Vic Malyala

Proud of the new Supermicro x NetApp collaboration: compute, networking, power, and liquid cooling designed to work with intelligent data infrastructure from day one — for enterprise AI, neoclouds, sovereign builds, and AI factories.

https://x.com/malyala/status/2105339849972875662?s=20

New SMCI collaboration was featured in the NetApp INSIGHT Flagship Annual customer, partner, technical, and investor conference which ended yesterday.

Partners Hope Cisco-Supermicro Deal Will Fill ‘Gap’ Left By Cisco UCS Server Shipment Delays

Super Micro Says AI Opportunity Could Reach $4 Trillion: ‘The Sky’s the Limit’

BENZINGA 9:47 AM ET 9/21/2026

Super Micro Computer Inc.(SMCI) stock rose about 3.5% on Monday as risk appetite remained firm and investors moved into higher-beta technology stocks.

The Nasdaq gained 0.98%, while the S&P 500 rose 0.64%.

Super Micro Sees Strong AI Demand

Super Micro continues to see strong artificial intelligence demand supporting another year of rapid growth as customers expand AI infrastructure spending.

Speaking at the Goldman Sachs Communacopia + Technology Conferenceon Sept. 10, Super Micro Senior Vice President of Corporate Development Michael Staiger said demand remained "pretty excellent."

He also said the company's roughly $60 billion order book supports its fiscal 2027 outlook.

Super Micro previously projected fiscal 2027 revenue of $65 billion to $72 billion.

Staiger said AI adoption is expanding across customers and appears to be developing into a multiyear cycle. Customers are also increasingly seeking complete infrastructure solutions instead of individual components.

Bigger AI Infrastructure Opportunity

Super Micro sees a massive runway for AI infrastructure growth, with Staiger pointing to a potential $2 trillion to $4 trillion total addressable market.

Staiger said the company currently estimates it holds about 10% of that market and sees further room to expand as customers adopt more complex AI systems. Looking ahead, he said "the sky's the limit" for where Super Micro could be in the next couple of years.

Super Micro sees growth opportunities across neocloud providers, enterprises and sovereign customers. The company expects its focus on integrated AI systems to help it capture a larger share of that opportunity over time.

The company is also expanding manufacturing capacity. Super Micro can currently produce about 6,000 racks per month. Capacity is split evenly between liquid-cooled and air-cooled systems.

Staiger said the company is also adding capacity in Johor and expanding other manufacturing facilities.

See More: Top Value Stocks

Integrated Systems Could Support Margins

Super Micro is expanding its Data Center Building Block Solutions, or DCBBS, strategy.

The offering combines servers with cooling, power, storage, networking and software. Staiger said the approach can help customers bring AI infrastructure online faster while increasing Super Micro's content in each deployment.

He said those higher-value systems support the company's goal of maintaining double-digit gross margins.

Software and services could also become a larger contributor. Staiger said the business generated $538 million in fiscal 2026 and carries higher margins than hardware.

Meanwhile, sovereign AI demand is beginning to emerge directly. Staiger said Super Micro has more than several sovereign deployments underway globally as governments build domestic AI infrastructure.

Super Micro Technical Analysis

SMCI remains in a constructive longer-term trend. The stock is trading above its 20-day, 50-day, 100-day and 200-day moving averages.

SMCI is about 6% above its 20-day simple moving average of $38.04. It is also nearly 28% above its 200-day SMA of$31.64.

The 20-day SMA remains above the 50-day SMA. In addition, the 50-day SMA crossed above the 200-day SMA in August, forming a bullish "golden cross."

However, short-term momentum has cooled. The MACD is below its signal line, while the histogram remains negative. That suggests buying momentum has weakened from the previous upswing.

Resistance sits near $42, while support is around $35.50. That support level is close to the 50-day exponential moving average of $35.48.

Analyst Outlook

Analysts have a Hold consensus rating and an average price forecast of $39.50.

