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Will SMCI's DCBBS Push Spark Growth in its Data Center Business?
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Key Takeaways
{\"0\":\"SMCI\'s DCBBS integrates liquid cooling to boost efficiency, power, and density for AI and HPC workloads.\",\"1\":\"The company expects $6-$7B in Q1 FY26 revenues from AI racks, DCBBS, software, and services.\",\"2\":\"SMCI stock has surged 46.7% YTD, outpacing industry growth of 2.8%, with lower valuation multiples.\"}
Super Micro Computer’s (SMCI - Free Report) Data Center Building Block Solutions (DCBBS) is experiencing traction among customers operating in artificial intelligence (AI), hyperscale and high-performance computing (HPC) space.
The DCBBS solution integrates rack-scale, plug-and-play architecture with direct liquid cooling to optimize thermal performance, reduce power consumption, and increase rack density, giving more computing power for the most demanding workloads.
The modular setup of DCBBS makes it easier to deploy for customers who desire a shorter time to deliver. SMCI has already installed several DCBBS systems for its customers and expects to generate revenues of $6 billion to $7 billion due to continued momentum in AI rack PnP, DCBBS, software, and services businesses in the first quarter of fiscal 2026.
For future prospects, Super Micro Computer is positioned to play a leading role in the transition toward more sustainable and high-performance data centers. The company expects the DCBBS to significantly contribute to revenue growth by tapping into the expanding AI and HPC infrastructure upgrade cycles.
The Zacks Consensus Estimate for Super Micro Computer’s 2026 and 2027 revenues is pegged at $32.5 billion and $37.5 billion, indicating year-over-year growth of 48% and 15%, respectively.
How Competitors Fare Against SMCI
Super Micro Computer’s DCBBS faces competition from Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) , which provide liquid cooling solutions. Hewlett Packard Enterprise offers liquid-cooled HPC and AI servers through its HPE Cray and Apollo systems.
Dell offers liquid cooling architectures through its Apex and PowerEdge platforms. Dell has designed its AI server solutions to be custom and modular by adding both air and liquid cooling features with 24-hour rack deployment turnaround and end-to-end deployment services. These key differentiators make its server easy to deploy, hence encouraging smoother adoption.
However, Super Micro Computer holds a better opportunity with its DCBBS due to its fully integrated, rack-scale, plug-and-play design.
SMCI’s Price Performance, Valuation and Estimates
Shares of SMCI have gained 48.9% year to date compared with the Zacks Computer- Storage Devices industry’s growth of 36.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.84X, down from the industry’s average of 1.71X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMCI’s fiscal 2026 earnings implies a year-over-year growth of 23.3% and the same for fiscal 2027 indicates growth of 29.2%. The estimates for fiscal 2025 and 2026 have been revised downward in the past 60 days.
Image: Bigstock
Will SMCI's DCBBS Push Spark Growth in its Data Center Business?
Key Takeaways
Super Micro Computer’s (SMCI - Free Report) Data Center Building Block Solutions (DCBBS) is experiencing traction among customers operating in artificial intelligence (AI), hyperscale and high-performance computing (HPC) space.
The DCBBS solution integrates rack-scale, plug-and-play architecture with direct liquid cooling to optimize thermal performance, reduce power consumption, and increase rack density, giving more computing power for the most demanding workloads.
The modular setup of DCBBS makes it easier to deploy for customers who desire a shorter time to deliver. SMCI has already installed several DCBBS systems for its customers and expects to generate revenues of $6 billion to $7 billion due to continued momentum in AI rack PnP, DCBBS, software, and services businesses in the first quarter of fiscal 2026.
For future prospects, Super Micro Computer is positioned to play a leading role in the transition toward more sustainable and high-performance data centers. The company expects the DCBBS to significantly contribute to revenue growth by tapping into the expanding AI and HPC infrastructure upgrade cycles.
The Zacks Consensus Estimate for Super Micro Computer’s 2026 and 2027 revenues is pegged at $32.5 billion and $37.5 billion, indicating year-over-year growth of 48% and 15%, respectively.
How Competitors Fare Against SMCI
Super Micro Computer’s DCBBS faces competition from Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) , which provide liquid cooling solutions. Hewlett Packard Enterprise offers liquid-cooled HPC and AI servers through its HPE Cray and Apollo systems.
Dell offers liquid cooling architectures through its Apex and PowerEdge platforms. Dell has designed its AI server solutions to be custom and modular by adding both air and liquid cooling features with 24-hour rack deployment turnaround and end-to-end deployment services. These key differentiators make its server easy to deploy, hence encouraging smoother adoption.
However, Super Micro Computer holds a better opportunity with its DCBBS due to its fully integrated, rack-scale, plug-and-play design.
SMCI’s Price Performance, Valuation and Estimates
Shares of SMCI have gained 48.9% year to date compared with the Zacks Computer- Storage Devices industry’s growth of 36.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI trades at a forward price-to-sales ratio of 0.84X, down from the industry’s average of 1.71X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SMCI’s fiscal 2026 earnings implies a year-over-year growth of 23.3% and the same for fiscal 2027 indicates growth of 29.2%. The estimates for fiscal 2025 and 2026 have been revised downward in the past 60 days.
Image Source: Zacks Investment Research
SMCI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here