Latest news with #server
Yahoo
5 days ago
- Business
- Yahoo
Intel Could Still Be a Big Winner in the AI Server Boom
Server sales are booming, largely thanks to artificial intelligence (AI) server demand. Intel isn't a major player in the AI accelerator market, but its server CPU business can benefit from strong server demand. The company will need to battle competition from AMD and Arm-based servers, but its product lineup is the best it's been in years. 10 stocks we like better than Intel › Demand for artificial intelligence (AI) infrastructure is off the charts. Around the world, companies and countries are investing heavily in AI data centers, fearful of being left behind. While the jury is still out on how long this frantic pace of AI data center build-outs will last, there are no signs of it slowing down anytime soon. Intel (NASDAQ: INTC) has largely missed the AI boat. The company's attempts to break into the AI accelerator market fell flat, and its server CPU business has struggled recently as rival AMD stole market share. Manufacturing delays in the past and a culture of complacency planted the seeds of the current crisis. I wouldn't say that Intel has fully gotten its act together in the server CPU market, but the company has certainly made meaningful progress over the past few years. The server market is expected to grow rapidly over the next few years, and Intel is in a far better position today to reap the rewards. Global server sales topped $250 billion in 2024, according to IDC. With booming sales of AI servers in the first quarter, the forecast from IDC for 2025 now sits at $366 billion. By 2029, IDC sees global server sales nearing $600 billion. Much of this growth will be driven by x86 servers with AI accelerators, although other categories are also set to expand. Although the bulk of spending related to AI servers goes toward GPUs, CPUs are still a critical component. With global sales of accelerated x86 servers expected to nearly triple by 2029, AI servers represent a significant opportunity for Intel's server CPU business. The market for standard x86 servers will also expand, although not nearly as quickly. Intel fell way behind AMD in terms of performance, core count, and efficiency in the early 2020s. One problem was that Intel was stuck on its aging 14-nm process technology due to delays with its 10-nm process, and then it was stuck on its 10-nm process. Sapphire Rapids and Emerald Rapids, which both launched in 2023, both used versions of Intel's 10-nm process, while AMD was able to tap into more advanced process nodes from TSMC. Intel quickly made up some ground in 2024. Granite Rapids moved to the Intel 3 process, which is still behind TSMC, but not by nearly as much. Granite Rapids doubled the maximum core count from Emerald Rapids, and it brought significant improvements in performance and efficiency. Intel also launched Sierra Forest, which features large numbers of efficiency cores and is aimed at cloud workloads. Clearwater Forest, the successor to Sierra Forest, will move to Intel's new 18A process when it launches next year. Diamond Rapids, the successor to Granite Rapids, is also expected to utilize the Intel 18A process and launch sometime in 2026. At that point, the manufacturing gap with AMD should largely be closed. While Intel is well positioned to benefit from soaring server sales, servers built around Arm-based chips pose an additional threat. IDC expects Arm-based servers with AI accelerators to grow from a $32 billion market in 2024 to a $103 billion market by 2029. The x86 architecture is still expected to be dominant, but that dominance will certainly fade to a degree. Even with Arm expected to gain share, the server market will be big enough for Intel to grow its server CPU business. The company will need to fend off AMD and prevent any further market share losses, and its new process technologies will need to arrive on time. Intel may have missed out on the AI accelerator market, but with server sales set to boom through the rest of the decade, the company can still benefit from soaring AI demand. Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Intel Could Still Be a Big Winner in the AI Server Boom was originally published by The Motley Fool 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
Forbes
7 days ago
- Business
- Forbes
Super Micro Stock To $100?