Citigroup raised its price forecast to $39while maintaining a Neutral rating on Aug. 12. Goldman Sachs raised its forecast to $34 and kept a Sell rating. Mizuho maintained a Neutral rating and lifted its forecast to$35.

The stock trades at a price-to-earnings ratio of about 12.

Super Micro Benzinga Edge Rankings

SMCI scores strongly across several Benzinga Edge categories.

Its Momentum score stands at 90.31, while Quality is 94.35. Value scores 88.29, and Growth leads the group at 99.22.

The rankings point to strength across momentum, fundamentals, valuation and growth.

From a technical perspective, the mid-$30 range remains an important support area as the stock approaches resistance near $42.

Top ETF Exposure

SMCI is held by several technology-focused exchange-traded funds.

The iShares Future AI & Tech ETF(ARTY) has a 4.40% weighting in SMCI. The iShares U.S. Digital Infrastructure and Real Estate ETF has a 4.94% weighting, while the REX AI Equity Premium Income ETF(AIPI) has a 3.69% weighting.

Significant fund inflows or outflows could therefore create additional buying or selling pressure in SMCI shares.

Super Micro Price Action

SMCI Stock Price Activity: Super Micro shares were up 3.50% at $40.46 at the time of publication Monday, according to Benzinga Pro data.

Now Shipping

Vera Rubin NVL72 rack scale solutions.  First systems delivered to

SpaceXAI from Supermicro’s expanded US Manufacturing in San Jose, CA.

https://x.com/Supermicro/status/2102147916466958442?s=20

Estimated $5-$7 million per delivered rack in Q1 FY27.

The huge $40 call wall from last Friday is gone. Price discovery is underway. I'm looking for a retest of $60 region on the way to $110.

Probably only Charles Liang has the best insight on when these targets could be achieved. However, we reached 50 after the Q3 earnings report and Q4 was a better report. We tested 58 last October which is historically a strong month so it wouldn't surprise me to see us test this range again leading up to the Q1 FY27 Earnings report.

I discuss these milestone price targets on this post:

https://www.reddit.com/r/SMCIDiscussion/comments/1wbs4l4/smci_management_has_established_two_upcoming/

Notes from listening to SMCI Goldman Sachs Technology Conference Today:

• Complete solution DCBBS gives more control over customer readiness timing
• Software like Super Cloud Composer growing in importance in the total solution product mix
• ODM vs OEM competitive risk question: plenty of opportunity out there. SMCI excels in TTO and engineering intensity.
• Emphasized growing square footage of manufacturing space
• CPU products has always been an SMCI strength. Replacement cycle for installed base is ramping up to support agentic AI applications. Big exciting opportunity.
• Service model question: Legacy competitors have mature service orgs. New Agentic systems have opportunity for developing enhanced self healing systems. SMCI service org continuing to grow.
• SMCI seeing more diversity in customer base, better negotiated customer terms, Intense capital growth needs but doing a good job managing it.
• Sovereign and enterprise deployments expanding globally with significant market capture. 2-4 trillion fully funded TAM. 25% market capture opportunity for SMCI.
• SMCI focused on continuous Innovation and total solution offerings. SMCI not slowed or impeded by legacy enterprise technology or existing legacy Enterprise customer installs.

https://data-volt.com/media/breaking-news/humain-partners-datavolt-develop-100mw-of-a-360mw-ai-datacenter-in-neom/

SMCI has likely been benefiting from high margin Design Consulting contracts from DataVolt since the project was first announced in 2025. Neom Oxagon is part of Saudi Vision 2030 plan to diversify the Saudi economy. It's a lucrative, complex and convoluted long term opportunity for SMCI Sovereign AI:

https://www.reddit.com/r/SMCIDiscussion/comments/1ncr7xu/what_if_investors_forgot_about_the_20_billion/

https://www.reddit.com/r/SMCIDiscussion/comments/1p234ba/what_if_the_smci_datavolt_20_billion_saudi/

https://www.reddit.com/r/SMCIDiscussion/comments/1r8yrwi/saudi_humain_invested_3_billion_in_xai_series_e_a/

This new partnership with Cisco and Nvidia could be the catalyst that causes SMCI to re-rate. It destroys the Bear narrative that Nvidia is distancing from SMCI with Vera Rubin. There is now a mutually beneficial revenue flywheel being created where SMCI gets access to Cisco Enterprise customers and Cisco gets access to SMCI's growing Sovereign AI customers (e.g. Datavolt Neom Oxagon) across the globe. This is a true partnership and not a reseller arrangement.

