SMCI Stock: Super Micro Computer Inc. (NASDAQ: SMCI) is gaining investor attention as it rides Nvidia’s AI momentum and expands globally with a major new partnership. The stock rose nearly 5% last Friday and is up about 35% over the past month.
A key driver of this surge is SMCI’s close integration with Nvidia’s Blackwell GPU rollout. Nvidia recently reported that its latest chips now make up 70% of data center revenue, doubling from the previous quarter. SMCI, known for its high-performance GPU servers, is benefiting directly from this growth.
Adding to the optimism, SMCI recently announced a $20 billion deal with Saudi Arabia’s DataVolt. The agreement positions SMCI as a major supplier of AI and cloud data center infrastructure, expanding its global presence and long-term growth potential.
The stock also faces a potential short squeeze. As of May 2025, about 20% of SMCI’s shares were sold short. If the price keeps rising, short sellers may be forced to buy back shares, pushing the stock even higher.
From a technical view, SMCI is trading just above its 200-day EMA. Analysts are watching the $50 resistance level. A breakout could drive the stock toward its March high near $65.
Financially, SMCI shows strong revenue growth but weak profitability. Revenue jumped 82.5% year-over-year to $21 billion. However, its operating margin is just 6.1%, and operating cash flow margin is only 0.7%, well below the S&P 500 average.
Despite this, the company remains financially healthy. It holds $2.5 billion in cash and has a low debt-to-equity ratio of 9.7%. These numbers indicate strong balance sheet stability.
SMCI has also proven resilient in past downturns. During the 2022 inflation shock and the COVID-19 crash, it outperformed the broader market and bounced back quickly.
In summary, while margins remain a concern, SMCI’s strong growth, strategic Nvidia partnership, and global expansion make it a stock to watch in the AI hardware space.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should consult with a licensed financial advisor before making any investment decisions.