CANADA - 2025/05/13: In this photo illustration, the Supermicro (Super Micro Computer) logo is seen ... More displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Super Micro Computer stock (NASDAQ: SMCI) has experienced a remarkable performance, increasing by nearly 10x over the last three years from approximately $5 per share in June 2022 to about $47 currently, fueled by a surge in demand for server systems driven by the generative artificial intelligence movement. While the stock faced a significant selloff in 2024 – enduring a drawdown of up to 80% at one stage – due to regulatory worries and allegations from short-seller Hindenburg Research regarding accounting discrepancies, there are indications that the markets are lifting the governance-related discounts on the stock. Super Micro stock is currently trading at about 22x estimated FY'25 earnings and 17x estimated FY'26 earnings (fiscal years end June). Is this a justifiable multiple? It likely is, particularly when you consider that the company's earnings could potentially increase by nearly 5x from FY'25 levels in the upcoming years. The stock is up 57% this year so far, and there's a chance that this robust growth could persist. Here's why. Revenue Growth Should Continue Super Micro Computer is a provider of data center solutions, selling server systems, server boards, storage, networking solutions, management software, and installation and maintenance services. SMCI is expected to grow its revenue by nearly 48% to $22 billion in FY'25 (ending June 2025), with projections indicating a further 35% increase in FY'26 to around $30 billion as expenditure on data center-related services continues strongly, with tech companies enhancing their AI and accelerated computing capabilities. There's potential for even more robust sales growth. Nvidia plans to increase production of its most recent Blackwell GPUs, which could consequently boost demand for SMCI's servers utilized for deploying the latest GPUs. Super Micro's server products have always been closely associated with Nvidia's GPU ecosystem and roadmap. The company has generally been quicker than competitors to provide server systems compatible with Nvidia's newest offerings, thanks to its modular system designs, advanced cooling and power infrastructure, and strong partnership with Nvidia for software and hardware integration. This positions SMCI to disproportionately benefit as Nvidia's Blackwell-based systems gain traction. The company serves as a key supplier of custom, high-density GPU servers for Nvidia's data center clients. Additionally, AI models are increasingly multimodal, progressing from mere text processing to integrating speech, images, video, and 3D, necessitating enhanced computing power and consequently greater demand for servers and computational capacity. Separately, if you seek better returns with less volatility than an individual stock, you might want to consider the High-Quality portfolio, which has outperformed the S&P, yielding over 91% returns since its inception. While the server market is saturated, Super Micro maintains certain competitive advantages, as its products are viewed as more customizable and energy efficient than those of its competitors. Customers of Super Micro are also expected to favor higher-end products. For instance, the company anticipates that expensive liquid-cooling systems for servers, which were fairly uncommon prior to the AI era, will be installed in 30% of the server racks it ships next year. The company is also continually enhancing its production capacity. If it manages to elevate its sales by an additional 35% in FY'27, this would elevate sales to around $54 billion for that year. This would result in a growth rate of about 2.5x over three years. Margins Could See Turnaround Combining this better-than-expected revenue growth with the fact that Super Micro's adjusted net margins (net income or profits after all expenses and taxes, expressed as a percentage of revenues) could witness a notable turnaround. Although net margins have been declining, falling to around 6.4% in the first nine months of 2025 from about 10% in the same period last year, prospects for improvement could arise from economies of scale and a more favorable product mix leaning towards premium offerings. The company has experienced some pressure on its gross margins in recent quarters due to a higher proportion of liquid-cooling systems being sold, which are costly to manufacture. Liquid cooling technology has also posed challenges in terms of large-scale implementation, as concerns about reliability, including issues like leaks and condensation, have complicated matters. However, Super Micro seems to have effectively tackled this technical hurdle, deploying these systems at a relatively large scale. Thus, the higher upfront costs and resulting margin pressures may ultimately serve as a worthwhile long-term trade-off, potentially granting the company a competitive edge in the AI hardware space. Additionally, the company's main fixed costs, such as research and development as well as selling and general expenses, are expected to rise at a slower rate than its revenues, which could further enhance margins. Given this, it might be reasonable to assume that Super Micro's adjusted net margins could double from FY'25 to FY'28, reaching approximately 12%. related: Why are SMCI margins so low? Valuation Multiple Could Contract At A Slower Pace If revenues increase by roughly 2.5x between FY'25 and FY'27, with margins expanding by about 2x during the same timeframe, this would indicate that earnings could rise by about 5x. If earnings indeed grow by 5x, the P/E multiple is expected to decrease to around a fifth of its current level, assuming the stock price remains unchanged. However, this is precisely what Super Micro investors are counting on not happening! Should earnings expand by 5x in the next few years, rather than the P/E falling from approximately 22x now to under 5x, we believe that the multiple could stabilize at approximately 10x. This could make an increase of over 2x in Super Micro stock a tangible prospect in the medium term – with the stock potentially reaching beyond $100 per share. What about the timeline for this high-return scenario? In reality, whether it takes 2 years or 3 won't make a significant difference – as long as Super Micro continues on this trajectory of revenue growth with margins on the rise, the stock price could respond accordingly. That being said, it's crucial to balance this potential upside with a recognition of past issues. Super Micro has been scrutinized regarding corporate governance – including allegations of accounting anomalies, delays in SEC filings, and pressure from short-sellers. While the company has implemented measures to resolve these concerns, investors should consider this history as they assess the sustainability of the current growth narrative. While investing in individual stocks carries risks, the Trefis Reinforced Value (RV) Portfolio has surpassed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices), delivering solid returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks has provided a responsive strategy to capitalize on favorable market conditions while minimizing losses during downturns, as elaborated in RV Portfolio performance metrics.
