Analysts see 10% upside for SMCI after a 32% annual decline, citing strong AI server demand and Q3 revenue growth.
Super Micro Computer (NASDAQ:SMCI) has been assigned a new price target of $34.92, reflecting a 10% upside from its current $31.68 level. The revised target follows a 32% decline over the past year, despite robust AI server demand driving fundamentals.
The company reported Q3 FY26 revenue of $10.24 billion, a 123% year-over-year increase, while non-GAAP EPS of $0.84 beat consensus by 35%. However, $8.8 billion in debt and an ongoing export-control review remain key risks. Shares have whipsawed, trading 40% below their 52-week high of $62.36.
Sentiment was further pressured by a $7 billion equity financing announcement in June, which contributed to a 14.6% monthly decline. Despite volatility, analysts maintain a buy rating with high confidence.