While Super Micro Computer (NASDAQ: SMCI) has experienced an impressive run this year, surging 67.59% to close at $50.36 in the last trading session, Wall Street analysts remain cautious about the company’s near-term prospects.
Specifically, SMCI shares retain a “moderate buy” consensus on the stock analysis platform TipRanks, with the average 12-month forecast predicting an 18.75% decline to $40.92 from current levels.
Of the 14 analysts covering the stock, 6 rate it a “buy,” 6 suggest a “hold,” and 2 maintain a “sell” rating, with price targets ranging from $70.00 to $24.00.
TipRanks AI, which aggregates insights from analyst ratings and sentiment, has issued a ‘buy’ rating on SMCI with a price target of $56, suggesting 11.96% upside for the stock.
Analysts update their SMCI stock price targets
BofA Securities recently resumed coverage on SMCI with an ‘Underperform’ rating and $35 price target, representing roughly 28.5% downside from current levels. Analyst Ruplu Bhattacharya cited increasing competition in the server market as a key concern, as detailed on July 9 by Finbold.
In the most recent update today, Citi analyst Asiya Merchant raised the firm’s price target to $52 from $37 while maintaining a “Neutral” rating, applying “a higher 13.5x P/E multiple (applied to our FY27 estimates) from 9-10x prior, reflecting an uptick in multiples for AI peers and broader market multiple moves.”
Merchant noted “continued broader industry demand (albeit lumpy) aided by significant GB200/300 ramp just beginning in May and a burgeoning sovereign/enterprise AI market.” The analyst also stated that “management sounds constructive on materialization of current commitments over the next two quarters as Blackwell GPU supply constraints ease.”
However, Citi expressed concerns about margins, stating:
“we remain concerned on margins given increased momentum and competitive efforts by Dell and HPE, which we believe will temper margin expansion expectations.”
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