Factor in the previously announced storage partnerships with industry leaders including Cloudian, DDN, Everpure (formerly Pure Storage), IBM, Nutanix, VAST Data, and WEKA to deliver fully integrated, enterprise-ready AI infrastructure and SMCI is now a one stop dominant player in the AI Factory space: https://ir.supermicro.com/news/news-details/2026/Supermicro-Launches-Seven-AI-Data-Platform-Solutions-with-NVIDIA-and-Leading-Ecosystem-Partners-to-Accelerate-Enterprise-AI-Innovation/default.aspx

After the strong Q3 earnings report SMCI steadily climbed to 50. After the blockbuster Q4 report, Charles Liang is making high margin (20%+) DCBBS deals to reach his performance award target of $110 and beyond. So "Is SMCI a future Fortune 100 company worth at least $110 being offered for less than $40?" When I first posed this question, it was selling for less than $25.

Charles Liang's decision to pursue dilutive financing made this partnership possible. He predicted:

"In the AI era, every data center is racing to seize massive opportunities. Yet, speed is everything. A delay in deployment can result in losing not just potential revenue, but entire business opportunities altogether. This is why Supermicro is laser-focused on one critical metric: Time-to-Online (TTO)."

Supermicro, with its massive direct inventory stockpile and superior modular architecture, was brought in because it had scarce AI Compute solutions ready to ship right now.

This partnership creates an incredibly powerful hybrid sales pipeline. Cisco provides its massive institutional enterprise market footprint and premier networking stack (utilizing its Silicon One and Nexus One technologies). Meanwhile, Supermicro plugs its high-density compute blocks (DCBBS) right into the middle of that framework.

A Cisco partner CEO says "The big winner here is Supermicro".

Partners Hope Cisco-Supermicro Deal Will Fill ‘Gap’ Left By Cisco UCS Server Shipment Delays

By Steven Burke, Joseph F. Kovar

August 25, 2026, 2:50 PM EDT

>‘Cisco cannot deliver UCS servers,’ says a top executive at a CRN Solution Provider 500 Cisco partner, who did not want to be identified. ‘Cisco cannot get the memory chips to deliver, and Supermicro has memory availability. This should ease the pressure we have been dealing with on UCS availability.’

Partners are hopeful a new partnership that opens the door for Cisco to offer Supermicro liquid- and air-cooled systems as part of its AI infrastructure portfolio will provide a much-needed alternative in the wake of shipment delays plaguing Cisco’s own Unified Computing System (UCS) servers, Cisco partners told CRN.

“Cisco cannot deliver UCS servers,” said a top executive for a CRN Solution Provider 500 Cisco partner, who did not want to be identified. “Cisco cannot get the memory chips to deliver, and Supermicro has memory availability. This should ease the pressure we have been dealing with on UCS availability.”

The sales executive said it is currently six to nine months to get a UCS server in the hands of a customer depending on the server or configuration.

The Solution Provider 500 sales executive said he is interested in getting further details on the compensation and technology capabilities of the Supermicro offering compared with a UCS server.

[Related: Cisco Execs To Partners: Cloud Control, AI Security Push Create New Monetization Openings]

Cisco said it intends to begin offering Supermicro compute offerings as part of the Secure AI Factory with Nvidia beginning in October 2026.

Supermicro shares were up 9 percent, or 98 cents per share, to $12.35 (correction up 9 percent or $3 to $38.40) in midday trading in the wake of the announcement.

