Super Micro Computer (SMCI) Stock Surges Over 10% on Chip Sector Optimism

TLDR

• Super Micro Computer (SMCI) stock jumped 10.94% on Friday, closing at $32.64 per share.
• Taiwan Semiconductor Manufacturing Company announced plans to increase capital expenditures by 33-37% to $52-56 billion in 2026.
• TSMC reported fourth quarter net income growth of 35% to NT$505.7 billion and revenue increase of 20.5% to NT$1.046 trillion.
• Super Micro secured a new $2 billion revolving credit facility with JPMorgan and other lenders.
• The company announced new AI retail partnerships with Everseen, Kinetic Vision, and NVIDIA for edge-based intelligent retail solutions.

Super Micro Computer stock climbed 10.94% on Friday, ending the trading session at $32.64 per share. The rally came as positive news from Taiwan Semiconductor Manufacturing Company rippled through the artificial intelligence sector.

Super Micro Computer, Inc., SMCI

TSMC’s announcement of increased capital spending plans triggered buying across AI-related stocks. The semiconductor manufacturer said it would raise capital expenditures to between $52 billion and $56 billion for 2026. This represents a jump of 33% to 37% compared to last year’s $38 billion to $42 billion range.

The spending increase reflects strong demand for semiconductors from TSMC’s customers. Super Micro benefits from this trend due to its heavy reliance on Nvidia GPUs, which TSMC manufactures.

IREN Ltd. also saw gains on the same news, rising 11.43% during Friday’s session. Both companies have substantial exposure to Nvidia’s graphics processing units.

Strong TSMC Earnings Lift Sector Sentiment

TSMC’s fourth quarter financial results added fuel to the rally. The company posted net income of NT$505.7 billion, up 35% from NT$374.68 billion in the same period last year.

Net sales for the quarter reached NT$1.046 trillion. This marked a 20.5% increase from the previous year’s NT$868.46 billion.

The strong earnings performance from TSMC reinforced optimism about demand in the broader AI infrastructure market. Super Micro operates in this space as an AI server supplier.

New Credit Facility and Retail Partnerships

Super Micro recently secured a $2 billion revolving credit facility with JPMorgan and other lenders. The new credit line provides the company with balance sheet flexibility as it expands its AI infrastructure offerings.

In early January 2026, the company announced collaborations focused on AI-powered retail solutions. Partners include Everseen, Kinetic Vision, and NVIDIA.

These edge-based intelligent retail solutions target improvements in store operations and supply chain management. The partnerships expand Super Micro’s footprint in the retail sector.

Upcoming Earnings and Analyst Projections

Super Micro is scheduled to report second quarter fiscal year 2026 results in the last week of January. The timing is based on the company’s historical earnings release pattern.

Analysts project revenue could reach $48.2 billion by 2028 with earnings of $2.4 billion. This forecast assumes annual revenue growth of 29.9%.

Simply Wall St community members value SMCI between $47.24 and $82.39 per share. Current analysis suggests a fair value of $48.53, representing potential upside of 49% from Friday’s closing price.

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