Super Micro Stock (SMCI) Jumps About 60% — Is This the Next Nvidia?
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AI Server Demand Is Heating Up
SMCI's fiscal 2024 revenue surged 110% year-over-year to $14.9 billion, driven by record demand for AI workloads. Its Q2 FY25 server and storage segment then grew another 19% year-over-year. This growth reflects widespread deployments of its hardware in data centers globally. The company continues to benefit from its close ties with Nvidia and other chipmakers, allowing it to quickly deliver custom AI server solutions. SMCI also said it expects demand to stay strong through the rest of the year as more customers adopt new GPU architectures.
SMCI Stock Movement and Analyst Updates
SMCI shares are up about 47% over the past three months, though still down roughly 46% from last year, weighed by trade tensions and tariff concerns. The stock also dropped 18% in April after the company lowered its Q3 revenue guidance, citing delayed customer orders ahead of Nvidia's next-gen chip rollout.
Still, analysts remain divided on the stock's future. Some see strong upside tied to AI infrastructure momentum, while others flag near-term risks.
Five-star Mizuho Securities analyst Vijay Rakesh raised his price target to $47 from $40 but reiterated his Hold rating, pointing to steady AI server demand and the recently announced $20 billion partnership with Saudi Arabia's DataVolt.
Meanwhile, Raymond James five-star analyst Simon Leopold initiated coverage with a Buy rating and a $41 target, noting SMCI captured 9% of the $145 billion AI platform market.
That said, other analysts, including Citi and Barclays, warn of margin pressure and demand fluctuations going ahead.
Is SMCI Stock a Buy?
Super Micro Computer stock has a consensus Hold rating among 12 Wall Street analysts. That rating is based on six Buy, five Hold, and one Sell recommendations issued in the last three months. The average SMCI price target of $41.42 implies 14.70% downside from current levels.
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