Cisco shares, meanwhile, were up 1 percent, or 70 cents per share, to $110.93 in mid-day trading.

Supermicro declined to comment on the deal with Cisco.

Cisco did not make an executive available to comment at press time.

A Cisco spokesperson, however, did tell CRN that this was the first time Cisco and Supermicro had signed a strategic partnership agreement.

Furthermore, in a question-and-answer document provided by Cisco, under the heading “How does this architecture address infrastructure supply chain constraints?” the response was: **“**Cisco’s global supply chain scale for AI networking systems, combined with Supermicro’s manufacturing and global supply chain scale for rack-scale AI systems and dense GPU servers, enables timely delivery of the infrastructure globally. This strength de-risks availability at a time when demand for GPUs, memory, CPUs, and SSDs is putting pressure on how quickly AI rack-scale systems can be built and shipped.”

The CEO of another CRN Solution Provider 500 Cisco partner, who did not want to be identified, said the ability to provide Supermicro servers is a big boost to partners that cannot get Cisco UCS servers.

“Obviously anything Cisco can do to provide additional server inventory so that they are more competitive in that segment is a good thing,” he said. “The big winner here is Supermicro. This gives them another channel for their servers. At the end of the day, Cisco does not have a full portfolio of rack-scale AI servers. This partnership fills in a gap in their portfolio. The question is: When do I pick UCS and when do I pick Supermicro?”

The CEO said Cisco UCS is facing intense competitive pressure because Cisco lacks the memory supply chain capabilities of larger competitors including Dell Technologies, HPE and Supermicro.

“The Cisco UCS market is composed of customers that have a Cisco UCS installed base,” the executive said. “In every other scenario they are looking at Dell, HPE, Supermicro and white label.”

The deals comes with Supermicro’s worldwide server revenue soaring 129 percent to $9.3 billion, with 7.6 percent market share, in the first calendar quarter of 2026, according to market researcher IDC’s Worldwide Quarterly Server Tracker*.*

Cisco, meanwhile, which reported double-digit growth for its compute business in the most recent quarter, does not show up in the top five rankings of IDC’s Worldwide Quarterly Server Tracker for the first calendar quarter of 2026.

Cisco said the deal with Supermicro expands its Secure AI Factory with Nvidia partnership.

The expanded Cisco Secure AI Factory with Nvidia offers Nvidia Cloud Partner-compliant solutions for neocloud and sovereign cloud customers, said Cisco.

The CEO for a top East Coast Cisco partner, who did not want to be identified, said the Supermicro partnership solves the supply chain issue with Cisco UCS.

“Cisco is supply constrained with UCS,” he said. “They realize they are not going to be able to get UCS in all data centers where AI workloads are running because of the UCS supply constraints so they are making sure that Cisco stays in every data center as the networking layer for AI connectivity. Cisco realizes UCS is in a no-win proposition at this point so they are focusing on the network layer.”

As to what “supply chain, Return Material Authorization (RMA), and support options are available” for partners, Cisco said in its question-and-answer document: “For Cisco products, its world-renowned supply chain offers diversity across build, stock, ship, and support. Customers can choose from a range of RMA options, including next-business day and 24x7x4, along with return-to-factory (RTF) service and warranty coverage. Supermicro's manufacturing scale, supply chain, and RMA options for their products give organizations the confidence that the compute they need will be delivered and supported on their timeline. Cisco manages L0 and L1 ticket triage for incoming requests, and routes to Supermicro as needed. Supermicro provides support for their products, ensuring coordinated resolution across the full stack.”

https://www.crn.com/news/data-center/2026/partners-hope-cisco-supermicro-deal-will-fill-gap-left-by-cisco-ucs-server-shipment-delays

BUSINESS WIRE 9:05 AM ET 8/20/2026

SAN JOSE, Calif.--(BUSINESS WIRE)-- Super Micro Computer, Inc.(SMCI) (“Supermicro” or the “Company”) today announced the completion of the internal investigation led by the Company’s independent members of the Board of Directors regarding the March 2026 indictment of three individuals who were associated with the Company at that time.