Yahoo
30-06-2025
- Business
- Yahoo
KeyBanc Begins Coverage of Super Micro Computer (SMCI) Stock
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Top 10 AI and Technology Stocks to Buy According to Analysts. On June 26, KeyBanc initiated coverage of the company's stock with a 'Sector Weight' rating. As per the firm's analyst, Super Micro Computer, Inc. (NASDAQ:SMCI) might have set the expectations too high for FY 2026, considering that the overall end market seems to be decelerating and getting more competitive. A team of technicians in a server room, testing and managing the newest server solutions. The firm highlighted concerns regarding the competitive nature of the server market, and tags it as one of the most competitive businesses in the broader IT Hardware space. It also expects that these competitive and structural factors can pressurize gross margins. Considering the lower growth, lower margins, and the company's lack of FCFs, KeyBanc took a more cautious view. Super Micro Computer, Inc. (NASDAQ:SMCI) announced that liquid-cooled and air-cooled GPU solutions would be available with new AMD Instinct MI350 series GPUs, optimized for unparalleled performance, maximum scalability, and efficiency. Notably, the Supermicro H14 generation of GPU optimized solutions featuring dual AMD EPYC™ 9005 CPUs along with the AMD Instinct MI350 series GPUs have been designed for companies that focus on maximum performance at scale, while, at the same time, reducing total cost of ownership for AI-driven data centers. Super Micro Computer, Inc. (NASDAQ:SMCI) is a total IT solution provider for AI, Cloud, Storage, and 5G/Edge. While we acknowledge the potential of SMCI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SMCI and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
27-06-2025
- Business
- Yahoo
TD Cowen and Morgan Stanley Cover Dell (Dell), Both Raise PT
Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI stocks that Jim Cramer and analysts are watching. On May 30, TD Cowen analyst Krish Sankar raised the price target on DELL stock to $125 from $120 and maintained a Hold rating. In the firm's view, more than $12 billion in AI server orders during the April quarter and expected AI-related shipments of approximately $7 billion in the July quarter were key positives in the first fiscal quarter. The firm noted that macroeconomic conditions may slightly affect traditional server and consumer demand. Tariffs and commodity prices were identified as inflationary pressures. On the same day, Morgan Stanley raised its price target on DELL to $135 from $126 and reaffirmed an Overweight rating. The analyst described fiscal Q1 results as mixed but noted that momentum may increase through the remainder of the year. The firm raised its fiscal year 2026 EPS estimate by 3 percent, reflecting stronger Q2 guidance and an improved second-half outlook driven by continued AI server momentum. A team of IT experts discussing the latest network security trends over a laptop screen. On June 9, Cramer mentioned the company as he commented: 'So traders say if I can't make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too. Take Dell. It reported an excellent quarter on May 29th… Stock initially failed to rally, but that's because it had run up into the quarter… Dell Technologies (NYSE:DELL) delivers integrated technology solutions that include storage systems, servers, networking products, laptops, and peripherals. The company also provides software, consulting, financing, and support services for businesses, institutions, and individual consumers across various industries. While we acknowledge the potential of DELL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Condé Nast Traveler
26-06-2025
- Condé Nast Traveler
Nonalcoholic Wine Is Finally Having Its Moment in NYC
Come March every year, nothing about New York City feels charming to me—even the slightest train delay (looking at you, Q) sets me off, and my favorite wool coat suddenly feels like a straitjacket. This year, I happily traded that melancholy for the sandy beaches of Palm Heights, an iconic hotel on Grand Cayman. But unlike my previous early spring escapes from the city, this trip happened just weeks after finding out I was pregnant. So at the hotel restaurant, when I asked our server if I could order just the non-alcoholic bubbly in a zero-proof cocktail, he seemed confused. 'We have many drinks without alcohol,' he said, gesturing to the menu in front of me, which had six thoughtfully crafted options using various fruit juices, extracts, ginger beer, and tonic. After a bit of back and forth, my booze-free bubbly arrived, and upon signing the check, I suggested that the staff consider adding the zero-proof sparkler to the menu by itself. It was crisp, dry, and paired perfectly with my plateful of shoestring fries and Caesar salad. Rather than detracting from the carefully crafted mocktail list (as my server perhaps feared it might), the addition of the non-alcoholic wine would simply have made the menu more inclusive. Mocktails are increasingly offered at restaurants in the US, at least at the ones worth their salt. But the options for someone who can't or doesn't drink, but just really craves a glass of wine—and isn't a big cocktail drinker to begin with—are surprisingly still limited. At Gramercy Tavern, non-alcoholic wines have become so popular that the staff are increasing their supply. Maura McEvoy/Gramercy Tavern Thankfully, that seems like it is changing. A few spots in New York City are offering more nonalcoholic wine options (often abbreviated as 'N/A wines') both by the glass and bottle. At the iconic Gramercy Tavern, by-the-glass booze-free wines have become so popular that beverage director Randall Restaino recently added them to his usual bi-weekly bar ordering sheet. 'We now restock these wines weekly,' Restaino tells Condé Nast Traveler. 'I remember eight years ago, at Chef's Table at Brooklyn Fare, we had one guest per service asking for this. Fast forward and now at Gramercy Tavern, the N/A options are among the top ten wines sold nightly.' I visited Gramercy Tavern recently on a quiet weekday, and I nosily clocked another bar patron, who seemed to be there for post-work drinks, asking for Dr. Steinbock Fischer's Riesling Zero from Martin Hofstatter, who makes Riesling and Pinot Noir in Italy's Alto Adige region. 'He crafts real wine grapes from real terroir and then dealcoholizes them," Restaino says. "It's a real pleasure when you drink a wine with no alcohol and the flavor profile really stays the same as if it were a traditionally made wine."
