We recently published 10 Easy Double-Digit Gainers. Super Micro Computer Inc. (NASDAQ:SMCI) was one of the best performers last week.
Super Micro grew its share prices by 18.10 percent week-on-week, with investor sentiment primarily bolstered by its target to grow its sales further by more than double, encouraged by its stellar second-quarter results.
In an earnings call during the week, Super Micro Computer Inc. (NASDAQ:SMCI) said that its net income in the second quarter of fiscal year 2026 jumped by 25 percent to $400.56 million from $320.6 million in the same period a year earlier. Net sales soared by 123 percent to $12.68 billion from $5.68 billion.
A Super Micro server. Photo from Super Micro website
For the six-month period, net income declined by 23.6 percent to $568.8 million from $744.9 million, while net sales jumped by 52 percent to $17.7 billion from $11.6 billion.
Super Micro Computer Inc. (NASDAQ:SMCI) attributed the results to its AI server and storage technology foundation, strong customer engagements, and expanding global manufacturing footprint.
Looking ahead, Super Micro Computer Inc. (NASDAQ:SMCI) is targeting to book $12.3 billion in net sales for the third quarter ending March 2026, which would imply a 167 percent growth from the $4.6 billion in the same quarter last year.
For the full fiscal year, net sales are projected to be at $40 billion, or an implied growth of 82 percent versus $21.97 billion in the full fiscal year 2025.
While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
