Stocks
Super Micro Computer Rides AI Boom, But Discounted Price Raises Questions
Super Micro Computer (SMCI) is back in the spotlight as investors bet on its AI infrastructure growth. The company has seen a record backlog of over $60 billion in AI server orders and a rebound in gross margins to 17.5%, boosting investor confidence.
A new partnership with Cisco and Nvidia will plug Supermicro's high-density servers into Cisco's Secure AI Factory, solidifying its position in large-scale AI deployments.
Despite this momentum, SMCI remains heavily discounted compared to peers like Dell, trading at around 8-9 times FY2027 earnings and sitting about 61% below the industry average valuation.