The stock of Super Micro Computer (SMCI) has received an upgrade as the trade in artificial intelligence (AI) companies reignites and investors pile back into technology names.
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Analysts at Citigroup (C) hiked their price target on SMCI stock to $52 from $37, citing improving demand for the company’s AI servers and the ramp-up of Nvidia’s (NVDA) newest processors that run on Super Micro Computer’s servers.
However, despite raising its price target, Citigroup maintained a Hold-equivalent neutral rating on SMCI stock, pointing to increasing competition from the likes of Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE). “We remain concerned on margins given increased momentum and competitive efforts by DELL and HPE, which we believe will temper margin expansion expectations.”
Earnings Outlook
Super Micro Computer is expected to report Fiscal fourth-quarter financial results in early August. Citigroup forecasts revenue of $6.07 billion, up 13% year-over-year and 32% quarter-over-quarter, and earnings per share of $0.45, roughly in line with consensus estimates on Wall Street.
SMCI stock has been volatile over the past year as the company has dealt with an accounting scandal, potential delisting from the Nasdaq exchange on which it trades, and rising competition in the market for AI servers. So far in 2025, Super Micro Computer’s stock has risen 63%.
Is SMCI Stock a Buy?
The stock of Super Micro Computer has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on six Buy, six Hold, and two Sell recommendations issued in the last three months. The average SMCI price target of $40.92 implies 17.70% downside from current levels.
