📊 SMCI Key Takeaways
Is Super Micro Computer, Inc. (SMCI) a Good Investment?
Super Micro Computer demonstrates impressive 46.6% revenue growth but exhibits critical fundamental deterioration with negative $941M operating cash flow despite $569M reported net income, indicating severe earnings quality concerns and working capital distress. Despite strong balance sheet leverage, the company's inability to convert growth into cash generation, combined with flat net income growth and declining EPS despite massive revenue expansion, signals unsustainable unit economics and potential operational strain.
Why Buy Super Micro Computer, Inc. Stock? SMCI Key Strengths
- Strong top-line growth at 46.6% YoY ($17.7B revenue)
- Fortress balance sheet with minimal leverage (0.01x Debt/Equity) and $4.1B cash
- Exceptional interest coverage ratio of 40.4x indicates financial stability
SMCI Stock Risks: Super Micro Computer, Inc. Investment Risks
- Critical divergence: negative $941M operating cash flow vs. positive $569M net income suggests severe earnings quality issues or working capital crisis
- Zero net income growth and -12.5% EPS decline despite 46.6% revenue growth indicates margin compression and shareholder dilution
- Razor-thin 7.2% gross margin and 3.2% net margin in commoditized hardware market with no pricing power leaves zero margin for error
- Negative free cash flow of -$994.9M is unsustainable; at current burn rate, $4.1B cash buffer depletes within 4+ years
Key Metrics to Watch
- Operating cash flow trajectory and working capital management (inventory/receivables)
- Gross margin recovery and operating leverage realization
- Capital efficiency and return on equity improvement toward double-digit ROE
Super Micro Computer, Inc. (SMCI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Super Micro Computer, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SMCI Profit Margin, ROE & Profitability Analysis
SMCI vs Technology Sector: How Super Micro Computer, Inc. Compares
How Super Micro Computer, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Super Micro Computer, Inc. Stock Overvalued? SMCI Valuation Analysis 2026
Based on fundamental analysis, Super Micro Computer, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Super Micro Computer, Inc. Balance Sheet: SMCI Debt, Cash & Liquidity
SMCI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Super Micro Computer, Inc.'s revenue has grown significantly by 518% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.14 reflects profitable operations.
SMCI Revenue Growth, EPS Growth & YoY Performance
SMCI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $5.7B | $320.6M | $0.51 |
| Q1 2026 | $5.0B | $168.3M | $0.26 |
| Q3 2025 | $3.9B | $108.8M | $0.17 |
| Q2 2025 | $3.7B | $296.0M | $0.51 |
| Q1 2025 | $2.1B | $157.0M | $0.27 |
| Q3 2024 | $1.3B | $85.8M | $1.53 |
| Q2 2024 | $1.8B | $176.2M | $3.14 |
| Q1 2024 | $1.9B | $157.0M | $2.75 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Super Micro Computer, Inc. Dividends, Buybacks & Capital Allocation
SMCI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Super Micro Computer, Inc. (CIK: 0001375365)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SMCI
What is the AI rating for SMCI?
Super Micro Computer, Inc. (SMCI) has an AI rating of SELL with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SMCI's key strengths?
Claude: Strong top-line growth at 46.6% YoY ($17.7B revenue). Fortress balance sheet with minimal leverage (0.01x Debt/Equity) and $4.1B cash.
What are the risks of investing in SMCI?
Claude: Critical divergence: negative $941M operating cash flow vs. positive $569M net income suggests severe earnings quality issues or working capital crisis. Zero net income growth and -12.5% EPS decline despite 46.6% revenue growth indicates margin compression and shareholder dilution.
What is SMCI's revenue and growth?
Super Micro Computer, Inc. reported revenue of $17.7B.
Does SMCI pay dividends?
Super Micro Computer, Inc. does not currently pay dividends.
Where can I find SMCI SEC filings?
Official SEC filings for Super Micro Computer, Inc. (CIK: 0001375365) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SMCI's EPS?
Super Micro Computer, Inc. has a diluted EPS of $0.86.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SMCI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Super Micro Computer, Inc. has a SELL rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SMCI stock overvalued or undervalued?
Valuation metrics for SMCI: ROE of 8.1% (sector avg: 22%), net margin of 3.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SMCI stock in 2026?
Our dual AI analysis gives Super Micro Computer, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SMCI's free cash flow?
Super Micro Computer, Inc.'s operating cash flow is $-941.4M, with capital expenditures of $53.5M. FCF margin is -5.6%.
How does SMCI compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.2% (avg: 18%), ROE 8.1% (avg: 22%), current ratio 1.70 (avg: 2.5).