Super Micro Computer (SMCI) received a price target boost from research firm Northland Securities. Analyst Nehal Chokshi lifted the price target on SMCI stock to $70 (from $57) to match the current Street High Price Target. The revised price target implies an impressive 88.9% upside potential from current levels. Chokshi has consistently maintained a “Buy” rating on Super Micro Computer stock over the years.
Chokshi is a five-star analyst, ranking 57 of the 9,414 analysts ranked on TipRanks. Chokshi boasts a 23.5% average return per rating and a 59% success rate. To date, Chokshi’s best recommendation has been on SMCI stock between January 19, 2023 to January 19, 2024. The analyst earned an impressive 497.4% return for his Buy view on SMCI during this period.
Chokshi Remains Highly Optimistic on SMCI
Super Micro Computer provides liquid cooling technology for data centers that run AI (artificial intelligence) models. Chokshi believes that SMCI’s market share for the March quarter was impacted by short-term headwinds such as its ability to become current with its SEC filings and fears of delisting from the Nasdaq stock exchange.
Moreover, the analyst is optimistic that SMCI can possibly achieve its Fiscal 2026 sales target of $40 billion, calling it “reasonable.” Chokshi, himself, has projected SMCI’s sales to reach $30.9 billion in FY26, which is lower than SMCI’s forecast.
Chokshi added that SMCI’s sales projection for the March quarter is largely influenced by SMCI’s GPU as a Service (GPUaaS) customers, which are positioned in the Blackwell queue. Super Micro’s liquid cooling servers are outfitted with Nvidia’s (NVDA) most advanced Blackwell GPUs (Graphic Processing Units), and hence, their sales are dependent on Nvidia’s timely supply.
Furthermore, Chokshi noted that SMCI’s projections also align with competitor Dell’s (DELL) forecasts. Dell has projected similar figures for its Dell servers and networking revenues for the April quarter. This reflects consistency in the projections of both companies and also aligns with supplier Nvidia’s Blackwell shipments. Importantly, during the January quarter, a majority of Blackwell GPUs were shipped to hyperscalers (cloud service providers) that were neither SMCI nor Dell’s customers.
Is SMCI Stock a Good Buy?
Currently, analysts prefer to remain on the sidelines on Super Micro Computer stock. On TipRanks, SMCI stock has a Hold consensus rating based on three Buys, four Holds, and two Sell ratings. Also, the average Super Micro Computer price target of $49.14 implies 32.6% upside potential from current levels. In the past year, SMCI stock has lost 68%.
