Hyperscaler Spending Could Supercharge Super Micro Computer Stock

Key Points

• The billions in investment from the hyperscaler names will likely serve as another tailwind for Super Micro Computer's future.
• After an earnings decline, the numbers suggest that the price is undervalued.
• Institutional buyers bought that dip, and EPS forecasts shoot for more upside potential.

One thing's for sure: the tech industry is booming, with five major players—Amazon, Microsoft, Alphabet, Meta, and Oracle—investing heavily to make their ambitious plans a reality. The US has seen over $600 billion invested in new AI infrastructure development, earning these companies the nickname "hyperscalers.”

This creates a new opportunity for a lateral move.

While most investors will focus directly on the companies doing the spending, rightfully expecting further expansion in market share and financials as well, the best opportunities in the market are often found by looking one or two steps ahead. Investors should consider which companies or market sectors are likely to benefit from this increased spending.

One area that could be improved is data center efficiency. Most of this spending is going toward building chip and semiconductor factories along with data centers, and the current electricity grid setup falls short of delivering enough power to all this new demand.

This is exactly where shares of Super Micro Computer Inc. NASDAQ: SMCI come into play, taking on a vital role in this setup.

Short Sellers Signal a Potential Bottoming

Most bearish traders view Super Micro Computer through the same lens as they did a year ago, a period marked by significant negative media coverage due to delayed financial reports, which raised concerns about the transparency of earnings and booked revenue.

However, over the past few quarters, a lot of those doubts have been erased, as Super Micro Computer management has enhanced its financial and auditing teams to avoid a late filing in the future, and also showing signs of increased demand and expansion, which is where looking at the company’s short interest comes in as a useful gauge.

Over the past month, 2.6% of Super Micro Computer’s short interest declined as a potential sign of initial bearish capitulation. More importantly, this reduction came after the stock sold off by 14% in one month following their quarterly earnings report.

When investors take a deeper look at those financials, however, they will find that the market’s reaction may not have been fully justified. That could be why short sellers may be closing down some positions before the rest of the market realizes this fact and starts to go on a dip-buying spree.

Speaking of a dip-buying spree, some in the “smart money” corner of the market have already taken it upon themselves to seize this opportunity ahead of time. Investors can see this through the new 16.5% boost in holdings from Disciplined Growth Investors Inc. as of mid-August 2025 (after the earnings sell-off).

After this boost, the group’s net position rose to a high of $476.9 million today. What really matters, and what investors should take away from this, is that these savvy buyers may actually be seeing the truth in the financials, realizing that the stock should not have sold off that much in the first place.

What Investors Should Look Up to Next

Back to the fundamental story, investors could remain focused on the broader narrative at play for Super Micro Computer and its future. That story is centered around the hyperscaler spending that’s going on right now, both in part of the companies at the helm of this project and the government as well.

Super Micro Computer’s leading liquid-cooling systems are expected to see higher demand as artificial intelligence infrastructure is onshored. Their implementation will likely mitigate the effects of electricity supply constraints that many investors are unaware of.

Perhaps some Wall Street analysts have taken this future into account already, just like those institutional buyers that were mentioned. Current earnings per share (EPS) forecasts suggest Super Micro Computer could report 74 cents in earnings for the fourth quarter of 2025.

Compared to today’s reported 41 cents in EPS, a near doubling in profitability should be enough evidence to show investors that Wall Street players may be thinking in terms of this future demand scenario. More than that, as most investors know, where EPS growth goes, the stock price action follows, giving them a well-defined window of opportunity in Super Micro Computer stock for the coming months.