--- title: "Is Super Micro Computer Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/super-micro-computer-stock publisher: HalalWallet license: CC BY 4.0 verdict: not_halal verdict_label: Not Halal entity_type: stock ticker: SMCI exchange: NASDAQ last_reviewed: 2026-06-15 data_as_of: 2026-03-31 standards_disagree: true authorities_with_position: 3 authority_agreement: split --- # Is Super Micro Computer Stock Halal? **Authority consensus:** Halal screening authorities disagree on Super Micro Computer, Inc.: not halal (HalalWallet (AAOIFI)); halal (Wahed (HLAL ETF), SP Funds (SPUS ETF)). **Verdict: Not Halal** (Not permissible) Super Micro Computer, Inc. (SMCI) does not pass Shariah screening: interest-bearing debt / market cap is 36.9% against the < 30% limit (data as of 2026-03-31). It is independently held by Shariah-screened ETFs SPUS and HLAL, confirming it passes professional screens. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence Super Micro's core business is permissible on its face: it designs and assembles servers, storage systems, and the GPU-dense platforms that power AI data centers. With FY2025 net sales of $21,972 million driven by the AI infrastructure boom, there is no prohibited product category and no interest-based lending arm, so Shariah analysis comes down to the balance sheet. The item to watch is debt. At June 30, 2025 the company carried about $4,645 million of convertible notes (plus smaller term loans and credit lines), which are interest-bearing instruments that count toward the debt-ratio tests Shariah screens apply, partly offset by a sizable $5,170 million cash balance. Whether the company passes a leverage screen depends on how that debt is measured against assets or market value at a given date. There is also a non-Shariah caveat worth flagging for investors: Super Micro went through auditor turnover and delayed filings in 2024-2025, which is an accounting-quality and governance concern rather than a permissibility question, but it affects the reliability of the very numbers a screener relies on. On the professional evidence, Super Micro currently passes: it is held by both major US Shariah ETFs, appearing in SPUS (about 0.04% of the fund as of June 11, 2026) and in HLAL's SEC-filed schedule of investments (as of February 28, 2026). Inclusion in both funds, under two different index methodologies, is meaningful corroboration as of those dates. Given the volatility of this stock and its debt, a Muslim investor should still confirm the live status in a screener before buying. ## Business activity screen Result: Pass Super Micro Computer, Inc. designs and manufactures high-performance servers, storage systems, and data-center infrastructure, including GPU/AI server platforms. Per its FY2025 10-K (fiscal year ended June 30, 2025), net sales were $21,972 million (cost of sales $19,542 million). The company held $5,170 million of cash and cash equivalents at year-end. Super Micro's business, designing and building servers, storage, and AI/data-center hardware, is a permissible activity with no haram product lines and no interest-based lending operation. The principal financial-ratio item is the balance sheet: at June 30, 2025 the company had $4,645 million of convertible notes outstanding (plus small term loans and lines of credit), interest-bearing debt that screeners weigh against debt thresholds, partly offset by a large $5,170 million cash position. No material recurring financing/interest income line was separately verified for this brief (null). Separately (not a Shariah-screen factor per se but relevant context), Super Micro experienced auditor turnover and delayed SEC filings in 2024-2025; that is a governance/accounting-quality issue rather than an impermissible-activity issue. ## Financial ratio screen (AAOIFI) Data as of: 2026-03-31 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 36.9% | < 30% | Fail | | Cash + interest-bearing securities / market cap | 7.0% | < 30% | Pass | | Impermissible income / total revenue | 0.0% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest mainstream standard). | Standard | Debt | Cash & interest securities | Limit / basis | Result | |---|---|---|---|---| | AAOIFI (our standard) | 36.9% | 7.0% | < 30% of market cap | Fail | | Dow Jones Islamic / S&P Shariah threshold | 36.9% | 7.0% | < 33% of market cap | Fail | | MSCI Islamic / FTSE Yasaar basis | 28.8% | 5.5% | < 33.33% of total assets | Pass | HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/)) - **Wahed FTSE USA Shariah ETF (HLAL)**: Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund. ([source](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)) ## Sources - SMCI latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Super%20Micro%20Computer%2C%20Inc.&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Super Micro FY2025 10-K statements of operations (net sales) (SEC EDGAR XBRL) (https://www.sec.gov/Archives/edgar/data/1375365/000137536525000027/R6.htm) - Super Micro FY2025 10-K consolidated balance sheets (cash, convertible notes) (SEC EDGAR XBRL) (https://www.sec.gov/Archives/edgar/data/1375365/000137536525000027/R3.htm) - Super Micro FY2025 10-K (SEC EDGAR primary document) (https://www.sec.gov/Archives/edgar/data/1375365/000137536525000027/smci-20250630.htm) - SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/) - HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm) ## Frequently asked questions ### Is Super Micro Computer, Inc. (SMCI) stock halal? No. Super Micro Computer, Inc. fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons. ### Does Super Micro Computer, Inc. pass the AAOIFI financial ratio screen? As of 2026-03-31: interest-bearing debt is 36.9% of market cap (limit < 30%); cash plus interest-bearing securities is 7.0% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is Super Micro Computer, Inc. held in halal ETFs like SPUS or HLAL? Yes — as of our last check, Super Micro Computer, Inc. is held by SPUS and HLAL. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below. ## Related verdicts - [Is Palantir Technologies Stock Halal?](https://www.halalwallet.ca/is-it-halal/palantir-technologies-stock.md) — Not Halal - [Is Airbnb Stock Halal?](https://www.halalwallet.ca/is-it-halal/airbnb-stock.md) — Not Halal - [Is APA Stock Halal?](https://www.halalwallet.ca/is-it-halal/apa-stock.md) — Not Halal - [Is Block Stock Halal?](https://www.halalwallet.ca/is-it-halal/block-stock.md) — Not Halal - [Is Bunge Global Stock Halal?](https://www.halalwallet.ca/is-it-halal/bunge-global-stock.md) — Not Halal - [Is Centene Stock Halal?](https://www.halalwallet.ca/is-it-halal/centene-stock.md) — Not Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md