Latest news with #SuperMicro
Yahoo
a day ago
- Business
- Yahoo
This little-known AI darling is climbing the Fortune 500 faster than any other company
In a year when the tech sector grappled with mass layoffs, volatile chip demand, and the frenzied race to scale AI infrastructure, one company surged ahead as the Fortune 500's biggest climber: Super Micro Computer. The San Jose-based IT hardware manufacturer posted explosive growth, jumping 206 spots to land at No. 292 more than any other company on this year's list. Super Micro more than doubled its revenue to $14.99 billion, a 110% year-over-year increase, and led its industry in one-year profit growth, earning $1.15 billion. The company's rise is largely due to its strategic position at the intersection of AI, cloud computing, and data center infrastructure, three of the fastest-growing areas in technology today. At the center of its strategy is cofounder and CEO Charles Liang, who has emphasized vertical integration, with the company designing, testing, and assembling its products in-house. Liang says the company is laser-focused on innovation, including early-to-market compatibility with Nvidia chips and customizable server hardware built to handle diverse, high-performance workloads. That approach has positioned Super Micro to take advantage of soaring demand for AI-ready infrastructure. Super Micro has shipped more than 1.3 million server and storage nodes, which provide processing power and manage data for machines, and its systems now power many of the world's data centers. Through close partnerships with Nvidia and Intel, Super Micro has become a preferred vendor for companies building AI-optimized environments. Recently, it was selected by Elon Musk's xAI team to support the development of a 750,000-square-foot data center in Memphis, a major signal of the company's growing influence. Liang has spoken publicly about Super Micro's close alignment with Nvidia's product roadmap, which allows the company to quickly integrate new technologies. 'Whatever Nvidia develops, we pretty much sync up with them,' he told CRN in 2024. 'And that's another reason why, whenever they have a new product out, we have a new product available quicker than our competitors do.' As demand for AI accelerates, Super Micro plans to expand its server production capacity in the United States. The company is also investing in green computing, branding its systems as energy-efficient alternatives in a sector under increasing scrutiny for environmental impact. Investors have taken notice. Super Micro's market capitalization is approaching $24 billion, reflecting increased confidence in its trajectory. However, the company's rise has not come without controversy. In 2018, Nasdaq delisted the company for failing to file its financial reports on time. It was re-listed in 2020 following a settlement with the SEC. In August 2024, the company faced renewed scrutiny after Hindenburg Research published a report alleging questionable accounting practices and undisclosed third-party transactions. Soon after, the company missed multiple regulatory filing deadlines, and audit firm EY resigned. Super Micro and Liang are now facing multiple lawsuits and active investigations by both the SEC and the Department of Justice. The company has said it is cooperating with authorities. The company said that by February it had brought its financial reporting up to date, passed a new independent audit, and implemented leadership changes. It has hired a new general counsel and is actively searching for a new chief financial officer. Despite reporting third-quarter revenue below expectations in early May, Super Micro reiterated its growing confidence in meeting full-year growth targets, with Liang assuring investors that demand for AI infrastructure remains strong.'We are investing in people, processes, and systems to scale our foundation, advancing our leadership in liquid cooling technology, and delivering Data Center Building Block Solutions to achieve and surpass our revenue targets,' a company spokesperson told Fortune in an emailed statement. This story was originally featured on
Yahoo
a day ago
- Business
- Yahoo
This little-known AI darling is climbing the Fortune 500 faster than any other company
In a year when the tech sector grappled with mass layoffs, volatile chip demand, and the frenzied race to scale AI infrastructure, one company surged ahead as the Fortune 500's biggest climber: Super Micro Computer. The San Jose-based IT hardware manufacturer posted explosive growth, jumping 206 spots to land at No. 292 more than any other company on this year's list. Super Micro more than doubled its revenue to $14.99 billion, a 110% year-over-year increase, and led its industry in one-year profit growth, earning $1.15 billion. The company's rise is largely due to its strategic position at the intersection of AI, cloud computing, and data center infrastructure, three of the fastest-growing areas in technology today. At the center of its strategy is cofounder and CEO Charles Liang, who has emphasized vertical integration, with the company designing, testing, and