Latest news with #SuperMicro
Yahoo
6 days ago
- Business
- Yahoo
Supermicro Launches New AI Servers With Intel Xeon 6 Chips
Super Micro Computer (NASDAQ:SMCI) announced on Wednesday that it has begun shipping advanced 4-socket servers to support large-scale database and enterprise applications. These new systems, built with the latest Intel (NASDAQ:INTC) Xeon 6 Processors with Performance-Cores (P-Cores), are CXL 2.0 ready and optimized for mission-critical workloads, in-memory databases, and scientific simulations that demand massive memory capacity and low-latency CPU performance. As part of Supermicro's Data Center Building Block Solutions (DCBBS), these servers deliver significantly higher performance than earlier 4-socket can now access up to 16TB of memory and support for 6 double-width GPUs in a single system, ideal for applications like ERP, AI inferencing and training, analytics, and virtualization, without the complexity of scaling across multiple nodes. Supermicro also secured SAP (NYSE:SAP) HANA and Oracle (NYSE:ORCL) Linux certifications for these servers. Their extensive memory capacity allows enterprises to scale SAP and Oracle workloads vertically, within a single node, eliminating the latency issues tied to distributed processing. The 2U models support 2 GPUs, while the 4U versions handle up to 6 GPUs, enabling advanced AI capabilities integrated with enterprise databases. Supermicro's 4-socket servers simplify high-performance data center architecture and future-proof SAP, Oracle, and AI-powered enterprise deployments by combining compute, memory, and storage into a single instance. Supermicro stock gained 75% year-to-date, topping the Nasdaq Composite index's over 7%, backed by robust demand for its AI servers. Supermicro and semiconductor peers rallied this week on news of Trump's upcoming $70 billion AI and energy plan in Pennsylvania and the U.S. easing chip export rules to China. The initiative targets AI data centers, grid upgrades, and workforce training, while Blackstone's Jon Gray is expected to announce a separate $25 billion data center push. Price Action: SMCI shares were trading lower by 0.47% to $52.97 premarket at last check on Thursday. Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report This article Supermicro Launches New AI Servers With Intel Xeon 6 Chips originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Bank of America drops shocking call on Super Micro stock
Bank of America drops shocking call on Super Micro stock originally appeared on TheStreet. Few stocks have captured the AI server boom like Super Micro Computer () . Skyrocketing this year, Super Micro's become a go-to for investors betting on liquid-cooled racks and next-gen AI data centers. 💵💰💰💵 Its fundamentals are excellent, as the orders keep piling up, with the stock crushing broader markets. However, a surprise twist could test just how bulletproof that rally really is. A fresh take on Super Micro's future just dropped, and it could leave its most die-hard fans bracing for a shock they didn't see coming. Super Micro flipped the script, sprinting to the front of the AI server race and catching its rivals off guard. A glimpse of that can be seen from its incredible top-line expansion, with AMD currently posting over 82% year-over-year growth in sales. AMD's secrets have been complete AI 'factories' layered with Nvidia's Blackwell GPUs and AMD's EPYC chips. Earlier, it used to sell just custom chassis, but now it bundles everything from switching boards and dense GPU racks to advanced essentially everything big cloud providers and enterprise customers need to train huge AI models. Arguably, the star of the show this year has been the 4U RTX PRO server. It packs eight Nvidia Blackwell RTX 6000 cards and next-gen PCIe Gen 6 networking to move 800 Gbps of data through a single chassis. Early performance tests have shown it efficiently matches larger, pricier setups. Those margins are likely to be critical going forward. Gross margins dropped from 18% in 2023 to under 10% expected later this decade. Still, Super Micro keeps underpricing bigger rivals without sacrificing performance. Corporate governance hasn't been smooth sailing, either. Delayed audits and a Justice Department probe forced the business to tighten controls and bring in a new auditor. On top of that, its supply chain moves have also been mighty ambitious. More Tech Stock News: Tesla's next bet could flip the robotaxi race Cathie Wood shells out $13.9 million for one high-stakes biotech stock Apple's quiet shake-up could redefine its future Nevertheless, a $20 billion deal with DataVolt should boost hyperscale capacity, and a new plant in the Netherlands could help dodge chip shortages and tariffs. There are a ton of challenges for it to contend with, though. Dell and HPE are pushing their own AI server stacks, pressurizing Super Micro to cut prices even more. Any delays in