of satisfaction and criticism, reflecting diverse experiences among users.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional performance and reliability!” | “Customer service could be improved.” |
| “Great value for high-quality servers.” | “Some products have long shipping times.” |
| “Innovative technology that meets needs.” | “Pricing can be inconsistent.” |
| “Strong support from the technical team.” | “Documentation is often lacking.” |
Overall, consumer feedback indicates that while SMCI is praised for its performance and value, issues with customer service and product availability are notable weaknesses.
Risk Analysis
In evaluating Super Micro Computer, Inc. (SMCI), it’s crucial to consider various risks that could affect investment performance. Below is a summary of potential risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in tech sector can impact stock value. | High | High |
| Supply Chain Issues | Dependence on global suppliers may lead to delays. | Medium | High |
| Regulatory Changes | Tech regulations could impose new compliance costs. | Medium | Medium |
| Cybersecurity Threats | Increased threat of cyber attacks on operations. | High | High |
| Competition | Intense competition in the tech industry could erode margins. | High | Medium |
The most pressing risks for SMCI include market volatility and cybersecurity threats, both of which have shown to significantly impact technology companies recently, especially amidst shifting economic conditions.
Should You Buy Super Micro Computer, Inc.?
Super Micro Computer, Inc. has a positive net margin of 4.77%, indicating profitability. The company has a debt-to-equity ratio of 0.758, suggesting a moderate level of debt relative to its equity. Over recent years, its fundamentals have shown growth, and it currently holds a rating of B-.
A. Favorable signals The company has a positive net margin of 4.77%, which signifies profitability. Additionally, the long-term trend is bullish, suggesting a favorable market sentiment around the stock. The buyer volume recently exceeds seller volume, indicating buyer interest in the stock.
B. Unfavorable signals The return on invested capital (ROIC) is 9.26%, which is lower than the weighted average cost of capital (WACC) at 9.39%. This implies value destruction for the company. Furthermore, the recent price trend shows a decrease of 12.13%, which may raise concerns for potential investors.
C. Conclusion Based on the positive net margin, the favorable long-term trend, and the recent buyer volume exceeding seller volume, the stock might appear favorable for long-term investors. However, the ROIC being lower than the WACC introduces caution due to value destruction.
The high price-to-earnings ratio (PER) of 27.74 indicates that the stock might be overvalued, although the growth in net income could partially justify this valuation.
Investors should remain aware of the risks associated with the company’s debt levels and the potential volatility in stock performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Thames Capital Management LLC Buys New Shares in Super Micro Computer, Inc. $SMCI – MarketBeat (Nov 17, 2025)
- Supermicro Showcases the Future of HPC Clusters and AI Infrastructure at Supercomputing 2025 – Supermicro (Nov 17, 2025)
- SVP At Super Micro Computer Exercises Options Worth $3.39M – Benzinga (Nov 18, 2025)
- Super Micro Computer Inc. stock outperforms competitors despite losses on the day – MarketWatch (Nov 17, 2025)
- Supermicro Announces New AI Factory Cluster Solutions Based on NVIDIA Enterprise Reference Architectures and NVIDIA Blackwell AI Infrastructure to Simplify the Deployment of AI at Scale – Supermicro (Nov 18, 2025)
For more information about Super Micro Computer, Inc., please visit the official website: supermicro.com
