Does Super Micro Computer Stock (SMCI) Have More Room to Run?

Globe and Mail

28-05-2025

(SMCI) stock has rallied 36% so far in 2025. After a rollercoaster ride last year due to several negatives, including accusations related to accounting irregularities and delay in filing of financial statements, the stock has risen in 2025 due to improved investor sentiment for the AI server maker. Nonetheless, analysts are currently divided on SMCI stock, with the average price target indicating that the stock could be range-bound.
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Analysts Are Divided on SMCI Stock
SMCI Bulls are optimistic about its growth prospects amid the ongoing AI boom, given recent wins like the $20 billion partnership with DataVolt to develop hyperscale AI campuses in Saudi Arabia and the U.S. However, other analysts are concerned about the company's disappointing fiscal third-quarter performance and dismal guidance and a potential slowdown in AI spending due to macro pressures. Moreover, Super Micro didn't issue guidance for Fiscal 2026, citing tariff-related uncertainties.
Recently, Citi analyst Asiya Merchant reiterated a Hold rating on SMCI stock with a price target of $37. Reacting to the DataVolt agreement, the 5-star analyst said that the news is a positive read-through for the underlying demand momentum for SMCI and AI infrastructure hardware players that cater to the tier 2, neo cloud, GPU as a service cloud providers, and sovereign entities. That said, Merchant remains sidelined on SMCI stock due to rising competition.
Meanwhile, Raymond James analyst Simon Leopold initiated coverage of SMCI stock with a price target of $41. The 5-star analyst stated that SuperMicro has emerged as a 'market leader' in AI-optimized infrastructure. He highlighted that AI platforms now comprise nearly 70% of SMCI's topline, with the company also expanding its share of the branded AI server market. Leopold thinks that SMCI has positioned itself in a 'sweet spot' between the branded IT suppliers like Dell (DELL) and HP Enterprise (HPE), and contract manufacturers like Quanta. While tariffs and technology transitions, like Nvidia's (NVDA) Hopper to Blackwell processors, present risks over the intermediate term, Leopold believes that AI projects represent a long-term secular driver for SMCI.
Further, Mizuho analyst Vijay Rakesh recently raised price targets for several AI server-related stocks, citing growing demand and momentum across the supply chain. In particular, the 5-star analyst increased the price target for Super Micro Computer stock to $40 from $32, noting the company's leadership in AI server deployments. However, Rakesh maintained a Hold rating on SMCI stock and cautioned investors about 'increasing competition and weak AI server margins.'
Is SMCI Stock a Good Buy?
Overall, Super Micro Computer stock scores a Moderate Buy consensus rating based on six Buys, five Holds, and one Sell recommendation. The average SMCI stock price target of $40.83 suggests that the stock could be range-bound.
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