Super Micro Computer (SMCI) and Alphabet Inc. (GOOGL) are making significant strides in the rapidly growing AI data center market. SMCI reported a remarkable 123% revenue growth year-over-year for the third quarter of fiscal 2026, largely driven by AI GPU-related platforms, which accounted for over 80% of its total revenues. The company aims to enhance its production capacity to over 6,000 AI racks per month by the end of fiscal 2026.
Meanwhile, GOOGL continues to expand its vertically integrated AI ecosystem, servicing more than 120,000 enterprises, including major players like Airbus and Salesforce. The Zacks Consensus Estimate anticipates a 23% revenue growth for GOOGL in 2026, with earnings projected at $14.29 per share, up 32.2% year-over-year. SMCI is currently trading at a forward Price to Sales ratio of 0.43X, while GOOGL stands at 10.15X.
Both companies carry a Zacks Rank #3 (Hold). While SMCI is benefiting from the burgeoning AI infrastructure boom, Alphabet’s comprehensive control over the AI value chain positions it as a more resilient long-term investment.
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