Forget Super Micro Computer: 1 Unstoppable AI Hardware Powerhouse to Buy Hand Over Fist After the Pullback Quick Read – SMCI missed Q3 revenue estimates by 18%, burned $6.6B in operating cash, and faces an export-control investigation with still-unaudited financials. – Dell…
rged 757% in AI server revenue to $16B in a single quarter while returning $2.1B to shareholders as SMCI dilutes investors with a $7B raise. – Dell’s 2% post-earnings dip puts shares at $410 against an analyst target of $484, with a forward P/E of just 23 on 47% revenue growth. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn’t make the cut. Grab the names FREE today
Super Micro Computer (NASDAQ:SMCI) is back in the headlines after announcing a $7 billion equity and debt raise meant to fund a flood of AI server orders, and the retail crowd is treating it like a comeback story. But here’s what you should actually be watching. The SMCI Trade Is a Dilution Trap Strip away the AI-server narrative and Supermicro is a low-margin assembler with a governance cloud.
Q3 FY26 revenue came in at $10.24 billion against a $12.45 billion estimate, a 17.75% miss despite a tailwind that should make missing impossible. GAAP gross margin recovered to a still-thin 9.9%, the company burned $6.6 billion in cash from operations, and total bank debt plus convertibles ballooned to $8.8 billion. The kicker: results were filed preliminary and unaudited while the board runs an independent review related to export-control matters.