DailyIQ
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Sector:TechnologyAll sectors
Last updated 5 minutes ago

SMCI·Super Micro Computer, Inc.

$.
+. (+.%)
After Hours
High
$29.00
Open
$28.30
Market Cap
18.48B
52W High
$62.36
Low
$27.91
P. Close
$28.33
P/E
14.82
52W Low
$19.48
Fwd P/E
8.93
DailyIQ Est.
$36.85
Technical Score (1D)
50
NEUTRAL
News Sentiment
69
BULLISH
The latest catalyst is the anticipated turnaround from oversold levels as Super Micro’s expansion of manufacturing sites in Taiwan and the Middle East, coupled with its Data Center Building Block Solutions, is expected to lift top‑line growth and improve cost efficiency. The company’s partnership with IBM’s Red Hat to launch Kubernetes Edge AI appliances positions SMCI to capture demand from cloud‑native enterprises, potentially boosting margins if adoption accelerates. However, the shift toward AI‑driven server solutions is tempered by significant cash burn and legal cloud expenses, creating a sharp trade‑off that could pressure liquidity over the next trading week. Following a global chip sell‑off, SMCI’s share price rebounded toward key technical levels, with analysts eyeing the $33.50 resistance point as a potential breakout target, indicating short‑term upside if the rally sustains. The recent 7.3% uptick in shares, despite a 16% drop in volume, reflects mixed analyst sentiment, with upgrades from some firms and target cuts from others, underscoring the market’s ambivalence about the company’s valuation. Investor concern over the 36% June decline, driven by dilution to fund a large order book, highlights the risk of earnings dilution, and traders should monitor any subsequent capital‑raising activity and earnings guidance. The launch of Kubernetes Edge AI appliances with Red Hat and Everpure, announced over 80 hours ago, has generated positive market reception and could broaden SMCI’s customer base beyond traditional server markets, potentially lifting revenue in the next quarter. Supply‑chain constraints could affect delivery timelines for the new edge AI line, so traders should keep an eye on any announcements regarding component availability or production bottlenecks. In the next 1–10 trading days, the key watch items will be the company’s ability to convert its expanded capacity into sales, the pace of AI appliance adoption, and any updates on cash burn or dilution that could impact liquidity.
Earnings Summary
Super Micro Computer, Inc. designs and delivers high‑performance server and storage solutions, leveraging a modular and open‑standard architecture for global markets; the company serves enterprise data centers and OEMs with blade, rack‑mount, and multi‑node systems, complemented by remote management services. In the technology sector, its focus on AI, cloud, and edge computing positions it within the high‑growth computer hardware industry. In the most recent two quarters with earnings data, Q2 2026 EPS rose to $0.69 from $0.84 in Q3 2026, while revenue climbed to $12.68 B from $10.24 B, indicating an acceleration in top‑line growth after a prior period of mixed performance; compared to the prior two quarters with EPS data, Q3 2025 EPS of $0.35 and Q1 2025 EPS of $0.31 were lower, and revenue had grown from $5.02 B in Q3 2025 to $10.34 B in Q4 2025, showing a sharp rebound. The company has beaten estimates in four of the six quarters with EPS data (Q4 2024, Q1 2025, Q2 2026, Q3 2026) but missed in Q2 2025 and Q3 2025, reflecting a pattern of strong revenue growth coupled with occasional EPS shortfalls. Historically, year‑over‑year revenue has trended upward, moving from $5.68 B in Q4 2024 to $5.76 B in Q2 2025, then to $10.34 B in Q4 2025 and $12.68 B in Q2 2026, while EPS has fluctuated, with a notable dip in Q1 2025 followed by a rebound in Q2 2026; this suggests that while top‑line momentum is strong, profitability remains sensitive to cost and dilution factors. Recent news highlights the company’s expansion of manufacturing sites in Taiwan and the Middle East and its partnership with IBM’s Red Hat to launch Kubernetes‑edge AI appliances, signaling a strategic shift toward higher‑margin AI‑enabled infrastructure that could drive future revenue if capacity utilization and early sales materialize; however, concerns about cash burn, dilution from financing, and an export‑control probe add risk to the outlook. Investors should watch for capacity utilization at the new sites, early adoption metrics for the edge AI appliances, cash burn trends, and any resolution of the export‑control investigation, as these factors will shape the company’s ability to sustain revenue growth and improve margins in the next earnings cycle.

EPS

EstBeatMiss
$0.22$0.39$0.57$0.75$0.92Q1'25Q2'25Q3'25Q2'26Q3'26Q4'25
QtrEstActual+/−
Q4'25$0.49 - -
Q3'26$0.62$0.84+34.5%
Q2'26$0.62$0.69+10.8%
Q3'25$0.39$0.35-10.1%
Q2'25$0.44$0.41-6.6%
Q1'25$0.30$0.31+3.8%

Revenue

EstBeatMiss
$3.4B$6.0B$8.6B$11.3B$13.9BQ1'25Q2'25Q3'25Q2'26Q3'26Q4'25
QtrEstActual+/−
Q4'25$10.3B - -
Q3'26$12.5B$10.2B-17.8%
Q2'26$12.5B$12.7B+1.8%
Q3'25 - $5.0B -
Q2'25 - $5.8B -
Q1'25 - $4.6B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

SMCI Stock Snapshot

SMCI is currently trading at $28.43, giving Super Micro Computer, Inc. a market cap of 18.48B and a P/E ratio of 14.8. Today's range spans $27.91–$29.00, with shares opening at $28.30 and moving up $0.10 (0.4%) from the prior close. DailyIQ's technical score sits at 50/100 (HOLD) with a news sentiment reading of 69/100.

Over the past year SMCI has traded between $19.48 and $62.36 - the current price is +45.9% off the 52-week low and -54.4% from the high. 28 analysts cover the stock with a Hold consensus and a mean 12-month target of $37.25 (range $15.00–$58.00), implying upside of +31.0%.

Sector rotation context matters for SMCI's HOLD phase (50/100, HOLD): in Technology, large-cap names (18.48B market cap) with neutral technicals and bullish sentiment (69/100) are often in a staging area ahead of a rotation trade. The current P/E ratio stands at 14.8. Price: $28.43 (in the lower half of its 52-week range in $19.48–$62.36). When sector flows resume, names that consolidated cleanly rather than correcting sharply tend to lead the next leg - and SMCI's current setup fits that pattern.

Portfolio construction in Technology often uses large-cap names like SMCI as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 50/100 (HOLD) at $28.43 (in the lower half of its 52-week range) and bullish sentiment (69/100) frame the position as a catalyst play within the $19.48–$62.36 annual range rather than a directional bet.