Is Super Micro Computer Stock a Buy, Sell, or Hold for June 2025?
In mid-May, Super Micro Computer (SMCI) unveiled its Data Center Building Block Solutions (DCBBS). The turnkey system is engineered to accelerate the establishment of liquid-cooled AI data centers while optimizing cost-efficiency.
Set for deployment within three months, the solution brings together precision manufacturing, advanced management software, full-spectrum on-site services, and global reach. According to CEO Charles Liang, DCBBS goes the whole nine yards, from mapping out data center layouts to configuring network topologies and power backups.
It is crafted to simplify operations and speed up AI infrastructure development. Customers could slash power usage by up to 40%, shrink data center footprint by 60%, and cut water use by 40%, driving a 20% drop in total cost of ownership.
With this catalyst in mind, how should investors approach SMCI stock for June 2025?
About Super Micro Stock
San Jose, California-based Super Micro Computer (SMCI) has carved a solid niche in high-performance server and storage solutions, all anchored in modular and open architecture. With a market cap of $25 billion, the firm offers everything from rack mount and blade server systems to essential components that form the digital bedrock of today's enterprises.
Super Micro shares have had a volatile trajectory. They are up more than 1,300% over the past five years, but have been halved over the past 52 weeks. The last month has been slightly more positive with a gain of 14%.
Super Micro Misses on Q3 Earnings
Super Micro's fiscal Q3 2025 painted a somber picture on May 6, as the firm came up short of Wall Street's expectations. Revenue for the quarter grew 19.5% year over year to $4.6 billion, well below analysts' consensus estimate of $5.4 billion.
Non-GAAP net income plummeted by more than 50% to $194 million, with non-GAAP EPS more than halved to $0.31, missing the $0.50 projection by a wide margin.
This disappointing result, however, did not catch many off guard. Late April had already seen Supermicro send up warning flares with its preliminary report. Much of the shortfall was chalked up to ' delayed customer-platform decisions, ' which, according to CEO Charles Liang, are not lost opportunities but merely postponed ones.
He emphasized that many of these commitments are set to materialize in the June and September quarters, hinting that the company's long-term trajectory remains intact.
Looking ahead, the company has set its Q4 revenue guidance between $5.60 billion and $6.40 billion, with non-GAAP EPS expected to range from $0.40 to $0.50. For fiscal 2025, it now anticipates revenue between $21.80 billion and $22.60 billion.
In May, Supermicro also sealed a $20 billion multi-year deal with DataVolt to deploy AI server systems across Saudi Arabia and the U.S. The deal is monumental. Technology upgrades, including its direct liquid cooling platform, show that Supermicro is not resting on its laurels.
Although fiscal Q4 2025 EPS is expected to fall 36.4% to $0.35 and full-year 2025 EPS by 13.9% to $1.73, analysts see a rebound next year, forecasting a 36.4% jump to $2.36 in fiscal 2026.
What Do Analysts Expect for Super Micro Stock?
Wall Street's verdict on the stock paints a nuanced picture, with the consensus settling at a 'Moderate Buy.' Out of 15 analysts, four are ringing the bell with a 'Strong Buy.' Meanwhile, three analysts lean toward a 'Moderate Buy.' On the sidelines, six prefer to stay put with a 'Hold,' while only two caution with a 'Strong Sell' stance.
The Street-high target of $100 signals a possible surge of 143% from current levels.
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