Analysts Adjust Price Targets for Super Micro Amid Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Should l Buy SMCI?
Source: stocktwits
- Price Target Adjustments: Tim Long of Barclays lowered Super Micro's price target from $43 to $38 while maintaining an 'Equal Weight' rating, noting that Q2 revenue more than doubled from the prior quarter, although gross margins tightened as expected.
- Strong Demand: Needham trimmed its price target from $51 to $40 but kept a 'Buy' rating, emphasizing that strong earnings stemmed from a major customer expanding its data center footprint, while Super Micro's DCBBS solutions gained traction with key clients.
- Market Sentiment Shift: Super Micro's stock traded over 12% higher on Wednesday morning, with retail sentiment on Stocktwits improving from 'bullish' to 'extremely bullish', and message volume shifting from 'high' to 'extremely high' within 24 hours.
- Competitive Pressures: Mizuho analyst Vijay Rakesh raised the price target slightly to $33 from $31 while maintaining a 'Neutral' rating, citing robust results but persistent challenges from competition and margin pressures, reflecting the dual forces affecting the AI and data center sectors.
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Analyst Views on SMCI
Wall Street analysts forecast SMCI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMCI is 46.82 USD with a low forecast of 34.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
5 Buy
5 Hold
2 Sell
Hold
Current: 29.670
Low
34.00
Averages
46.82
High
63.00
Current: 29.670
Low
34.00
Averages
46.82
High
63.00
About SMCI
Super Micro Computer, Inc. provides application-optimized Total IT solutions. It delivers rack-scale solutions optimized for various workloads, including artificial intelligence and high-performance computing, where acceleration is critical. It produces a portfolio of server and storage solutions for enterprise data centers, cloud service providers and edge computing (5G Telco, Retail and embedded). Total IT Solutions include complete servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, server management and security software. It provides global support and services to help its customers install, upgrade and maintain their computing infrastructure, including liquid-cooling operations. It offers platforms in rackmount, blade, multi-node and embedded form factors, which support single, dual and multiprocessor architectures. Its key product lines include SuperBlade and MicroBlade, SuperStorage, Twin and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Product Popularity: The company's new Data Center Building Block Solutions (DCBBS) are gaining traction among AI-focused customers, as these modular systems integrate various tools including networking, storage, and cooling equipment, enhancing overall operational efficiency for clients.
- Margin Pressure: Despite a 17% increase in adjusted earnings per share to $0.69, Supermicro's adjusted gross margin fell to 6.4% from 11.9% a year ago, indicating pricing pressures faced when selling to larger tech companies.
- Optimistic Growth Outlook: Supermicro projects net sales of $12.3 billion for fiscal Q3 2026, with full-year sales expected to reach at least $40 billion, up from $22 billion in fiscal 2025, demonstrating strong market prospects in AI and IT infrastructure demand.
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- Strong Demand: Needham trimmed its price target from $51 to $40 but kept a 'Buy' rating, emphasizing that strong earnings stemmed from a major customer expanding its data center footprint, while Super Micro's DCBBS solutions gained traction with key clients.
- Market Sentiment Shift: Super Micro's stock traded over 12% higher on Wednesday morning, with retail sentiment on Stocktwits improving from 'bullish' to 'extremely bullish', and message volume shifting from 'high' to 'extremely high' within 24 hours.
- Competitive Pressures: Mizuho analyst Vijay Rakesh raised the price target slightly to $33 from $31 while maintaining a 'Neutral' rating, citing robust results but persistent challenges from competition and margin pressures, reflecting the dual forces affecting the AI and data center sectors.
See More
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- Revenue Surge: Super Micro Computer reported a staggering 123% year-over-year increase in net sales to $12.7 billion for its fiscal Q2 2026, highlighting its robust growth potential in the AI-driven market and solidifying its leadership in computing infrastructure.
- Product Popularity: The company's new Data Center Building Block Solutions (DCBBS) are gaining traction among AI-focused customers, as these modular systems integrate various tools including networking, storage, and cooling equipment, enhancing overall operational efficiency for clients.
