Supermicro (SMCI)

Information Technology · $18.1B market cap · SEC CIK 0001375365

Next reports on Feb 1, 2027, with analysts expecting $1.61 in earnings per share.

52-week range $19.48 to $51.40. 46% below its 52-week high and 43% above its low.

The case for SMCI

• Cheap for its growth: 5.0× earnings, where 25%+ a year of growth would justify about 46×.
• Earns 32% back on shareholder equity.
• Earnings per share up 298.5%.
• Revenue up 156% on the year. A jump that size is often a deal or an accounting change, so check the filing.
• Has compounded revenue at 61.5% a year over five years.
• Current assets cover the near-term bills 3.0 times over.

The case against

• Burned $7.0B of free cash in FY2026.
• Down 28.1% over the past year.
• Swings harder than the market (beta 2.28).
• Free-cash-flow yield of −38.5% is lower than 100% of Information Technology companies.
• Net margin of 7% is thinner than 85% of Information Technology companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from Supermicro's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Supermicro says it does

Our Company We are a Silicon Valley-based provider of total information technology ("IT") solutions which address demanding workloads from the enterprise and cloud to the intelligent edge. We deliver rack-scale solutions optimized for various workloads, including artificial intelligence (“AI”) and high-performance computing (“HPC”), where acceleration is critical. Additionally, we offer an extensive portfolio of server and storage solutions for enterprise data centers, cloud service providers ("CSPs"), and edge computing applications, such as 5G Telco, Retail and embedded. During fiscal year 2026, we advanced our transformation into a total data center infrastructure provider through our Data Center Building Block Solutions ® (“DCBBS”), an integrated offering that delivers complete, modular AI infrastructure from validated components and sub-systems, ranging from individual graphics processing units (“GPUs”) and networking switches to…

Risk factors SMCI lists in its 10-K

• Our operating results have in the past fluctuated and will likely fluctuate in the future, and if our operating results are below the expectations of securities analysts or investors, our stock price could decline
• If we fail to meet any publicly announced financial guidance or other expectations about our business, it could cause our stock to decline in value
• Failure to meet the evolving needs of our industry and markets may adversely impact our financial results
• We face risks related to recessions, inflation, stagflation, and other macroeconomic conditions
• Any failure, disruption or security breach or incident of or impacting our IT infrastructure or information management systems could have an adverse impact on our business and operations
• We may be unable to attract, retain, and motivate our executives and key employees
• Conflicts of interest may arise with Ablecom and Compuware, and they may adversely affect our operations
• Our reliance on Ablecom and Compuware could be subject to risks associated with our reliance on a limited source of contract manufacturing services and inventory warehousing
• If we lose Charles Liang, our President, Chief Executive Officer and Chairman, or any other key employee or are unable to attract additional key employees, we may not be able to implement our business strategy in a timely manner
• We rely on a limited number of suppliers for certain components used to manufacture our products
• Changing technology and intense competition require us to continuously innovate while controlling product costs, and our failure to do so may result in decreased revenues and profitability
• The AI industry has driven a significant portion of our recent success. The AI industry involves significant risks and uncertainties, and the use of AI by our workforce may present risks to our business
• Our growth into markets outside the United States exposes us to risks inherent in international business operations
• Climate change may have a long-term impact on our business
• We are subject to complex laws, rules, regulations, and political and other actions, including restrictions on the export of our products, which may adversely impact our business
• Adequately protecting our intellectual property rights could be costly, and our ability to compete could be harmed if we are unsuccessful or if we are prohibited from making or selling our products
• Failure to comply with the U.S. Foreign Corrupt Practices Act, other applicable anti-corruption and anti-bribery laws, and applicable trade control laws could subject us to penalties and other adverse consequences
• Provisions of our certificate of incorporation and bylaws and Delaware law and provisions in our governing documents could delay or prevent a change of control of our company
• The concentration of our capital stock ownership may limit your ability to influence corporate matters
• The capped call transactions entered into in connection with the issuance of the 2029 Convertible Notes and the 2030 Convertible Notes subject us to counterparty risk and may affect our common stock
• Our operating results may be adversely impacted by additional tax liabilities, higher than expected tax rates, changes in tax laws, and other tax-related factors
• We do not expect to pay any cash dividends in the foreseeable future, except for the 7.00% dividend on our Mandatory Convertible Preferred Stock

Filings

Other Information Technology companies