Super Micro Computer, Inc.

AI-server maker with explosive growth and strong FCF, but razor-thin hardware margins and a governance overhang.

Strengths

• Explosive growth and FCF — revenue +46.6% (83rd), FCF $1.53B (90th)
• Good returns, strong liquidity — ROE 16.6% (68th), current ratio 5.25 (88th)

Risks

• Razor-thin gross margin — 11.1% (5th) — commoditized server assembly
• Accounting/governance history and disclosure risk per risk factors — per 10-K
• Customer/component concentration (Nvidia GPUs) — per 10-K

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Material weakness• We have identified material weaknesses in our internal control over financial reporting, which could, if not remediated, adversely affect our ability to report our financial condition and results of
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Chronic dilutionShare count +81%/yr over 4y (dilution, book value/share -47%)
• Strong balance sheetStrong balance sheet — $5.3B cash & investments
• China exposure• Our operations are impacted by complex laws, rules and regulations related to export control to which our business is subject, and rapid changes in such laws, rules, and regulations as well as polit
• Notable holderHeld by 6 notable fund(s): STATE STREET CORP, CITADEL ADVISORS LLC, GOLDMAN SACHS GROUP INC +3 more (as of 2026-03-31)
• Revenue declineRevenue -19.2% YoY
• New fund positionNotable fund(s) opened this quarter: Bridgewater Associates, LP, RENAISSANCE TECHNOLOGIES LLC