SMCI
New bull case, same old baggage
Super Micro Computer is back in the spotlight, and this time the vibe is less “what’s broken now?” and more “maybe this thing still has legs.” The upgrade leans on a simple idea: margins may have already found their floor, and the stock still screens as pretty compelling if you believe AI infrastructure demand isn’t a one-quarter fad.
The numbers are doing the heavy lifting
The bullish pitch points to Q3 results and guidance that came in ahead of expectations. Revenue hit $10.24B, and net income jumped to $483.4M, which is a pretty loud way of saying the AI server boom hasn’t exactly ghosted the company.
That matters because Super Micro has been living in a weird split-screen reality:
- business momentum on one side
- corporate governance headaches on the other
Investors tend to forgive a lot when the growth engine is still revving. But they also keep one eye on the exits when the accounting and controls conversation won’t go away.
Why the market should care
The bigger story here is that backlog is sitting at record highs and new manufacturing capacity is being brought online, which gives Super Micro more room to scale if demand holds up. In other words: the company isn’t just riding one hot quarter, it’s trying to build a bigger factory for the AI gold rush.
Big picture: if margins really are bottoming and AI orders keep flowing, the recent gloom could start looking a lot more like a buying opportunity than a warning sign.