$SUPER MICRO COMPUTER INC(SMCI)$ HPE just handed the market yet another confirmation that the AI infrastructure buildout is picking up speed, coming right on the heels of Dell.
HPE's quarter:
- Revenue hit $12.2B, up 34% YoY
- Server revenue reached $6.8B, up 35%
- Data-center networking jumped 112%
- Cloud & AI revenue came in at $9B, up 25%
- They raised the FY26 growth outlook to 34–37%
- October-quarter revenue guidance of $13.9–$14.8B blew past the $13B consensus
The takeaway here is pretty clear: AI infrastructure spending is not slowing down.
Dell confirmed it. HPE confirmed it. And SMCI sits right in the middle of the hyperscale AI buildout that both of these companies are scrambling to capture.
The piece tries to paint hyperscale as a "low-margin race." Fine. But when AI factories are going up at this kind of scale, volume plus execution plus gradually improving margins can turn into a serious earnings engine.
That's the core of why I think the market is mispricing SMCI. Every company around it keeps reporting surging AI demand, yet SMCI still trades with a heavy skepticism discount. At some point the narrative has to catch up with the numbers.
DELL earnings: check.
HPE earnings: check.
AI server demand: check.
AI networking demand: check.
Hyperscale capex: check.
Now think about what happens when Wall Street stops treating SMCI like AI infrastructure growth is fading.
I'm bullish. Very bullish.
$NVIDIA(NVDA)$ $Dell Technologies Inc.(DELL)$ $Hewlett Packard Enterprise(HPE)$ $Advanced Micro Devices(AMD)$
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