scaling its European plant or new export curbs on GPUs could crimp growth fast. Hence, despite the transformation from a boutique parts maker to a serious AI hardware architect, Super Micro needs to continue executing impeccably to stay ahead. Super Micro Computer has emerged as a big winner on the stock market this year, gaining over 60%, but Bank of America's recent note could put a dent in that rally. Analyst Ruplu Bhattacharya restarted coverage with an Underperform rating, slapping on a fresh $35 price target. That implies a worrying 30% drop in stock price from where it trades currently. Bhattacharya feels Super Micro's profit machine could run into a wall. Competition is heating up quickly, as tech darlings like Dell and HP Enterprise muscle into the AI server space. These giants have the scale and deep ties with big-ticket customers that could force Super Micro to cut prices while staying now, Super Micro's gross margin currently stands at 11.3% for FY25, but BofA expects that to drop to 9.4% by FY27. That's a deep slide for a hardware company trying to keep investors excited. To make matters worse, Bhattacharya warns of shortages of critical components, including high-end GPUs and liquid cooling parts. In addition, despite the company being first to the market with advanced liquid cooling tech, that lead may not last long. Rivals are racing to adopt the same tech, which could wipe out a key competitive edge. Top that off with Super Micro's ongoing legal concerns and weak internal controls, and Bhattacharya thinks the risks now outweigh the upside. Although he does see sales remaining strong, lower profits could overshadow top-line of America drops shocking call on Super Micro stock first appeared on TheStreet on Jul 12, 2025 This story was originally reported by TheStreet on Jul 12, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
12-07-2025
- Business
- Miami Herald
Bank of America drops shocking call on Super Micro stock
Few stocks have captured the AI server boom like Super Micro Computer (SMCI) . Skyrocketing this year, Super Micro's become a go-to for investors betting on liquid-cooled racks and next-gen AI data centers. Don't miss the move: Subscribe to TheStreet's free daily newsletter Its fundamentals are excellent, as the orders keep piling up, with the stock crushing broader markets. However, a surprise twist could test just how bulletproof that rally really is. A fresh take on Super Micro's future just dropped, and it could leave its most die-hard fans bracing for a shock they didn't see coming. Image source: Bloomberg/Getty Images Super Micro flipped the script, sprinting to the front of the AI server race and catching its rivals off guard. A glimpse of that can be seen from its incredible top-line expansion, with AMD currently posting over 82% year-over-year growth in sales. AMD's secrets have been complete AI "factories" layered with Nvidia's Blackwell GPUs and AMD's EPYC chips. Earlier, it used to sell just custom chassis, but now it bundles everything from switching boards and dense GPU racks to advanced cooling. Related: JPMorgan delivers blunt warning on S&P 500 That's essentially everything big cloud providers and enterprise customers need to train huge AI models. Arguably, the star of the show this year has been the 4U RTX PRO server. It packs eight Nvidia Blackwell RTX 6000 cards and next-gen PCIe Gen 6 networking to move 800 Gbps of data through a single chassis. Early performance tests have shown it efficiently matches larger, pricier setups. Those margins are likely to be critical going forward. Gross margins dropped from 18% in 2023 to under 10% expected later this decade. Still, Super Micro keeps underpricing bigger rivals without sacrificing performance. Corporate governance hasn't been smooth sailing, either. Delayed audits and a Justice Department probe forced the business to tighten controls and bring in a new auditor. On top of that, its supply chain moves have also been mighty ambitious. More Tech Stock News: Tesla's next bet could flip the robotaxi raceCathie Wood shells out $13.9 million for one high-stakes biotech stockApple's quiet shake-up could redefine its future Nevertheless, a $20 billion deal with DataVolt should boost hyperscale capacity, and a new plant in the Netherlands could help dodge chip shortages and tariffs. There are a ton of challenges for it to contend with, though. Dell and HPE are pushing their own AI server stacks, pressurizing Super Micro to cut prices even more. Any delays in scaling its European plant or new export curbs on GPUs could crimp growth fast. Hence, despite the transformation from a boutique parts maker to a serious AI hardware architect, Super Micro needs to continue executing impeccably to stay ahead. Super Micro Computer has emerged as a big winner on the stock market this year, gaining over 60%, but Bank of America's recent note could put a dent in that rally. Analyst