Super Micro Computer stock (NASDAQ:SMCI) has been on a remarkable rally, surging over 10% in a single day. The AI-focused server company recently announced that it is integrating Intel’s (NASDAQ:INTC) latest Xeon 6 processor into its servers, which is expected to enhance performance in artificial intelligence, networking, and edge computing.
Following this news, SMCI shares continued their upward trajectory, gaining another 6% in pre-market trading. With its increasing AI-driven revenue and strong financials, many investors are now asking: Is Super Micro Computer stock still a good buy?
Analyst Predicts 40% Upside for SMCI
Despite its rapid ascent, analysts believe Super Micro Computer stock still has room to grow. Rosenblatt analyst Kevin Cassidy recently initiated coverage with a “Buy” rating, forecasting that SMCI could reach $60 per share by the end of 2025.
Cassidy highlights that AI-related revenues now account for nearly 70% of Supermicro’s total sales, with visibility extending up to two years. Additionally, he believes that the company’s expertise in liquid cooling technology provides a strong competitive advantage as demand for efficient, high-performance computing increases.
Super Micro Reports Record Revenue Growth
The bullish sentiment on Super Micro Computer stock is backed by impressive financial performance. In February, the company reported that its revenue more than doubled year-over-year to $14.99 billion. Meanwhile, net income saw an 80% increase, reflecting the company’s strong execution in the AI and data center markets.
To sustain this momentum, Supermicro announced plans to upgrade its tech infrastructure and strengthen internal controls. The company is also hiring additional accounting and audit professionals to improve financial reporting transparency. These strategic moves could boost investor confidence and support further growth in Super Micro Computer stock.
Wall Street’s View on Super Micro Computer Stock
With SMCI trading more than 60% above its February lows, analysts remain divided on its near-term potential. While Rosenblatt sees a 40% upside, the broader Wall Street consensus rates Super Micro Computer stock as a “Hold.” However, the average price target of $58.50 suggests a potential 33% gain from current levels.
Given the company’s expanding AI-driven revenue streams and its leadership in high-performance computing, some investors see this as a buying opportunity. Others remain cautious, watching for signs of continued revenue growth and execution on internal improvements before making a decision.
Should You Buy Super Micro Computer Stock?
The recent surge in Super Micro Computer stock reflects strong investor optimism about the company’s AI growth potential. With AI-related sales making up a significant portion of its revenue, Supermicro is well-positioned to benefit from the rising demand for high-performance computing infrastructure.
However, potential investors should consider the stock’s volatility and monitor upcoming earnings reports for signs of sustained growth. If the company continues to deliver strong financial performance and successfully integrates Intel’s latest chips, SMCI could have further upside in 2025.
As AI adoption accelerates across industries, Super Micro Computer stock remains a key player to watch in the rapidly evolving tech sector.
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