Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether ...

After Super Micro Computer (NASDAQ: SMCI) reported its fiscal 2026 second-quarter results after the bell on Feb. 3, its stock price climbed immediately, as the report featured strong revenue growth and management upped its revenue guidance for the fiscal year. However, later in the week, the stock gave back much of its gains. Then it recovered again, and it remains volatile. For those unfamiliar with Supermicro, the company designs and assembles servers and rack solutions for data centers, providing ever ...

Shares of Super Micro Computer Inc (NASDAQ:SMCI) are trading slightly lower Monday morning, giving back a portion of last week's post-earnings rally as investors digested analyst rating updates and ongoing volatility in the high-flying AI server name. Here’s what investors need to know.Super Micro Computer stock is taking a hit today. What’s pressuring SMCI stock?Earnings Beat Highlights Strong AI-Driven DemandThe move comes after Super Micro reported fiscal second-quarter results last week that topped Wall ...

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI Stocks to Keep on Your Radar. On February 4, Barclays analyst Tim Long lowered the price target on Super Micro Computer (NASDAQ: SMCI) to $38.00 (from $43.00) while maintaining an “Equal Weight” rating. Discussing SMCI’s earnings report, Barclays noted how December quarter results exceeded expectations on both revenue and earnings. SMCI posted revenue of $12.7 billion, which represents a 153% quarter-over-quarter increase and also exceeds Barcla ...

We recently published 10 Easy Double-Digit Gainers. Super Micro Computer Inc. (NASDAQ:SMCI) was one of the best performers last week. Super Micro grew its share prices by 18.10 percent week-on-week, with investor sentiment primarily bolstered by its target to grow its sales further by more than double, encouraged by its stellar second-quarter results. In an earnings call during the week, Super Micro Computer Inc. (NASDAQ:SMCI) said that its net income in the second quarter of fiscal year 2026 jumped by ...

