A prominent analyst cites $60 billion in new orders and margin expansion as catalysts for Super Micro Computer shares.
Super Micro Computer (NASDAQ:SMCI) has drawn a bullish outlook from one Wall Street analyst, who forecasts 55% upside from current levels. The thesis hinges on $60 billion in new orders and gross margins rebounding from 6% to nearly 10%, offsetting recent dilution and export-control concerns.
SMCI shares trade at $31.13, down 7.13% over the past three months and 33.3% below their 52-week high of $58.78. The stock lags peers like Dell and HPE, which surged 264% and 124% year-to-date, respectively, on AI server demand. A forward P/E of 10 makes SMCI appear undervalued, but the bull case depends on a clean audit and Q4 results due August 11.
The company specializes in high-density AI servers and liquid-cooled Blackwell platforms, which hyperscalers are purchasing in bulk. Despite recent volatility, the analyst argues the backlog and margin improvement justify a higher valuation.