SMCI vs. AVT: Which AI Infrastructure Stock is a Better Buy?
Super Micro Computer (SMCI) and Avnet (AVT) are AI infrastructure companies with different growth prospects. SMCI reported $39.1B in fiscal 2026 revenue, with AI solutions making up 60% of Q4 revenue, and expects $65B-$72B in fiscal 2027. AVT saw 49% YoY growth in its Electronic Components business, with data center and networking as key drivers. SMCI shares rose 41.9% YTD, while AVT surged 104.3%.
How this was made
The 30-second read
Why it matters
Provides a side‑by‑side assessment of growth prospects, margins, and valuation metrics to aid investment decisions.
Market read
Both firms are positioned to benefit from AI infrastructure demand, but differing profitability trends create distinct risk‑reward profiles.
What to watch
Potential supply‑chain constraints and macro‑economic slowdown could dampen AI spending for both firms.
Background
The article compares two AI‑infrastructure companies, SMCI and AVT, focusing on recent financial results and forward guidance.
Ticker impact
SMCI reported FY2026 revenue of $39.1B and $60B new orders, with guidance for FY2027 sales of $65B-$72B.
Potential modest upside if guidance is met, but risk of downside on margin concerns.
Guidance is bullish yet margins are expected to fall, creating uncertainty for traders.
AVT posted Q4 FY2026 component sales of $7.8B, up 49% YoY, and forecasts FY2027 earnings growth of 240%.
Likely upside pressure as investors price in strong earnings growth.
Higher earnings growth and margin expansion make AVT attractive relative to peers.
Market effects
Highlights continued demand for AI infrastructure and component distribution within the data‑center sector.
Both companies are U.S.-listed, affecting North American tech and semiconductor supply chains.
Reinforces broader AI‑related investment themes across global markets.
Counterpoint
SMCI's margin decline could outweigh revenue growth, making the stock overvalued despite top‑line strength.
Key entities
- CompanySuper Micro Computer
AI server and rack‑scale solutions provider (ticker SMCI).
- CompanyAvnet Inc.
Electronic component distributor serving AI and data‑center markets (ticker AVT).