Financial Performance - Net sales for the three months ended December 31, 2025, reached $12.68 billion, a 123.4% increase compared to $5.68 billion in the same period of 2024[199][200]. - Gross profit for the same period was $798.57 million, with a gross margin decrease to 6.3% from 11.8% year-over-year, attributed to competitive pricing strategies[199][200]. - Net income increased to $400.6 million for the three months ended December 31, 2025, compared to $320.6 million in 2024, primarily driven by higher net sales[193][200]. - Operating expenses rose by 7.6% to $324.27 million, mainly due to increased headcount and higher salary and stock-based compensation costs[199][200]. - Net sales for the three months ended December 31, 2025, increased by $7,004.5 million or 123.4% year-over-year, reaching $12,682.5 million, driven by datacenter deployments and a large design win[216][217]. - AI GPU related products saw a significant increase in billings of $7,398.2 million or 169.7% year-over-year, contributing to the overall sales growth[217]. - Net income for the three months ended December 31, 2025, was $400.6 million, compared to $320.6 million in the same period of 2024, representing a 25.0% increase[216]. - The company experienced a decrease in sales across other product categories by $475.9 million or 42.5% as it focused on AI GPU platforms[217]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, totaled $324.3 million, a 7.6% increase from the previous year, with research and development expenses rising by 14.3%[224][226]. - Total operating expenses for the six months ended December 31, 2025, were $609.4 million, up 7.3% from $567.8 million in 2024[224]. - The gross margin for the six months ended December 31, 2025, decreased to 7.2% from 12.4% in the prior year, attributed to changes in product mix and increased costs[223]. - General and administrative expenses increased by $6.8 million or 10.7%, primarily due to a $6.4 million or 567.4% rise in excise and franchise tax expense related to increased sales[228]. - Research and development expenses rose by $63.6 million or 21.9%, driven by a $60.1 million or 22.1% increase in employee-related costs, including a $36.2 million or 21.8% increase in salaries[229]. - Sales and marketing expenses decreased by $27.4 million or 18.5%, mainly due to a $28.8 million or 268.3% increase in marketing development funds received from partners[230]. Cash Flow and Investments - Cash and cash equivalents decreased to $4.1 billion as of December 31, 2025, down from $5.2 billion as of June 30, 2025[245]. - Net cash used in operating activities was $(941.4) million for the six months ended December 31, 2025, a decrease of $1,110.5 million compared to the prior year[249]. - Net cash used in investing activities for the six months ended December 31, 2025, was $53.5 million for property, plant, and equipment purchases, and $25.0 million for equity securities[251]. - Net cash provided by financing activities during the same period was $115.4 million, primarily from lines of credit and term loans, offset by $71.1 million for withholding taxes related to equity awards[252]. - The increase in cash used in investing activities compared to the previous year was primarily due to higher property, plant, and equipment purchases[251]. Future Outlook and Strategy - The company plans to enhance its product capabilities and expand service offerings, particularly in the AI and data center markets, to capture greater market share[197]. - The company emphasizes the importance of rapidly introducing new products and integrating emerging technologies to maintain competitive advantage[195]. - The company recognizes the need to strengthen its network of sales partners and distribution channels to further expand market share[194]. - Future capital requirements will depend on growth rate, timing of investments for product development, and expansion of sales and marketing efforts[256]. - The company will continue to evaluate new business opportunities and markets, which may necessitate additional facilities and capital expenditures[255]. - Anticipated capital expenditures for the remainder of fiscal year 2026 are projected to be between $200.0 million and $220.0 million, focusing on global manufacturing capabilities and new product tooling[255]. Economic and Market Conditions - Macroeconomic factors such as inflation and supply chain constraints have impacted the company's operations and may continue to do so[198]. - The company has limited exposure to foreign exchange rate fluctuations as most sales and purchases are in U.S. dollars, with minimal historical impact from currency re-measurement[263]. - A 10% change in interest rates is not expected to significantly impact the results of operations based on current investment and borrowing levels[262]. - Interest rates for term loans and revolving lines of credit ranged from 1.3% to 5.9% as of December 31, 2025, with an outstanding principal indebtedness of $223.2 million[262]. Tax and Interest Expenses - Income tax provision increased by $42.1 million or 73.9%, driven by an increase in worldwide income before income tax provision[241]. - Interest income increased by $42.2 million or 479.5%, attributed to higher interest income from increased cash deposits funded by convertible notes issuance[235]. - Interest expense increased by $18.8 million or 289.2%, primarily due to a $22.7 million or 2012.3% rise in interest related to the amendment and issuance of convertible notes[236]. - The company reported a significant increase in tariff expenses by $184.2 million or 1151.3% due to new trade policies impacting cost of sales[222].

Shares of Super Micro Computer (SMCI), or Supermicro, tumbled 8.6% on Feb. 5, erasing most of its post-earnings gains amid a broader market stumble. A day earlier (Feb. 4), Super Micro stock surged 13% after the server maker reported better-than-expected earnings and revenue for the fiscal second quarter ended Dec. 31, 2025. Super Micro is a California-based server maker that also provides server management software and storage systems for enterprise data centers, cloud computing, and artificial intelli ...

Super Micro Computer ( NASDAQ:SMCI ) reported robust artificial intelligence (AI) growth in its fiscal second-quarter results on Tuesday after the markets closed, with revenue surging 123% year-over-year to $12.7 billion, exceeding estimates around $10.4 billion. ...

Key Takeaways Supermicro Q2 FY26 net sales jumped 123% to $12.7B as DCBBS gained traction with AI customers.SMCI trades at a forward P/E of 15.83, below its industry, as management guides FY26 sales of at least $40B.Supermicro faces risks as gross margin slid to 6.3% and debt-to-equity rose to 66.9%.NVIDIA Corporation (NVDA) dominates the artificial intelligence (AI) market but carries a high valuation. By contrast, the smaller AI company Super Micro Computer, Inc. (SMCI) delivered strong quarterly results ...

Super Micro Computer (SMCI) has had a volatile year, but there may be signs of a turnaround in the near future. That's at least what analyst notes seem to suggest following Super Micro Computer's solid fiscal Q2 earnings results, which showed positive growth prospects. While the stock is down nearly 47% in the past six months, it is up 4% since the beginning of 2026. More News from Barchart About Super Micro Computer Super Micro Computer builds high-performance servers, storage, and networking gear op ...