Wedbush Forecasts Strong Price Appreciation for Super Micro Computer (NASDAQ:SMCI) Stock

Key Points

• Wedbush raised its price target for Super Micro Computer from $34 to $40 while maintaining a neutral rating, implying 26.58% upside from the previous close. The broader analyst consensus remains Hold, with an average target of $40.21.
• Super Micro reported adjusted EPS of $1.70, well above the $0.92 consensus, while revenue rose 93.2% year over year to $11.12 billion but fell short of estimates. The company also issued strong fiscal 2027 and first-quarter guidance, signaling continued AI-server and data-center demand.
• Despite strong growth prospects, investors face risks from the company’s thin 3.7% net margin and below-estimate revenue, while analyst sentiment remains mixed: four firms rate the stock Buy, twelve Hold and two Sell.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) had its target price hoisted by analysts at Wedbush from $34.00 to $40.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. Wedbush's target price suggests a potential upside of 26.58% from the stock's previous close.

Several other equities analysts have also recently issued reports on the company. The Goldman Sachs Group reissued a "sell" rating on shares of Super Micro Computer in a research note on Wednesday. Northland Securities set a $36.00 price objective on shares of Super Micro Computer in a report on Wednesday, July 22nd. Bank of America reaffirmed an "underperform" rating on shares of Super Micro Computer in a research note on Wednesday. Needham & Company LLC reissued a "buy" rating and issued a $46.00 price target on shares of Super Micro Computer in a research note on Wednesday. Finally, Wolfe Research started coverage on Super Micro Computer in a research report on Thursday, June 11th. They set a "peer perform" rating on the stock. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $40.21.

Super Micro Computer Trading Up 0.4%

Shares of SMCI opened at $31.60 on Wednesday. The stock has a market capitalization of $19.00 billion, a P/E ratio of 16.72, a PEG ratio of 0.37 and a beta of 1.95. Super Micro Computer has a twelve month low of $19.48 and a twelve month high of $58.78. The company has a quick ratio of 1.29, a current ratio of 2.66 and a debt-to-equity ratio of 0.88. The firm has a fifty day simple moving average of $30.58 and a two-hundred day simple moving average of $30.44.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.92 by $0.78. The firm had revenue of $11.12 billion for the quarter, compared to analysts' expectations of $11.60 billion. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The company's revenue for the quarter was up 93.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, research analysts anticipate that Super Micro Computer will post 2.1 EPS for the current year.

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SMCI. Flagship Harbor Advisors LLC purchased a new position in Super Micro Computer in the fourth quarter worth about $25,000. Elyxium Wealth LLC bought a new stake in Super Micro Computer during the fourth quarter valued at approximately $26,000. Arax Advisory Partners purchased a new stake in Super Micro Computer during the fourth quarter valued at approximately $28,000. SHP Wealth Management bought a new position in Super Micro Computer in the fourth quarter worth approximately $29,000. Finally, Concord Wealth Partners boosted its stake in shares of Super Micro Computer by 2,564.1% during the 4th quarter. Concord Wealth Partners now owns 1,039 shares of the company's stock worth $30,000 after acquiring an additional 1,000 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

Key Stories Impacting Super Micro Computer

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Super Micro reported adjusted earnings of $1.70 per share, well above the approximately $0.92 consensus estimate and up from $0.31 a year earlier. Quarterly revenue increased 93.2% year over year to $11.12 billion, while adjusted gross margin improved to 17.6%. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: The company issued exceptionally strong guidance, forecasting fiscal 2027 revenue of $65 billion to $72 billion, versus analyst expectations of $53.1 billion. First-quarter fiscal 2027 revenue guidance of $14.5 billion to $15.5 billion also exceeded the $12 billion consensus, while EPS guidance of $1.01 to $1.10 topped estimates of $0.72. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Investors interpreted the results as evidence that AI server demand and the broader data-center buildout remain strong. Super Micro and CoreWeave both benefited from upbeat forecasts for computing capacity demand. CoreWeave, Super Micro climb on signs of sustained AI buildout
• Positive Sentiment: Analyst sentiment strengthened: Rosenblatt raised its price target from $45 to $51 and assigned a buy rating, while Needham reaffirmed its buy rating with a $46 target. Both targets imply substantial upside from the stock’s $31.60 reference price.
• Neutral Sentiment: A reported collaboration involving SpaceX and xAI to develop a gigawatt-scale data center adds potential strategic value, although the project’s financial contribution and timing remain uncertain.
• Negative Sentiment: Revenue of $11.12 billion fell short of the $11.60 billion estimate, and Super Micro’s net margin remained relatively thin at 3.7%. Investors may continue monitoring whether rapid growth translates into durable profitability and cash flow.

About Super Micro Computer

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company's product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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