SMCI Stock Forecast & Price Target

Super Micro Computer Inc is expected to achieve a revenue growth of 30% year-over-year for FY26, projected to reach approximately $30.7 billion, supported by increasing gross margins and Earnings Per Share (EPS) of $2.84. The company has experienced robust revenue growth, scaling from $3.6 billion in FY21 to $15 billion in FY24, driven significantly by its focus on artificial intelligence solutions, which now account for nearly 70% of sales. Additionally, Supermicro's strategic expansion in key regions such as the U.S., Taiwan, and Malaysia enhances its operational efficiency and competitiveness in the high-performance computing market.

Super Micro Computer Inc. has experienced a decline in its non-GAAP gross margin, falling from 13.3% to 11.9% due to adverse product and customer mix dynamics alongside increased costs associated with product delays and R&D investments. The company has revised its FY2025 revenue guidance downward to a range of $23.5B to $25B, a reduction of approximately 13% from previous estimates, while Q4 revenue expectations indicate a decrease in guidance, reflecting only a projected increase of 30% quarter-over-quarter despite substantial year-over-year growth. Additionally, the firm's sales for the December quarter were $5.68B, below consensus estimates, further illustrating potential challenges in maintaining profitability and growth amidst competitive pressures and operational hurdles.