SMCI Projects $33B FY26 Revenues: Is the Growth Target Realistic?

Super Micro Computer, Inc. SMCI has set an ambitious target of generating revenues of at least $33 billion in fiscal 2026. This outlook represents whopping 50% year-over-year growth. In fiscal 2025, the company’s revenues soared 47% year over year to $22 billion despite supply constraints and delayed regulatory filing issues. The question now is whether Super Micro Computer can sustain such rapid growth momentum in a competitive and fast-evolving market.

SMCI is banking heavily on its Data Center Building Block Solutions (“DCBBS”), which offer modular, ready-to-deploy infrastructure for artificial intelligence (AI) data centers. As the solution reduces deployment time and lowers costs, management believes this approach will attract both hyperscale and enterprise customers. With several large-scale customers already onboard and more expected in fiscal 2026, SMCI sees DCBBS as a key growth engine.

Another factor supporting the target is the growing demand for AI computing. Partnerships with vendors like NVIDIA and Advanced Micro Devices position Super Micro Computer to deliver the latest GPU-powered platforms, which remain in high demand among cloud providers and sovereign AI projects. Expansion in Europe, Asia and the Middle East also offers additional growth avenues.

Nonetheless, scaling to $33 billion will depend on smooth execution, supply availability and steady AI investment cycles. Any delays in customer adoption or product launches could push growth expectations lower. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $32.54 billion, indicating a year-over-year increase of 48.1%.

SMCI’s Competition in AI Server and Data Center Market

Super Micro Computer competes with Dell Technologies DELL and Hewlett Packard Enterprise HPE in the AI and data center market.

Dell Technologies is a major supplier of servers and storage systems, with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts. Though Dell Technologies has not grown as quickly as SMCI in AI-specific systems, its ability to bundle hardware with services makes it a strong rival.

Hewlett Packard Enterprise is also expanding aggressively into AI and high-performance computing. Its GreenLake platform provides customers with flexible, cloud-like consumption models, which can be attractive to enterprises. Hewlett Packard Enterprise’s focus on hybrid cloud and AI workloads positions it as a direct competitor in areas where SMCI is seeking growth through its DCBBS strategy.

SMCI’s Price Performance, Valuation and Estimates

Shares of Super Micro Computer have risen around 44.6% year to date compared with the Zacks Computer – Storage Devices industry’s gain of 11.7%.

From a valuation standpoint, SMCI trades at a forward price-to-earnings ratio of 16.61, lower than the industry’s average of 17.71.

The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 23.3% and 29.2%, respectively. Estimates for fiscal 2026 and 2027 earnings have been revised downward in the past 30 days.

Super Micro Computer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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