Risk factor
Very high price volatility
Profitability factor
Very low or no dividends
About
Super Micro Computer, Inc. designs and manufactures advanced, high-performance server and storage solutions. These offerings leverage a modular and open architecture and are distributed globally, including across the United States, Europe, and Asia. The company's extensive product portfolio encompasses complete server and storage systems, modular blade servers, workstations, full rack solutions, networking equipment, and crucial server sub-systems like boards, chassis, and power supplies. It also develops sophisticated server management and security software, notably its comprehensive Server Management Suite which includes tools such as Supermicro Server Manager, Supermicro Power Management, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. Beyond hardware and software, Super Micro delivers a wide array of professional services, including system integration, configuration, software updates, technical documentation, project planning, verification testing, and training. Comprehensive post-sales support is also provided through help desks, on-site product assistance, and ongoing maintenance. These cutting-edge solutions serve diverse, high-demand sectors such as enterprise data centers, cloud computing, artificial intelligence (AI), 5G infrastructure, and edge computing environments. Distribution occurs via a multi-channel approach, leveraging direct and indirect sales teams, distributors, value-added resellers (VARs), system integrators, and original equipment manufacturers (OEMs). Established in 1993, the company maintains its headquarters in San Jose, California.
Company Valuation
Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. In particular, the stock is reasonably priced on P/E, of fair value on EV/EBITD.
Target Price
The average target price of SMCI is 36 and suggests 18% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decre