SMCI vs. TTMI: Which AI Infrastructure Stock is a Better Buy?

Super Micro Computer SMCI and TTM Technologies TTMI are strongly placed to capitalize on the rapidly expanding AI infrastructure market. While SMCI provides servers, storage, cooling and modular data center components to run AI workloads, TTMI manufactures printed circuit boards (PCB) on which AI chips connect.

Considering the unprecedented CAGR of 30.6% of the AI market from 2025 to 2032, per a report by MarketsAndMarkets, both the companies are likely to capitalize on the emerging trends. Given this scenario, let's closely examine the fundamentals of the two companies, so investors can make an informed bet.

The Case for SMCI Stock

Super Micro Computer is well-positioned to benefit from the growing demand for AI infrastructure. The company is often the first to market with the latest AI servers, including systems built on NVIDIA and AMD’s latest AI chips. The most recent development for SMCI is the launch of multiple advanced computing systems for AI factories, enterprise data centers and edge AI with NVIDIA RTX PRO Blackwell GPUs.

SMCI’s upcoming facilities in the United States, Taiwan, Malaysia, the Netherlands and the Middle East are explicitly designed for rack-level production, not just server assembly. SMCI has diversified its offerings by entering into client, edge and consumer AI markets. The company stands to benefit from its enterprise-scale expertise in AI-optimized servers, GPUs and energy-efficient system design to deliver powerful yet compact solutions for PCs, edge AI and embedded applications.

SMCI has launched Super AI Station, Supermicro SYS-542T-2R, Supermicro AI PC, Supermicro Edge AI Systems and Supermicro's Fanless Compact Edge System, challenging the existing players in this market for client, edge and consumer AI markets. With this business model at play, the company projects to achieve $40 billion in revenues in fiscal 2026. However, SMCI also faces some challenges.

SMCI’s revenue streams are heavily dependent on the AI industry, with AI GPU platforms contributing more than 90% of revenues. This exposes SMCI to the boom and bust cycles of a single industry. Since SMCI works in a capex-heavy industry, its inventory has also surged to $10.6 billion in the second quarter of fiscal 2026 from $5.7 billion in the first quarter of fiscal 2026 and $4.7 billion at the end of fiscal 2025.

SMCI stock also plunged recently, relating to reports of potential export-control scrutiny by U.S. authorities. The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 earnings implies a year-over-year increase of approximately 7.8%. Estimates for fiscal 2026 have been revised upward in the past 60 days.

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The Case for TTMI Stock

TTMI is well-positioned to capitalize on the accelerating infrastructure buildout driven by generative AI. The rapid expansion of large language models and AI accelerators is driving sustained demand for increasingly complex printed circuit boards, as data center architectures require denser, higher-layer count interconnect solutions to support growing compute workloads.

This demand was evident in the fourth quarter, as the combined data center computing and networking end market grew to 36% of total revenues, with data center computing alone posting 57% year-over-year growth. TTMI's manufacturing processes are engineered to handle the precision and complexity that next-generation AI hardware demands, serving as a meaningful differentiator.

The company engages early with customers on product development, aligning capacity with evolving design requirements ahead of production ramp. Capacity additions at its Dongguan and Guangzhou sites are on schedule, and the Syracuse Diamond facility is expected to deliver first revenues in the second half of 2026. Besides the AI infrastructure market, TTMI also provides solutions for aerospace and defense, making it well diversified.

Given these tailwinds, TTMI is expected to show a double-digit growth rate in both top and bottom lines. The Zacks Consensus Estimate for TTMI’s 2026 and 2027 revenues shows a growth rate of 16.5% and 17.4%, respectively. The Zacks Consensus Estimate for TTMI’s 2026 and 2027 earnings shows a growth rate of 31.7% and 43%, respectively. The earnings estimate for 2026 has been revised upward in the past 60 days.

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Stock Price Performance and Valuation of SMCI & TTMI

Shares of SMCI have plunged 36.1% in the past 12 months, while TTMI has gained 390.3%.

12-Month Performance Chart

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SMCI is trading at a forward 12-month Price to Sales ratio of 0.29X, which is lower than its median of 0.46X. TTMI is trading at a forward sales multiple of 3.16X, higher than its median of 2.35X.

Forward 12-Month (P/S) Valuation Chart

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Conclusion: SMCI vs TTMI Stock

While SMCI and TTMI are both benefiting from the AI infrastructure growth due to their expertise, SMCI faces inventory risk, dependency risk on the AI market and scrutiny from the U.S. authorities at present, making TTMI a safer bet among the two stocks.

TTMI carries a Zacks Rank #2 (Buy), while SMCI has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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