S&P 500 jumps as tech rallies as investors eye end of government shutdown
SAN JOSE - Super Micro Computer, Inc. (NASDAQ:SMCI), a prominent player in the Technology Hardware industry with a market capitalization of $31.7 billion, announced on Wednesday it has begun shipping new 4-socket server systems powered by Intel Xeon 6 processors, targeting enterprise database and mission-critical workloads. The company has demonstrated remarkable growth, with revenue increasing 82% over the last twelve months. According to InvestingPro analysis, which offers comprehensive insights through its Pro Research Reports covering 1,400+ top stocks, SMCI maintains strong financial health with a current ratio of 6.66.
The new servers feature up to 344 cores per system using four Intel Xeon 6 processors with Performance-Cores and support up to 16TB of memory. The systems are CXL 2.0 ready and can accommodate up to six double-width GPUs for AI workloads in the 4U configuration, while the 2U model supports two double-width GPUs. This product expansion comes as SMCI trades at a P/E ratio of 27.3, reflecting market confidence in its growth potential.
"These new 4-socket servers are addressing the needs of the most demanding enterprises worldwide, who require the simplicity and serviceability of a single system with up to 16TB of memory, and up to 6 double-width GPUs," said Charles Liang, president and CEO of Supermicro, according to the press release.
The servers are certified for SAP HANA and Oracle Linux, allowing organizations to scale up workloads within a single node rather than scaling horizontally across networks.
Karin Eibschitz, Intel Corporate Vice President and General Manager Data Center Group, noted that the systems deliver "powerful performance for large-scale database and enterprise applications" with more cores, faster memory support, and up to 20 PCIe 5.0 slots.
The company states the new servers are designed for applications requiring large memory footprints with massive processing power, including high-performance computing, in-memory databases, and scientific simulations that rely on CPU computing with low latencies.
Supermicro positions these systems as reducing complexity when implementing high-performance data centers for enterprise applications including AI, databases, analytics, virtualization, and scientific workloads.
In other recent news, Super Micro Computer has seen several developments that may interest investors. Citi raised its price target for the company from $37 to $52, maintaining a Neutral rating, due to continued demand in the AI markets and a ramp-up of new products. However, Citi also expressed concerns about potential margin pressure from competitors like DELL and HPE. Meanwhile, Mizuho increased its price target to $47, citing strong AI server demand and robust orders from Tier 2 cloud service providers. Mizuho also adjusted its revenue and earnings estimates for fiscal 2026 and 2027, aligning closely with consensus expectations.
In another development, Super Micro’s BigTwin server has received immersion cooling certification from Intel, which enhances its energy efficiency for data centers. This certification ensures the BigTwin server can function effectively when submerged in dielectric fluid, a method that could lead to more sustainable cooling solutions. KeyBanc initiated coverage of Super Micro Computer with a Sector Weight rating, pointing out competitive pressures that might affect the company’s profitability. KeyBanc also highlighted concerns about recent accounting and execution issues, suggesting that Super Micro needs to meet high expectations to justify its current valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.