- Margin Pressure: Despite a 17% increase in adjusted earnings per share to $0.69, Supermicro's adjusted gross margin fell to 6.4% from 11.9% a year ago, indicating pricing pressures faced when selling to larger tech companies.
- Optimistic Growth Outlook: Supermicro projects net sales of $12.3 billion for fiscal Q3 2026, with full-year sales expected to reach at least $40 billion, up from $22 billion in fiscal 2025, demonstrating strong market prospects in AI and IT infrastructure demand.
See More
U.S. Markets Closed Wednesday with Mixed Results as Super Micro Computer Outperformed and Boston Scientific Underperformed
- U.S. Stock Market Performance: Stock indexes in the U.S. closed mixed on Wednesday, indicating varied performance across different sectors.
- Index Movements: The S&P 500 rose by 0.53%, while the Dow Jones Industrial Average fell by 0.51%, and the Nasdaq Composite experienced a decline of 1.51%.
See More
US Stocks Waver Amid Mixed Earnings and Tech Rotation
- Market Fluctuations: The S&P 500 Index is up 0.08%, the Dow Jones Industrial Average is up 0.54%, while the Nasdaq 100 Index is down 0.56%, indicating the complexity of market sentiment amid mixed corporate earnings results.
- Divergent Corporate Performance: Super Micro Computer forecasts Q3 net sales of at least $12.3 billion, significantly above the $10.25 billion consensus, leading to a stock price increase of over 15%; conversely, Advanced Micro Devices' weak Q1 sales forecast results in a stock decline of over 13%, reflecting a reassessment of tech stocks.
- Labor Market Signals: The January ADP employment change rose by 22,000, below the expected 45,000, indicating weakness in the labor market that could influence future monetary policy decisions.
- Government Funding Plan: The funding package signed by President Trump extends funding for the Department of Homeland Security through February 13, while other departments are funded until September 30, alleviating concerns over a government shutdown and boosting investor confidence.
See More
Mixed US Stock Market with Pressure on Chip Stocks
- Market Divergence: The S&P 500 Index fell by 0.11% while the Dow Jones Industrial Average rose by 0.69%, and the Nasdaq 100 dropped by 1.05%, indicating a divergence in market sentiment, particularly with underperforming tech stocks potentially affecting investor confidence.
- Earnings Impact: Super Micro Computer forecasts Q3 net sales significantly above expectations, leading to a stock price increase of over 13%, while Advanced Micro Devices saw its stock drop more than 15% due to weak Q1 sales forecasts, reflecting a cautious market outlook on tech stocks.
- Mixed Economic Data: The January ADP employment change rose by 22,000, below the expected 45,000, while the ISM services index remained steady at 53.8, stronger than the anticipated decline to 53.5, highlighting the complexities of economic recovery that could influence future monetary policy.
- Mortgage Applications Decline: MBA mortgage applications fell by 8.9% for the week ending January 30, with the purchase mortgage sub-index down 14.4%, indicating weakened housing demand that may negatively impact the real estate market.
See More
Cirrus Logic Reports Strong Q3 Earnings, Shares Surge
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
See More
Analysts Adjust Price Targets for Super Micro Amid Revenue Growth
- Price Target Adjustments: Tim Long of Barclays lowered Super Micro's price target from $43 to $38 while maintaining an 'Equal Weight' rating, noting that Q2 revenue more than doubled from the prior quarter, although gross margins tightened as expected.
- Strong Demand: Needham trimmed its price target from $51 to $40 but kept a 'Buy' rating, emphasizing that strong earnings stemmed from a major customer expanding its data center footprint, while Super Micro's DCBBS solutions gained traction with key clients.
- Market Sentiment Shift: Super Micro's stock traded over 12% higher on Wednesday morning, with retail sentiment on Stocktwits improving from 'bullish' to 'extremely bullish', and message volume shifting from 'high' to 'extremely high' within 24 hours.
- Competitive Pressures: Mizuho analyst Vijay Rakesh raised the price target slightly to $33 from $31 while maintaining a 'Neutral' rating, citing robust results but persistent challenges from competition and margin pressures, reflecting the dual forces affecting the AI and data center sectors.
See More
