I Was Wrong About Super Micro Computer (Rating Upgrade)

The article turns more constructive on Super Micro Computer (SPCX.OQ) after its preliminary fourth-quarter update, arguing that the company’s gross margin range of 15%-17% is nearly double prior guidance and may reflect a structural shift toward higher-value AI infrastructure offerings. The piece says new orders topped $60 billion, reinforcing demand strength even though revenue is still being held back by deployment timing and customer readiness. Despite the improved fundamentals, the stock still trades at what the author views as a modest valuation relative to its growth: 11x forward non-GAAP EPS, 0.55x price-to-sales, and a 0.38 forward PEG. The upcoming August earnings report is highlighted as the key catalyst that will determine whether software, liquid cooling, and DCBBS can support sustained double-digit margins and justify a higher multiple.