The buzz around Super Micro Computer (NASDAQ:SMCI) has turned super positive over the past few days, following the company’s recent Q2 2025 preliminary update last week. Shares are up 24% in the week since the conference call.
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Among the nuggets that helped to boost investor sentiment, SMCI CEO Charles Liang offered bullish revenue guidance for FY 2026 of $40 billion, which would translate into a whopping 60% to 70% increase from the expected FY 2025 numbers of $23.5 billion to $25 billion.
However, arguably the largest beacon of optimism was the company’s adamant affirmation that it is on track to meet its critical February 25 filing deadline. Failure to do so could lead to delisting from the Nasdaq exchange.
One investor known by the pseudonym Hunting Alpha believes the company is well on its way to satisfying these filing concerns. Looking at SMCI’s business prospects, Hunting Alpha sees plenty of dollar signs on the horizon.
“I lean bullish on the company’s revenues outlook, encouraged by management’s FY ’26 (Jun ’26 quarter) guidance for $40 billion in sales,” says the investor.
Hunting Alpha explains that SMCI’s direct liquid cooling solutions in AI data centers will be the company’s biggest source of growth. These solutions – which are installed in new data centers – can reduce costs by 40%. The investor notes that SMCI projects that they will become part of some 30% of all new data centers around the world during the coming year.
The investor is also encouraged by the company’s assertion that the $40 billion FY 2026 figure represents a conservative estimate, which points to the vast potential that SMCI has for future growth.
Of course, SMCI’s forecast had been largely overshadowed by the looming February 25 deadline, and Hunting Alpha believes that the company’s recent call has gone a long way towards addressing these fears.
Going forward, Hunting Alpha is eager to see the full audited financials at the end of the month — in particular the company’s remaining performance obligations. The investor explains that this data point can shed further light on SMCI’s ability to meet its lofty FY 2026 projections.
“I suspect that the full financial disclosures on FY ’25 will confirm the bullish story on SMCI,” concludes Hunting Alpha. “The opportune time to get in on the stock would be before that.” (To watch Hunting Alpha’s track record, click here)
On the other hand, Wall Street analysts aren’t quite ready to take the plunge. With 3 Buy, 2 Hold, and 2 Sell ratings, SMCI holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $36.50 would translate into losses of roughly 24% in the coming year. (See SMCI stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
