Super Micro Computer (NASDAQ: SMCI) could be entering a new long-term growth phase that may send the stock as high as $700, representing a gain of roughly 1,700%.
The bullish SMCI forecast, shared by TradingShot in a TradingView post on September 7, is based on a recurring historical pattern in which prolonged periods of lower highs and consolidation have preceded the company’s largest rallies.
The projected target implies an increase of about 1,700% from SMCI’s press-time price of $39.
The analyst believes the current setup resembles previous cycle bottoms and could mark the beginning of what he describes as an AI supercycle phase.
According to the analysis, SMCI has remained in a bearish cycle since reaching its all-time high in March 2024. The decline followed a multi-year parabolic rally that the analyst labels the company’s “Major Expansion Phase.”
However, similar corrections occurred before previous major advances. In both earlier cycles, the stock spent years trading below a descending trendline while remaining significantly under its 50-month and 100-month moving averages.
SMCI’s stock momentum
The analyst noted that major bottoms formed when the monthly Relative Strength Index (RSI) began creating a rounded bottom pattern. A similar RSI formation has been developing since 2025.
If the pattern continues to play out, the analysis projects a breakout above the 1.0 Fibonacci extension level, with the 1.236 extension near $700 emerging as the next major target.
The bullish outlook is also supported by SMCI’s growing presence in the artificial intelligence infrastructure market as highlighted in its financials. In the fourth quarter of fiscal 2026, the company reported revenue of $11.1 billion, up about 93% year-over-year.
Non-GAAP diluted earnings per share came in at $1.70, well above company guidance, while gross margin expanded to 17.6% from 10.1% in the previous quarter.
For the full fiscal year, revenue climbed 78% to $39.1 billion, while net income reached approximately $2.2 billion.
Adding to the bullish case, Super Micro Computer reported more than $60 billion in new orders during the fourth quarter, creating a record backlog entering fiscal 2027.
SMCI’s role in AI infrastructure
The company is increasingly positioning itself as a full AI infrastructure provider rather than solely a server manufacturer.
Its Data Center Building Block Solutions platform focuses on rack-scale, liquid-cooled systems designed for faster deployment and improved energy efficiency. The strategy is expected to support higher-margin growth as AI data center spending accelerates.
Super Micro also remains closely aligned with Nvidia’s latest AI platforms while expanding support for AMD-based systems and other AI ecosystems.
At the same time, the company continues to increase manufacturing capacity across North America and Asia to meet growing demand.
Despite these growth drivers, the stock continues to trade at a valuation discount compared to many AI-focused peers.
Investors remain cautious due to past margin volatility, customer concentration risks, working capital requirements, dilution from a capital raise, and governance concerns.
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