As previously disclosed, Supermicro was informed on March 19, 2026 that two employees and a contractor were indicted in connection with an alleged conspiracy to commit export-control violations. Supermicro was not named as a defendant in the indictment and is not accused of any wrongdoing. The Company took swift action, and the three individuals no longer have any relationship with Supermicro.

The investigation was led by Scott Angel, the Company’s Lead Independent Director, and Tally Liu, Chair of the Board’s Audit Committee, and was conducted by Munger, Tolles & Olson LLP, which engaged AlixPartners, LLP, as an independent forensic accounting consultant (collectively, the “Independent Advisors”). The results of the investigation were reported to the independent members of the Board and to the entire Board.

The investigation team reviewed the customer transactions that were the subject of the federal indictment, as well as transactions with a selection of other customers who bought restricted products, and did not find any evidence that any current member of senior management had knowledge of the alleged diversion scheme or of any actual diversion of restricted products by the Company. Nor did the investigation find that the Company directly sold export-controlled products to known restricted parties or locations. It also did not find any evidence that the Company’s previously issued financial statements could not be relied upon based on the potential diversion of restricted products. The Company developed and maintained its export compliance program as its sales of restricted products increased during the period under review. The Company’s compliance personnel have acted in good faith, with the support of management, to mitigate the risk of the Company’s products subject to export controls being diverted to restricted parties or locations.

In connection with the investigation, the Company took several personnel actions with respect to employees within its sales, technical support and business development functions, including terminations, for failure to follow Company policies or the Company’s code of conduct.

With the assistance of the Independent Advisors, the independent directors also made recommendations to further enhance the Company’s export compliance program. The Board has adopted those recommendations in full. The Company has already implemented certain recommendations as a result of an internal review overseen by the General Counsel and the Chief Compliance Officer. The independent directors will oversee implementation of the remaining recommendations.

“We are pleased to report the conclusion of this independent investigation,” said Mr. Angel. “The independent directors support the actions the Company has already taken to bolster its internal policies and procedures, as well as the additional enhancements that will be implemented.”

Supermicro will continue working to combat the industry-wide challenge of diversion and remain committed to upholding the highest standards of compliance. In addition, the Company continues to cooperate with relevant government authorities in connection with their ongoing investigations.

About Super Micro Computer, Inc.(SMCI)

Supermicro is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the U.S., Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.(SMCI) All other brands, names, and trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260820294441/en/

Palantir was the the worst pain point for Shorts, but SMCI came in as number 3 with Shorts losing an estimated $1.3 Billion on paper. SMCI squeeze score is listed at 100, the max level.

Short Sellers Are Losing Big on Palantir — Here's the Data

BENZINGA 12:30 PM ET 8/19/2026

Palantir Technologies Inc. (PLTR) has become the single biggest pain point for short sellers in a market rally that is squeezing bears across the board, according to new data from S3 Partners. 

The firm tracks a basket of stocks that score 70 or higher on its 0-100 squeeze scale, meaning conditions are ripe for shorts to get forced out of their positions. Twenty-four names currently qualify for that basket, and the cohort has climbed 13.4% month-to-date, pressuring short sellers across the board.

Palantir’s Outlier Position

Short interest in Palantir(PLTR) now totals $12 billion. That’s the largest dollar short in the basket and well above its $3.37 billion average. The stock is also the group’s biggest gainer, up 41.4% month-to-date. It carries the largest mark-to-market loss for shorts at $5 billion. 

Read Also: Moderna's Cancer Vaccine Win Is Merck's Story Too

Benzinga’s short-interest tracker shows bets against Palantir(PLTR) have generally kept growing even as the stock climbs, adding to those unrealized losses. Yet the position covers just 3% of float, leaving the stock with the lowest crowded score in the basket at 32.5. 

