SMCI Stock Forecast & Price Target

Super Micro Computer Inc. has demonstrated impressive revenue growth, increasing from $3.6 billion in FY21 to $15 billion in FY24, driven by a significant focus on high-performance, tailored solutions that cater to the growing demand in AI and other markets. The company's revenue is projected to continue its upward trajectory, with expectations of a 30% year-over-year increase in FY26, reaching approximately $30.7 billion, supported by improving gross margins of around 11%. Additionally, Supermicro's strategic operational expansions in the U.S., Taiwan, and Malaysia are enhancing efficiencies, positioning the firm favorably to capture further market share in the competitive high-performance computing landscape.

Super Micro Computer Inc. has reported a decline in non-GAAP gross margin, from 13.3% to 11.9% in F1Q25, attributed to a challenging product and customer mix and higher costs associated with delays in the 10K project and new product R&D. Management has revised fiscal year 2025 revenue guidance downward from a range of $26 billion to $30 billion to a new range of $23.5 billion to $25 billion, suggesting a potential 13% decrease at the midpoint. Additionally, recent quarterly sales and future guidance indicate a lack of visibility with slight revenue declines anticipated in the upcoming quarters, raising concerns about the company's growth prospects amidst intensified competition and supply chain challenges.