Super Micro Computer stock (NASDAQ: SMCI) has been one of the best performers on global markets over recent years. 12 month gains of more than 100% put the stock in the upper echelons, and with the trend seemingly in tact the question remains as to whether the company is a buy or sell.
Whilst we cannot give you the answer as to how to treat the stock, we can go one better. The SMCI forecasts, price targets and analysis from the street found here, which along with your fundamentals on how to value a stock will help you make your own educated decisions.
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SMCI EPS and Revenue Breakdown 2020-2023
| SMCI | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $1.60 | $3.34 billion |
| 2021 | $2.09 | $3.56 billion |
| 2022 | $5.32 | $5.20 billion |
| 2023 | $11.43 | $7.12 billion |
Industry Comparison
Super Micro Computer Inc (SMCI) operates in the realm of high-performance, high-efficiency server technology. Founded in September 1993, the company develops and provides end-to-end green computing solutions for data centers, cloud computing, enterprise IT, big data, high-performance computing (HPC), and embedded markets. It has become a go-to stock for investors in the artificial intelligence (AI) space as it seen as a major beneficiary.
Supermicro’s products include server systems, blade servers, data storage, and AI solutions. The company trades on the Nasdaq stock exchange under the ticker symbol SMCI.
Super Micro Computer Share Price & Chart
From around April 2023 to March 2024 the SMCI share price skyrocketed as investors viewed it as a key player in the AI industry. Despite a pullback more recently, at the time of writing (May 27, 2024), the stock has surged 350% in the last 12 months and over 215% in the year-to-date.
P/E Ratio Average Over the Last Ten Years: 17.63 (Source: FullRatio)
SuperMicro Stock Forecast
Data compiled by TradingView shows that out of 20 analysts covering SMCI shares, 14 have a Buy rating on the stock, five have a Hold rating on the shares, and one has a Sell rating.
A View From The Bulls: Barclays raised itsprice target forSupermicro to $1,000 from $961 in early May, maintaining an Overweight rating on the shares. The bank said that the company reported robust June quarter revenue guidance. They noted that the next two quarters are expected to grow sequentially based on improving supply and artificial intelligence tailwinds.
A View From The Bears: While finding a bear on SMCI is tough at the current time, analysts at Susquehanna are seemingly the only current Wall Street Supermicro bear. The firm downgraded SMCI to Negative from Neutral in December 2023. It has a $250 price target on the stock. Susquehanna analysts cited industry fundamentals for the downgrade. The firm said it “applauds” Supermicro’s approach of enabling mass customisation of next-gen server architecture. However, it highlighted several factors for the rating cut, including a more appropriate valuation multiple.
Average Analyst Consensus 12-Month Price Target: $1,059.03
Our View: SMCI has shown a solid financial performance, with demand from AI, data centers, cloud computing, and 5G helping to boost the company’s performance. However, given its share price surge, investors should carefully consider the potential valuation risk.
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Who Should Buy SMCI Shares
For investors focused on the rise of AI, Super Micro Computer presents an attractive opportunity. However, when it comes to building an investment portfolio, each stock has to be carefully considered. Here’s a breakdown of investor profiles that might find SMCI shares attractive:
SMCI has shown significant growth potential, but it also comes with substantial volatility and inherent risks. Investors who are comfortable with substantial price fluctuations and have a long-term investment horizon may find SMCI shares appealing.
As a company at the forefront of server and storage solutions, SMCI appeals to those who believe in the continued expansion of technology infrastructure.
For SMCI, it’s not all about artificial intelligence. The company plays a significant role in the data center industry, which is essential for the growth of cloud computing and digital services. If you believe that the demand for data centers will continue to rise, SMCI offers a way to capitalise on this trend.
SMCI has demonstrated robust revenue growth. Investors looking for high-growth opportunities, even at the cost of higher risk, might find SMCI an attractive addition to their portfolios.
SMCI is not without its challenges, including competitive pressures and the need for continuous innovation. Investors should carefully assess their risk tolerance and investment strategy before considering SMCI shares, especially when the stock is at such highs.
