Super Micro Computer's HPC Solutions Propel Server Growth: What's Next?

Super Micro Computer’s SMCI server and storage segment has experienced massive traction in recent times. The recent growth has primarily been fueled by demand in high performance computing (HPC) and AI workloads where SMCI delivers multiple solutions. This shot the revenues of the server and storage segment by 19% year over year in the third quarter of fiscal 2025.SMCI develops solutions like direct liquid cooling technology for optimizing thermal performance and allowing reduced power consumption in data centers supporting HPC and AI workloads. The company recently introduced data center building block solutions (DCBBS), a modular product for building data centers faster.The company also started shipping Supermicro 4-Socket X14 Servers as part of DCBBS to consolidate high-performance compute, memory, and AI capabilities in a single chassis. These servers come with built-in Intel Xeon 6 P-Core processors that offer up to 50% performance uplift. Furthermore, the solution is certified for SAP HANA and Oracle Linux.SMCI is playing a critical role in transitioning global enterprises toward more powerful data center operations supporting HPC and AI. The Zacks Consensus Estimate for Super Micro Computer’s 2025 and 2026 revenues is pegged at $22.12 billion and $30.2 billion, indicating year-over-year growth of 48.16% and 33.54%, respectively.How Competitors Fare Against SMCIThe HPC market contains large players, including Dell Technologies DELL, Atos, Hewlett Packard Enterprise HPE, IBM, and Microsoft, that challenge SMCI’s growth. DELL is a strong HPC player with its PowerEdge Supercomputing & AI Servers like XE9680, XE9640 and XE8640.Hewlett Packard Enterprise has built supercomputing systems like El-Capitan, Frontier and Aurora, all powered by HPE Cray technology, HPE ProLiant Compute XD Series, and has forged partnerships with leading players like NVIDIA and prestigious universities. In the storage space, Hewlett Packard Enterprise offers Cray ClusterStor-E2000 and Slingshot Interconnect 400.SMCI’s Price Performance, Valuation and EstimatesShares of SMCI have gained 68.9% year to date compared with the Zacks Computer- Storage Devices industry’s growth of 13.1%.SMCI YTD Performance ChartImage Source: Zacks Investment ResearchFrom a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 1.02X, down from the industry’s average of 1.49X.SMCI Forward 12-Month (P/S) Valuation ChartImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for SMCI’s fiscal 2025 earnings implies a year-over-year decline of 6.33%, while the same for fiscal 2026 indicates growth of 26.33%. The estimates for fiscal 2025 and 2026 have been revised downward in the past 60 days.Image Source: Zacks Investment ResearchSMCI currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks hereZacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks