2024-06-10 20:42:17 ET
Summary
- Super Micro has shown remarkable revenue growth, particularly in 2023, with a growth rate of 110% and a surge in share price of 214% YTD.
- Revenue growth drivers for Supermicro include the server and storage systems segment, AI servers, cloud computing, and the increasing amount of data creation.
- Super Micro's competitive advantages include its extensive product breadth, but it lacks competitiveness in product combination and DLC servers.
Super Micro Computer Inc. (Supermicro) ( SMCI ) specializes in manufacturing servers and storage solutions. The company has shown remarkable revenue growth over the past three years, particularly in 2023E, with a growth rate of 109.7%. Additionally, its share price has surged by 213.5% YTD. Analysts' consensus forecasts an impressive 58.4% revenue growth for FY2025, with expected stabilization. In light of these events, we analyzed the company's overall business models, revenue growth drivers, and competitive advantages that could support continued high revenue growth. Based on our findings, we projected the company's revenue growth and assessed whether Supermicro deserves a higher valuation.
Revenue Growth Drivers
In the first section, we analyzed the company’s revenue growth over the years and identified the growth drivers for servers....
Read the full article on Seeking Alpha
For further details see:
Super Micro Computer: High Growth Server And Storage Maker