assembling its products in-house. Liang says the company is laser-focused on innovation, including early-to-market compatibility with Nvidia chips and customizable server hardware built to handle diverse, high-performance workloads. That approach has positioned Super Micro to take advantage of soaring demand for AI-ready infrastructure. Super Micro has shipped more than 1.3 million server and storage nodes, which provide processing power and manage data for machines, and its systems now power many of the world's data centers. Through close partnerships with Nvidia and Intel, Super Micro has become a preferred vendor for companies building AI-optimized environments. Recently, it was selected by Elon Musk's xAI team to support the development of a 750,000-square-foot data center in Memphis, a major signal of the company's growing influence. Liang has spoken publicly about Super Micro's close alignment with Nvidia's product roadmap, which allows the company to quickly integrate new technologies. 'Whatever Nvidia develops, we pretty much sync up with them,' he told CRN in 2024. 'And that's another reason why, whenever they have a new product out, we have a new product available quicker than our competitors do.' As demand for AI accelerates, Super Micro plans to expand its server production capacity in the United States. The company is also investing in green computing, branding its systems as energy-efficient alternatives in a sector under increasing scrutiny for environmental impact. Investors have taken notice. Super Micro's market capitalization is approaching $24 billion, reflecting increased confidence in its trajectory. However, the company's rise has not come without controversy. In 2018, Nasdaq delisted the company for failing to file its financial reports on time. It was re-listed in 2020 following a settlement with the SEC. In August 2024, the company faced renewed scrutiny after Hindenburg Research published a report alleging questionable accounting practices and undisclosed third-party transactions. Soon after, the company missed multiple regulatory filing deadlines, and audit firm EY resigned. Super Micro and Liang are now facing multiple lawsuits and active investigations by both the SEC and the Department of Justice. The company has said it is cooperating with authorities. The company said that by February it had brought its financial reporting up to date, passed a new independent audit, and implemented leadership changes. It has hired a new general counsel and is actively searching for a new chief financial officer. Despite reporting third-quarter revenue below expectations in early May, Super Micro reiterated its growing confidence in meeting full-year growth targets, with Liang assuring investors that demand for AI infrastructure remains strong.'We are investing in people, processes, and systems to scale our foundation, advancing our leadership in liquid cooling technology, and delivering Data Center Building Block Solutions to achieve and surpass our revenue targets,' a company spokesperson told Fortune in an emailed statement. This story was originally featured on 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
Globe and Mail
3 days ago
- Business
- Globe and Mail
Is Super Micro Computer Stock a Buy, Sell, or Hold for June 2025?
In mid-May, Super Micro Computer (SMCI) unveiled its Data Center Building Block Solutions (DCBBS). The turnkey system is engineered to accelerate the establishment of liquid-cooled AI data centers while optimizing cost-efficiency. Set for deployment within three months, the solution brings together precision manufacturing, advanced management software, full-spectrum on-site services, and global reach. According to CEO Charles Liang, DCBBS goes the whole nine yards, from mapping out data center layouts to configuring network topologies and power backups. It is crafted to simplify operations and speed up AI infrastructure development. Customers could slash power usage by up to 40%, shrink data center footprint by 60%, and cut water use by 40%, driving a 20% drop in total cost of ownership. With this catalyst in mind, how should investors approach SMCI stock for June 2025? About Super Micro Stock San Jose, California-based Super Micro Computer (SMCI) has carved a solid niche in high-performance server and storage solutions, all anchored in modular and open architecture. With a market cap of $25 billion, the firm offers everything from rack mount and blade server systems to essential components that form the digital bedrock of today's enterprises. Super Micro shares have had a volatile trajectory. They are up more than 1,300% over the past five years, but have been halved over the past 52 weeks. The last month has been slightly more positive with a gain of 14%. Super Micro Misses on Q3 Earnings Super Micro's fiscal Q3 2025 painted a somber picture on May 6, as the firm came up short of Wall Street's expectations. Revenue for the quarter grew 19.5% year over year to $4.6 billion, well below analysts' consensus estimate of $5.4 billion. Non-GAAP net income plummeted by more than 50% to $194 million, with non-GAAP EPS more