Super Micro Computer Inc. (SMCI) has recently garnered significant attention from investors and analysts alike. Following the company’s announcement of its preliminary Q2 FY25 earnings results, SMCI stock increased by approximately 2.8%, closing at $39.68. This uptick reflects investor optimism stemming from the company’s ambitious revenue projections and the positive sentiment expressed by several analysts.
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SMCI Provides Bold FY26 Revenue Projections
SMCI’s aggressive growth forecast for FY26 stole the spotlight. The company projects a significant leap in fiscal 2026, targeting $40 billion in revenue, surpassing current analyst projections of $29.2 billion. This outlook reflects expected growth in AI data centers, as businesses invest more in powerful computing and servers to meet demand.
However for fiscal 2025, SMCI lowered its revenue forecast to a range of $23.5 billion to $25 billion, down from the earlier estimate of $26 billion to $30 billion.
Analysts Bet on AI-Driven Growth, Raise Price Targets
The optimistic FY26 outlook and the company’s dominance in AI-driven server solutions have driven analysts to revise their targets upward:
- Wedbush: Maintained a Neutral rating but acknowledged the potential for higher AI server demand and thereby increased the price target to $40.00 from $24.00 per share.
- Loop Capital: Raised its price target to $50 from $40, maintaining a Buy rating. He believes SMCI’s AI-driven demand and industry positioning make upside inevitable.
- JPMorgan: Raised its price target to $35 from $23, though it remains cautious about execution risks.
- Needham: Expressed skepticism but recognized long-term upside, predicting a more conservative $35 billion in revenue.
With rising price targets and ambitious revenue forecasts, SMCI’s momentum stays strong.
Regulatory Hurdles Mount, but SMCI Races to Avoid Nasdaq Delisting
The company remains under pressure as it faces potential Nasdaq (NDX) delisting for failing to file its annual report and Q1 earnings on time.
However, SMCI’s management reassured investors that an internal review found no fraud, and is actively working with regulators to resolve the situation. The company aims to complete its FY24 audit by the February 25 Nasdaq deadline, which should help avoid delisting.
Is SMCI a Good Buy?
Overall, Wall Street prefers to remain on the sidelines on SMCI stock until it resolves compliance issues. On TipRanks, SMCI stock has a Moderate Buy consensus rating based on three Buys, three Holds, and one Sell rating. The average Super Micro Computer price target of $38.40 implies 3.23% downside potential from current levels.
