$SUPER MICRO COMPUTER INC(SMCI-To The Moon - Tiger Brokers Online Investing Community - To The Moon

$SUPER MICRO COMPUTER INC(SMCI)$ This Barron's piece on $Dell Technologies Inc.(DELL)$ basically confirms the AI server boom is still accelerating. Dell is expected to post $44.9B revenue, with server/networking revenue projected at $25.2B, up 95% YoY.

The part that stands out for bulls is the valuation. Dell trades around 21.5x forward earnings, nearly double its 5-year average of 10.9x.

Barron's specifically points to Supermicro's better-than-expected Q4 earnings and its bullish FY outlook as evidence that AI infrastructure demand remains strong.

SMCI just delivered FY26 revenue of $39.1B, up 78%, along with over $60B in new orders and a record backlog entering FY27. Q4 revenue came in at $11.1B versus $5.8B a year ago, gross margin rebounded to roughly 17.5%, and FY27 revenue guidance is $65B to $72B.

So the market is willing to give Dell a major valuation expansion because of AI servers, but SMCI, one of the fastest-growing pure-play AI infrastructure names, is supposed to stay discounted forever? That valuation gap doesn't make sense indefinitely.

If Dell crushes its earnings report and raises its AI-server outlook again, that is not just a positive signal for Dell. It would be another validation of the entire AI infrastructure cycle, and SMCI is sitting directly in the middle of it. $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$

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Dell is expected to post $44.9B revenue, with server/networking revenue projected at $25.2B, up 95% YoY.</p>\n<p>The part that stands out for bulls is the valuation. Dell trades around 21.5x forward earnings, nearly double its 5-year average of 10.9x.</p>\n<p>Barron's specifically points to Supermicro's better-than-expected Q4 earnings and its bullish FY outlook as evidence that AI infrastructure demand remains strong.</p>\n<p>SMCI just delivered FY26 revenue of $39.1B, up 78%, along with over $60B in new orders and a record backlog entering FY27. Q4 revenue came in at $11.1B versus $5.8B a year ago, gross margin rebounded to roughly 17.5%, and FY27 revenue guidance is $65B to $72B.</p>\n<p>So the market is willing to give Dell a major valuation expansion because of AI servers, but SMCI, one of the fastest-growing pure-play AI infrastructure names, is supposed to stay discounted forever? That valuation gap doesn't make sense indefinitely.</p>\n<p>If Dell crushes its earnings report and raises its AI-server outlook again, that is not just a positive signal for Dell. It would be another validation of the entire AI infrastructure cycle, and SMCI is sitting directly in the middle of it. <a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a> <a href=\"https://ttm.financial/S/AMD\">$Advanced Micro Devices(AMD)$&nbsp;</a></p></body></html>","htmlText":"<html><head></head><body><p><a href=\"https://ttm.financial/S/SMCI\">$SUPER MICRO COMPUTER INC(SMCI)$&nbsp;</a>This Barron's piece on <a href=\"https://ttm.financial/S/DELL\">$Dell Technologies Inc.(DELL)$&nbsp;</a> basically confirms the AI server boom is still accelerating. Dell is expected to post $44.9B revenue, with server/networking revenue projected at $25.2B, up 95% YoY.</p>\n<p>The part that stands out for bulls is the valuation. Dell trades around 21.5x forward earnings, nearly double its 5-year average of 10.9x.</p>\n<p>Barron's specifically points to Supermicro's better-than-expected Q4 earnings and its bullish FY outlook as evidence that AI infrastructure demand remains strong.</p>\n<p>SMCI just delivered FY26 revenue of $39.1B, up 78%, along with over $60B in new orders and a record backlog entering FY27. Q4 revenue came in at $11.1B versus $5.8B a year ago, gross margin rebounded to roughly 17.5%, and FY27 revenue guidance is $65B to $72B.</p>\n<p>So the market is willing to give Dell a major valuation expansion because of AI servers, but SMCI, one of the fastest-growing pure-play AI infrastructure names, is supposed to stay discounted forever? That valuation gap doesn't make sense indefinitely.</p>\n<p>If Dell crushes its earnings report and raises its AI-server outlook again, that is not just a positive signal for Dell. It would be another validation of the entire AI infrastructure cycle, and SMCI is sitting directly in the middle of it. <a href=\"https://ttm.financial/S/NVDA\">$NVIDIA(NVDA)$&nbsp;</a> <a href=\"https://ttm.financial/S/AMD\">$Advanced Micro Devices(AMD)$&nbsp;</a></p></body></html>","text":"$SUPER MICRO COMPUTER INC(SMCI)$ This Barron's piece on $Dell Technologies Inc.(DELL)$ basically confirms the AI server boom is still accelerating. Dell is expected to post $44.9B revenue, with server/networking revenue projected at $25.2B, up 95% YoY. The part that stands out for bulls is the valuation. Dell trades around 21.5x forward earnings, nearly double its 5-year average of 10.9x. Barron's specifically points to Supermicro's better-than-expected Q4 earnings and its bullish FY outlook as evidence that AI infrastructure demand remains strong. SMCI just delivered FY26 revenue of $39.1B, up 78%, along with over $60B in new orders and a record backlog entering FY27. Q4 revenue came in at $11.1B versus $5.8B a year ago, gross margin rebounded to roughly 17.5%, and FY27 revenue guidance is $65B to $72B. So the market is willing to give Dell a major valuation expansion because of AI servers, but SMCI, one of the fastest-growing pure-play AI infrastructure names, is supposed to stay discounted forever? That valuation gap doesn't make sense indefinitely. If Dell crushes its earnings report and raises its AI-server outlook again, that is not just a positive signal for Dell. It would be another validation of the entire AI infrastructure cycle, and SMCI is sitting directly in the middle of it. $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/603199889102336","repostId":0,"isVote":1,"tweetType":1,"viewCount":161,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["NVDA","SMCI","AMD","DELL"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":1143,"optionInvolvedFlag":false,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/603199889102336"}