Few short sellers are involved, but those involved picked the wrong side.

Mark-To-Market Losses Mount

Recent mark-to-market losses across the basket total roughly $15 billion, and close to two-thirds of that sits in just three names. Palantir(PLTR) accounts for $5 billion, followed by Lumentum Holdings Inc.(LITE) at $3.1 billion and Super Micro Computer Inc.(SMCI) at $1.3 billion. 

All three are also the basket’s biggest movers, each up more than 34%.

The Squeeze Score

S3 Partners builds its squeeze score on top of a separate crowded score, which grades how tightly packed a short position is using short-dollar size, stock loan liquidity, trading volume and short interest. The squeeze score then layers on rising stock-borrow costs and mark-to-market losses, since those factors typically force short sellers to cover.

Palantir’s pain fits a broader pattern across the basket, where the average squeeze score now sits at 80.8. 

Fox Corp. (FOXA) , Workday Inc.(WDAY) and Super Micro all hit the maximum reading of 100. 

Leon Gross , S3 Partners’ director of research, summed up the dynamic: a rising market acts like the tide, lifting all boats — and every squeeze score with them.

The Most Crowded Shorts

Charter Communications Inc. (CHTR) and Fox carry the heaviest crowding scores, at 85 and 80, followed by **EchoStar Corp.(ECHO)**and **Skyworks Solutions Inc.(SWKS)**at 77.5 each, against a 62.0 average. 

Benzinga’s tracking shows Charter Communications’ short interest at 50.40% of its float, the heaviest in the basket.

Cash flow projections can vary greatly depending on the initial assumptions, but the path chosen gives Charles Liang the best chance of achieving his $110 stock price Performance Award Target. I've constructed an FY27 framework to compare against actual performance as the year unfolds.

Parabolic growth scenario after dilutive financing (economy of scale, best leverage from robotics and automation, potential for re-rating, and most importantly fastest Time to Online (TTO) :

Scenario	Revenue	GM	Net Income	EPS	Fair Value (7.8×)	Re-rated (12×)	Re-rated (15×)
Bear	$65B	13%	$5.53B	$8.01	$63/share	$96/share	$120/share
Base	$72B	15%	$7.56B	$10.96	$86/share	$131/share	$164/share
Bull	$80B	17%	$10.00B	$14.49	$114/share	$174/share	$217/share

Strong growth scenario without dilutive financing (path not chosen):

Scenario	Revenue	GM	Net Margin	Net Income	EBITDA/share	Fair Value/share
Bear	$50B	11%	6.5%	$3.25B	$6.33	$45–50/share
Base	$55B	12%	7.5%	$4.13B	$7.67	$55–60/share
Bull	$60B	13%	8.5%	$5.10B	$9.00	$65–70/share

Supermicro announces Fiscal Year 2026 Q4 financial results.

Highlights:
▸Net sales of $11.1 billion versus $10.2 billion in Q3'26 and $5.8 billion in Q4'25.
▸Gross margin of 17.5% versus 9.9% in Q3'26 and 9.5% in Q4'25.
▸Net income of $1,178 million versus $483 million in Q3'26 and $195 million in Q4'25.

"Our Total AI/IT Solutions strategy continues to deliver strong results, we added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027," said Charles Liang Founder, President and CEO of Supermicro. "As demand accelerates, we are improving profitability through a richer enterprise customer mix and broader adoption of our optimized Data Center Building Block Solutions® (DCBBS) architecture. Combined with continued investment in technology leadership, manufacturing scale, and global compliance, we are enabling customers to deploy AI infrastructure faster and more efficiently."

Thanks to our customers, partners, and the Supermicro team for making this quarter an extraordinary success!

I expected the DCBBS margin contribution but the Enterprise strength was a nice surprise. They've strengthened the Sales organization to help support and grow the Enterprise market.