than halved to $0.31, missing the $0.50 projection by a wide margin. This disappointing result, however, did not catch many off guard. Late April had already seen Supermicro send up warning flares with its preliminary report. Much of the shortfall was chalked up to ' delayed customer-platform decisions, ' which, according to CEO Charles Liang, are not lost opportunities but merely postponed ones. He emphasized that many of these commitments are set to materialize in the June and September quarters, hinting that the company's long-term trajectory remains intact. Looking ahead, the company has set its Q4 revenue guidance between $5.60 billion and $6.40 billion, with non-GAAP EPS expected to range from $0.40 to $0.50. For fiscal 2025, it now anticipates revenue between $21.80 billion and $22.60 billion. In May, Supermicro also sealed a $20 billion multi-year deal with DataVolt to deploy AI server systems across Saudi Arabia and the U.S. The deal is monumental. Technology upgrades, including its direct liquid cooling platform, show that Supermicro is not resting on its laurels. Although fiscal Q4 2025 EPS is expected to fall 36.4% to $0.35 and full-year 2025 EPS by 13.9% to $1.73, analysts see a rebound next year, forecasting a 36.4% jump to $2.36 in fiscal 2026. What Do Analysts Expect for Super Micro Stock? Wall Street's verdict on the stock paints a nuanced picture, with the consensus settling at a 'Moderate Buy.' Out of 15 analysts, four are ringing the bell with a 'Strong Buy.' Meanwhile, three analysts lean toward a 'Moderate Buy.' On the sidelines, six prefer to stay put with a 'Hold,' while only two caution with a 'Strong Sell' stance. The Street-high target of $100 signals a possible surge of 143% from current levels.
CNA
5 days ago
- Business
- CNA
Dell raises annual profit forecast on strong AI server demand
Dell raised its annual profit forecast on Thursday, signaling growing demand for its AI-powered servers that are equipped with Nvidia's powerful chips. Shares of the company, whose servers are used by customers such as Elon Musk's AI startup xAI and CoreWeave, rose 2 per cent in extended trading. Dell and Super Micro Computer have benefited from growing demand for such servers, but the high cost of producing them and tough competition have pressured margins. "We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of fiscal 2025 and leaving us with $14.4 billion in backlog," Dell's Chief Operating Officer Jeff Clarke said. The results follow the U.S. Department of Energy's announcement on Thursday that it would launch a new supercomputer, named Doudna, which will use Dell and Nvidia's advanced technology to perform complex computing tasks. Dell now expects annual adjusted profit to be $9.40 per share, compared with its prior forecast of $9.30 per share. The company also reiterated its annual revenue outlook. It forecast second-quarter revenue to be between $28.5 billion and $29.5 billion, above analysts' average estimate of $25.05 billion, according to data compiled by LSEG. Dell's adjusted profit forecast for the second quarter of $2.25 per share was also above estimates of $2.09. The company's first-quarter revenue of $23.38 billion beat expectations of $23.14 billion, while its adjusted profit of $1.55 per share missed estimates of $1.69. "We note potential near-term margin pressure from competitive pricing, tariffs, and geographic mix shifts," Shreya Gheewala, equity analyst at CFRA Research, said. Revenue from Dell's infrastructure solutions group, which includes storage, software and server offerings, rose 12 per cent, while revenue from its client solutions group, that houses its PC business, rose 5 per cent.
Yahoo
6 days ago
- Business
- Yahoo
Dell (DELL) Reports Q1: Everything You Need To Know Ahead Of Earnings
Computer hardware and IT solutions company Dell (NYSE:DELL) will be announcing earnings results tomorrow after market close. Here's what investors should know. Dell missed analysts' revenue expectations by 2.5% last quarter, reporting revenues of $23.93 billion, up 7.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' operating income estimates. Is Dell a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Dell's revenue to grow 4% year on year to $23.13 billion, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.69 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dell has missed Wall Street's revenue estimates five times over the last two years. Looking at Dell's peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ posted flat year-on-year revenue, beating analysts' expectations by 0.9%, and Super Micro reported revenues up 19.5%, falling short of estimates by 2.7%. IonQ traded up 9.3% following the results while Super Micro was down 1.2%. Read our full analysis of IonQ's results here and Super Micro's results here. There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 8.5% on average over the last month. Dell is up 21.7% during the same time and is heading into earnings with an average analyst price target of $128.11 (compared to the current share price of $114.10). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