Ruplu Bhattacharya restarted coverage with an Underperform rating, slapping on a fresh $35 price target. That implies a worrying 30% drop in stock price from where it trades currently. Bhattacharya feels Super Micro's profit machine could run into a wall. Competition is heating up quickly, as tech darlings like Dell and HP Enterprise muscle into the AI server space. These giants have the scale and deep ties with big-ticket customers that could force Super Micro to cut prices while staying competitive. Related: Veteran analyst drops jaw-dropping price target on AppLovin stock Right now, Super Micro's gross margin currently stands at 11.3% for FY25, but BofA expects that to drop to 9.4% by FY27. That's a deep slide for a hardware company trying to keep investors excited. To make matters worse, Bhattacharya warns of shortages of critical components, including high-end GPUs and liquid cooling parts. In addition, despite the company being first to the market with advanced liquid cooling tech, that lead may not last long. Rivals are racing to adopt the same tech, which could wipe out a key competitive edge. Top that off with Super Micro's ongoing legal concerns and weak internal controls, and Bhattacharya thinks the risks now outweigh the upside. Although he does see sales remaining strong, lower profits could overshadow top-line growth. Related: Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
12-07-2025
- Business
- Business Insider
Super Micro Stock (SMCI) Gets Price Target Hike from Citi's Top Analyst Ahead of Q4 Earnings
Super Micro Computer (SMCI), a provider of servers and IT systems, is set to announce its Q4 FY25 earnings in early August. Wall Street expects the company to report EPS of $0.44 on revenue of $5.96 billion in Q4. Ahead of the results, Asiya Merchant, a 5-star analyst at Citi, raised her price target on the stock to $52, up from $37. While she maintained a Neutral rating, Merchant believes stronger demand for AI servers and easing supply constraints could support growth in the coming quarters. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Merchant ranks 280 out of more than 9,800 analysts on TipRanks. She has a success rate of 75%, with an average return per rating of 26.80% over a one-year period. Analyst Sees AI Growth Ahead, But Margin Concerns Linger Merchant, a Top-rated analyst, sees growing demand in the AI space, especially from large companies and government customers. She noted that Super Micro is beginning to benefit from the ramp-up of Nvidia's (NVDA) GB200 and GB300 platforms, which started shipping in May. She added that Super Micro's management sounds hopeful about turning current deals into real orders over the next two quarters. As Blackwell GPU supply improves, she believes the company will find it easier to deliver products and grow its sales. Still, the analyst remains cautious. She warned that profit growth could slow, as larger rivals like Dell (DELL) and Hewlett Packard Enterprise (HPE) are stepping up competition in the same space. This added pressure could make it harder for Super Micro to grow its margins, even if sales continue to rise. Higher Price Target Reflects AI Buzz Merchant raised her price target to $52 based on a higher earnings multiple of 13.5x FY2027 estimates, compared to her earlier range of 9–10x. She said the move reflects stronger valuations across AI-related stocks and an overall lift in the market. However, the analyst kept her Neutral rating, citing fair valuation and margin pressure ahead of Q4 earnings. Is SMCI Stock a Buy? Super Micro Computer stock has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on six Buy, six Hold, and two Sell recommendations issued in the last three months. The average SMCI price target of $40.92 implies 18.75% downside from current levels.
Yahoo
10-07-2025
- Business
- Yahoo
Europe's AI Server Demand Forces Expansion
Super Micro Computer (NASDAQ:SMCI) CEOCharles Liang told CNBC that Europe's appetite for AI servers is exploding. The plant in 's-Hertogenbosch simply cannot keep pace with incoming orders right now. That is why Super Micro is lining up additional sites across Europe, on top of the new factories in Malaysia and Taiwan that will be ready before year-end. Being closer to customers means faster delivery and fewer logistics headaches. Warning! GuruFocus has detected 5 Warning Signs with SMCI. Revenue in the first quarter climbed, yet it fell short of expectations because some clients paused purchases until Nvidia's (NASDAQ:NVDA) Blackwell GPUs arrive. Liang says that temporary slowdown won't last once the next-gen chips hit the market. With manufacturing capacity growing around the globe, Super Micro looks poised to serve the booming AI market. Investors may want to watch capital spending trends and how quickly these new facilities begin shipping servers. This article first appeared on GuruFocus. Sign in to access your portfolio
