Super Micro Computer

SMCI

Market cap $19.4B

After Nvidia (NVDA) dominated attention of the AI trade this week, George Tsilis turns to a stock that has fallen under many investors' radars: Supermicro (SMCI). As George notes, the company beat its most recent earnings but faces steepening competition against peers.

I initiated a position in Super Micro Computer (SMCI) in recent days, following its sharp decline from $122 to $33 over two years, as a rebound looks to be next. SMCI's projected sales and income growth remains robust this year, with only a moderate slowdown expected in 2027. Today's forward P/E of 12x and EV/EBITDA of 10.6x suggest SMCI is now attractively valued, approaching pre-AI mania multiples.

Super Micro is rated 'Buy' due to strong AI server demand, unique solutions, and undervaluation despite margin compression. SMCI's modular design and DLC scale enable it to launch NVIDIA Blackwell systems four weeks ahead of the competition. Trading at a 42.9% EV/Sales discount to peers, SMCI offers a conservative target of $37 and a bullish recovery potential to $62.

The AI trade has moved from just chips to other parts of the data center. These three stocks all look likely to be a big part of that move.

Delivers Unmatched Scalability, Flexibility, Energy Efficiency Optimized for specialized compute including e-commerce and cybersecurity Up to 40 server nodes in a 6U enclosure SAN JOSE, Calif., Feb. 26, 2026 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, is announcing the launch of the industry's first and highest-density blade server platform powered by the latest AMD EPYC™ 4005 series processors.

Platform brings high-performance compute, scalable data infrastructure, and intelligent software together as one ready-to-run solution. Fully integrated AI infrastructure stack includes Supermicro compute and storage servers, VAST AI OS, and NVIDIA accelerated computing models and software.

Super Micro Computer is doubling down on DCBBS, targeting AI-driven growth and a bigger profit share by 2026 as it ramps up racks and new platforms.

Joint test proves GPU-based workloads can be real-time grid resources as power demand for AI surges tenfold BALTIMORE and DALLAS and SAN JOSE, Calif., Feb. 25, 2026 /PRNewswire/ -- CPower Energy ("CPower"), a leading Virtual Power Plant (VPP) platform, and Bentaus, a leading developer of AI-driven energy orchestration platforms, in collaboration with Supermicro (NASDAQ: SMCI), a global leader in Application-Optimized Total IT Solutions, today announced the successful completion of a joint demonstration of how AI compute infrastructure can provide fast, reliable flexibility to the electric grid.

The market for some of the larger tech stocks in the US looks a bit lackluster in early Tuesday premarket trading. However, we are at a support level in several markets at the same time.

Super Micro Computer, Inc. reinstates its $40 billion FY 2026 revenue guidance after strong fiscal Q2 results, but margin compression risks persist. While SMCI aims to improve margins by complementing its more profitable DCBBS ramp with a pivot towards enterprise opportunities where it has stronger pricing leverage, elevated execution risks remain. The enterprise-led margin recovery strategy has become increasingly prone to intensifying server CPU supply constraints, most acutely felt at Intel.