CHENNAI, Aug 13 (Reuters) - India's Tamil Nadu state said it signed agreements worth 150.5 billion rupees ($1.58 billion) for 16 new projects by overseas investors, including France's Saint-Gobain and U.S. server maker Super Micro Computer(SMCI), as part of a broader investment push...

https://www.reuters.com/world/india/indias-tamil-nadu-sign-pacts-158-billion-new-projects-by-overseas-firms-source-2026-08-13/

SMCI has an earlier Sovereign AI project win in India:

https://investors.gorilla-technology.com/gorilla-technology-announces-2-billion-ai-infrastructure-deal-in-india-with-supermicro-expanding-strategic-collaboration-across-asia-pacific/

Vik Malyala, CBO was in India earlier in the year developing the SMCI Sovereign AI India strategy:

https://www.linkedin.com/posts/malyala_dcbbs-indiaai-aiinfrastructure-activity-7431183182047338497-gw-o/

Jensen Huang just dropped a $500 Billion dollar pebble into the funding pool and the ripples will potentially amplify 10x+ into trillions of AI infrastructure spend.

https://www.cnbc.com/2026/08/10/cnbc-exclusive-transcript-cnbcs-becky-quick-speaks-with-nvidias-jensen-huang-wall-street-leaders-on-500b-ai-infrastructure-push-on-closing-bell-overtime-today.html

Charles Liang saw this coming and has positioned SMCI to grow exponentially with the expected resurgence of AI infrastructure funding. Elon Musk saw it too, calling AI a supersonic tsunami. The funding tsunami has been triggered.

SMCI’s $60B Q4 orders, Dell downgrade, and SpaceX synergies

Failsafe Coolant Reveal (June 1)
Liang’s COMPUTEX keynote introduced SMCI’s proprietary Failsafe non‑conductive coolant. This wasn’t a minor product update — it expanded the DLC‑2 moat in a way analysts still haven’t priced in. Leak anxiety is real in liquid‑cooled deployments; Paul Mah’s LinkedIn post about coolant leaks wiping out entire racks and the cleanup aftermath shows why. SMCI wouldn’t likely announce a breakthrough coolant like this unless customers under NDA, NVIDIA and AMD had already run long test cycles validating materials compatibility, electrical behavior, thermal stability, and long‑duration reliability. That kind of testing happens quietly over months, not days.

$39B Orders Announced (June)
Right after the coolant reveal, SMCI disclosed $39B in new orders and dilutive financing. The dilution dominated the news cycle, but strong demand visible to Charles Liang has been building under NDA.

Q4 Intake Clarified at $60B+ (July)
In July, SMCI clarified that the total Q4 intake was $60B+. The June number was only part of the quarter. One quarter’s orders exceeded Dell’s entire $43B AI backlog. That’s when it became obvious the competitive landscape had shifted.

GF Securities Reacts (August)
GF Securities had already upgraded SMCI in May (PT $48), before any of these numbers were public. After SMCI’s $39B and $60B disclosures, GF downgraded Dell in August, citing server share pressure.

Early August: DataVolt Says NEOM Oxagon Will Break Ground Within Months
In early August, DataVolt said the 1.5GW AI data‑center campus at NEOM Oxagon is expected to break ground “within the next two to three months.” This matters for SMCI because sovereign AI customers don’t just buy racks; they buy full‑stack consulting, hardened facility design, cooling architecture, and integration services. These projects involve high‑margin engineering work: designing power centers, hardened rooms, liquid‑cooling layouts, and secure compute zones. Oxagon is explicitly planned as a net‑zero, high‑density AI campus with advanced cooling and energy‑efficient architectures. That’s exactly the kind of environment where SMCI’s DLC‑2 coolant, rack‑level integration, and “AI factory” model shine. As more sovereign AI customers follow Saudi Arabia’s lead, SMCI’s consulting and hardened‑facility revenue becomes a meaningful margin lever.

