--- title: "SMCI Trades at Bargain Price Ahead of Earnings" type: "News" locale: "en" url: "https://longbridge.com/en/news/295334465.md" description: "Super Micro Computer (SMCI) trades at a bargain valuation ahead of its August 11 earnings report, with a forward P/E of 10.97 significantly below sector medians. Despite expected revenue growth driven by AI demand, the stock faces headwinds from governance concerns regarding chip exports to China and rising debt levels. Analysts hold mixed views, with some lowering price targets, while technical indicators suggest potential bearish risks despite strong fundamental growth projections." datetime: "2026-08-09T19:51:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295334465.md) - [en](https://longbridge.com/en/news/295334465.md) - [zh-HK](https://longbridge.com/zh-HK/news/295334465.md) --- # SMCI Trades at Bargain Price Ahead of Earnings **Super Micro Computer** (NASDAQ:SMCI) has wavered this year and is underperforming the broader market. It has risen by 3.9% this year, while the blue-chip Nasdaq 100 and S&P 500 indices have jumped by double digits. It remains 75% below its all-time high. ## SMCI Stock Has Become a Bargain Super Micro’s performance has made it a bargain on various multiples. Benzinga data shows that the company has a forward price-to-earnings ratio of 10.97, lower than the technology sector median of 23. Its five-year average is 17.  Additionally, the company’s forward PEG ratio has dropped to just 0.38, which is also lower than the industry median of 1.28.  In contrast, **Dell** (NYSE:DELL) has a forward P/E ratio of 24, while **Hewlett Packard Enterprise** (NYSE:HPE) has a multiple of 16. Lenovo, another top competitor in the AI server industry, has a multiple of 18. Super Micro Computer’s discount is because the company continues to face some major challenges despite its revenue growth. These challenges explain why its short interest has  jumped to 15%.  One of the risks is that its top executives, including its founders, were accused of smuggling **Nvidia** (NASDAQ:NVDA) chips to China, raising some governance concerns. Just recently, Taiwan expanded the smuggling probe. At the same time, its debt has jumped. It ended the first quarter with over $2 billion in short-term debt, up sharply from $75 million in the same period last year. Its long-term debt jumped to over $2 billion, while its convertible notes soared to $4.6 billion. The company’s free cash flow was minus $6.6 billion. **Read Also: VOO, SPY, SPYM ETF Inflows Jump as S&P 500 Index Q2 Earnings Growth Hits 50%** ## Super Micro Computer to Publish Earnings This Week The next important catalyst for the SMCI stock will be its earnings, which will come out on August 11. These results will provide more information about its business growth and margins, which have continued expanding. With the AI boom continuing, analysts predict that its revenue will come out at $11.5 billion, up by 100% from the same period last year. Its guidance for the current quarter is expected to be $12 billion, up by 140% YoY.  Similarly, the earnings-per-share is expected to surge from 41 cents to 96 cents, solidifying its margin expansion.  Despite these growth metrics, analysts have a mixed opinion on the Supermicro stock. For example, Mizuho’s Vijay Rakesh recently lowered his target from $44 to $34, while Raymond James slashed from $45 to $39. Goldman Sachs has a sell rating on the stock.  ## Technicals Suggest that SMCI Stock is at Risk _Supermicro stock chart | Source: TradingView_ The weekly chart shows that the stock has moved sideways in the past few months. It formed a strong bottom at $19.50, its lowest level in November 2024 and March this year. As a result, it has formed a descending triangle pattern, a common bearish sign. It also remains below the 50-week moving average, a sign that bears remain in control. Therefore, there is a risk that the stock will have a bearish breakout after its earnings. If this happens, it may drop and retest the support of $24. However, a move above the moving average of $33 will invalidate the bearish outlook. **Read Also: S&P 500 Outlook: Top Three Catalysts to Watch This Week** _Image: Shutterstock_ ### Related Stocks - [SMCI.US](https://longbridge.com/en/quote/SMCI.US.md) - [SMCL.US](https://longbridge.com/en/quote/SMCL.US.md) - [SMYY.US](https://longbridge.com/en/quote/SMYY.US.md) - [SMCX.US](https://longbridge.com/en/quote/SMCX.US.md) - [SMCZ.US](https://longbridge.com/en/quote/SMCZ.US.md) - [SMCY.US](https://longbridge.com/en/quote/SMCY.US.md) - [SMCC.US](https://longbridge.com/en/quote/SMCC.US.md) - [.NDX.US](https://longbridge.com/en/quote/.NDX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [SPYM.US](https://longbridge.com/en/quote/SPYM.US.md) - [DELL.US](https://longbridge.com/en/quote/DELL.US.md) - [HPE.US](https://longbridge.com/en/quote/HPE.US.md) - [00992.HK](https://longbridge.com/en/quote/00992.HK.md) - [LNVGY.US](https://longbridge.com/en/quote/LNVGY.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [MFG.US](https://longbridge.com/en/quote/MFG.US.md) - [8411.JP](https://longbridge.com/en/quote/8411.JP.md) - [RJF.US](https://longbridge.com/en/quote/RJF.US.md) - [GS.US](https://longbridge.com/en/quote/GS.US.md) - [HPE-C.US](https://longbridge.com/en/quote/HPE-C.US.md) - [80992.HK](https://longbridge.com/en/quote/80992.HK.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [RJF-B.US](https://longbridge.com/en/quote/RJF-B.US.md) - [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md) ## Related News & Research - [Supermicro to report Q4 results in latest test for AI infrastructure company](https://longbridge.com/en/news/295452911.md) - [Opportunity Beckons Ahead of Super Micro Stock Earnings, Says Top Investor](https://longbridge.com/en/news/295418100.md) - [If You Invested $100 In Super Micro Computer Stock 15 Years Ago, You Would Have This Much Today](https://longbridge.com/en/news/294875744.md) - [Super Micro Computer Will Report Q4 Earnings on August 11. 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