Super Micro Computer was a big winner in the first half of 2024. However, an August report from now-defunct short-selling activist group Hindenburg Research caused a significant crash in the price of Super Micro stock (NASDAQ: SMCI).
The report in question alleged widespread accounting abuses. Super Micro had to delay the filing of its annual report. However, the situation was resolved on February 25, and the server-maker regained full compliance.
Two weeks earlier, on February 11, the business also held its Q2 2025 earnings call. While most metrics came in slightly below estimates, core operations demonstrated a degree of resilience that inspired confidence from investors.
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At press time, SMCI stock was changing hands at a price of $41.35, marking a 35.66% increase on a year-to-date (YTD) basis.
March 10 saw prices skyrocket from $36.90 to $40.84 — a 10.67% surge. The rally was caused by optimistic coverage from a Wall Street analyst.
Rosenblatt sees 45% upside in the cards for SMCI stock
On March 10, Rosenblatt researcher Kevin Cassidy initiated coverage of Super Micro stock. The analyst gave SMCI stock a ‘Buy’ rating with a $60 price target. If met, Cassidy’s 12-month price forecast would equate to a hefty 45.10% rally from Supermicro’s current price.
So, why does Cassidy see so much upside in the cards for Super Micro shares? In a note shared with investors, the analyst cited accelerating artificial intelligence (AI) revenues and increased visibility following the end of SMCI’s long road to regaining compliance.
At present, the company seems to be successfully capitalizing on the narrative, as AI revenues account for almost 70% of sales. In addition, the researcher highlighted Super Micro’s ability to deploy liquid cooling at scale, which provides a significant competitive advantage.
Besides Cassidy, in late February, Barclays analyst George Wan also reinstated coverage on SMCI shares. Although Wan set a more conservative $59 price target with an ‘Equal Weight’ rating, his outlook still implies a 42.68% upside.
To boot, noted chart expert TradingShot outlined an even more bullish case, suggesting that a bull flag chart pattern was confirmed in early February. If this piece of technical analysis holds water, SMCI stock could test levels as high as $65 — which would equate to a 57.19% surge from current prices.
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