SMCI to Enter Client, Edge and Consumer AI Markets: What's Next?

Super Micro Computer SMCI has been equipping enterprises with its rack-scale compute architecture for large-scale AI training, enterprise AI inference and training, visualization and design, content delivery and virtualization and AI edge. With this business model at play, the company projects to achieve $36 billion in revenues in fiscal 2026, indicating a massive 64% year-over-year growth.

Now the company plans to leverage its expertise in AI-optimized servers, GPUs, and energy-efficient system design to deliver powerful yet compact solutions for PCs, edge AI, and embedded applications. SMCI has unveiled a broad AI portfolio spanning Super AI Station, Supermicro SYS-542T-2R, Supermicro AI PC, Supermicro Edge AI Systems and Supermicro's Fanless Compact Edge System, challenging the existing players in this market.

Its Super AI Station comes integrated with the NVIDIA GB300 Grace Blackwell Ultra Desktop superchip in a compact and liquid-cooled form. This will deliver five times AI PFLOPS of computing power compared to traditional PCs while also ensuring coherent memory, low latency, and strong data security for on-prem AI development.

Supermicro SYS-542T-2R comes integrated with Xeon 6-based and targets agentic AI, media, and VDI workloads, while SMCI’s AMD-powered AI PCs bring local AI to offices. Compact AMD EPYC and Intel Core Ultra edge systems enable efficient, secure AI inference across retail, industry, robotics, and enterprise deployments.

With these new launches, SMCI is set to disrupt the AI PC market, which is witnessing a CAGR 19.1% and is expected to be a $91.2 billion market by 2030, per a report by MarketsAndMarkets. While the market itself has a huge growth opportunity, the question remains how the competitors will respond to SMCI’s newest venture.

How Competitors Fare Against SMCI

Dell Technologies DELL and HP Inc. HPQ have already entered this market in early 2025. Given that Dell and HP hold market shares of 13.3% and 19.8%, respectively, in the global PC market, according to IDC, SMCI’s entry into this space is a development that warrants close investor attention.

HP has a range of AI-based computing devices like HP OmniBook Ultra Flip 14-inch Next-Gen AI PC, HP EliteBook X 14-inch Next-Gen AI PC, Z by HP Gen AI Lab, HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop and HP OmniStudio PC, which are likely to gain traction among consumers, driving its top-line growth. Dell has numerous workstations that offer AI capabilities. These workstations are XPS 13, Inspiron 14 Plus, Inspiron 14, Latitude 7455 and Latitude 5455.

SMCI’s Price Performance, Valuation and Estimates

Shares of SMCI have lost 40.6% in the past six months against the Zacks Computer- Storage Devices industry’s appreciation of 72.7%.

SMCI 6-Month Performance Chart

From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.44X, down from the industry’s average of 1.94X.

SMCI Forward 12-Month (P/S) Valuation Chart

The Zacks Consensus Estimate for SMCI’s fiscal 2026 and fiscal 2027 earnings implies year-over-year growth of 2.43% and 41.78%, respectively. The estimates for fiscal 2026 have been revised downward in the past 30 days, while the 2027 estimate has been revised upward in the past 30 days.

SMCI 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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