SMCI’s Long Term Growth Strategy
Liang isn’t a typical CEO. He’s a founder, major shareholder, takes a $1 salary, and has long‑term performance incentives ($110 PT). When he said in May that SMCI could grow with existing financing but would need more capital if revenue doubled, he likely already had visibility into large projects under NDA. The financing move fits the parabolic‑growth playbook: take dilution early to expand manufacturing capacity, then shift toward debt once EBITDA and backlog stabilize.

SpaceX/xAI Compute Economics
SpaceX/xAI recently said their compute deployments have less than one‑year payback and that they’re on track for $100B annualized revenue. When compute economics look like that, the company offering the best AI Factory TTO grows parabolically. Charles Liang is excited to work with SpaceX/xAI and has talked about future collaboration on TeraFab and Space based compute.

Bear Talking Points
SMCI already said Financials remediation is ongoing, and will likely run into FY2027 given the record setting revenue growth. An adverse opinion on internal controls doesn’t mean the financials are wrong — it means the systems need modernization and enhancement to match the scale of the business. That’s normal for companies growing faster than their accounting infrastructure. DOJ rumor‑based fearmongering pops up every quarter and has never been backed by any filing, disclosure, or action against SMCI.

What August 11 Earnings Will Clarify
FY2027 guidance will show how durable this demand cycle is. But the combination of SMCI’s $60B Q4 orders, GF’s upgrade SMCI/downgrade Dell sequence, the June 1 coolant reveal, SpaceX/xAI compute economics, and now DataVolt’s early‑August confirmation that NEOM Oxagon is moving into construction — all point toward structural demand rather than a temporary spike.

DataVolt put out an update saying the NEOM Oxagon 1.5GW AI campus is expected to break ground in the next couple of months.

https://www.agbi.com/tech/2026/08/neom-to-start-constructing-oxagon-ai-data-centre-in-months/

In hindsight, announcing the DataVolt partnership 15 months ago allowed fear, uncertainty and doubt to grow after the initial positive response.

https://data-volt.com/media/breaking-news/datavolt-announces-landmark-deal-with-supermicro-to-accelerate-adoption-of-rack-scale-total-liquid-cooling-it-solutions-for-future-ready-ai-data-centers/

Investors would welcome an update from SMCI. The AI Factory architect doing the design consulting work for these Giga Watt Sovereign AI Factories would be receiving substantial high margin fees from the concept stage right up to final implementation.

What if the $20+ Billion SMCI DataVolt partnership announcement were made now this week instead of 15 months ago?

SpaceX/xAI earnings call

SpaceX CFO Says Current Economics Have Translated Into A Less Than One-Year Payback On Our New Capital Deployments For Compute; Sees $100B Annualized Revenue Run Rate By End Of This Year

With these numbers, SMCI should consider spinning off a Neo-Cloud subsidiary.

The facilities will support a full range of operations, including advanced system design, domestic manufacturing, testing, service, and global distribution of the company’s Data Center Building Block Solutions ® (DCBBS) for AI infrastructure. Expect productivity, quality and margin gains from state of the art robotics and automation used in manufacturing and testing.

This physical footprint is the ultimate operational counterweight to the market's current fear, uncertainty and doubt loop. While armchair critics focus on short-term regulatory timelines, SMCI has successfully built an infrastructure moat that competitors cannot easily copy.

Yesterday, Vertiv earnings reported weakness in the EMEA region. SMCI is reporting strength in the EMEA region and has strategically located support resources:

The Netherlands (The EMEA Gateway)

• The Scale: Strategically positioned European tech hub.
• The Operational Focus: Handles localized system integration, logistics, customization, and deployment services for European cloud providers and Middle Eastern sovereign AI data centers.

By locking down millions of square feet of live factory space and backing it with up to 6000 racks per month (up to 2000-3000 liquid cooled and advanced liquid cool racks) of worldwide delivery capacity, the physical engine is fully primed. They possess the floor space, the active power connections, and the geographic distribution required to turn their $100 billion visible pipeline into revenue—mathematically clearing the path toward the $110 long-term CEO share price award target.