Super Micro Computer is a major player in the AI hardware market and has seen stock growth in 2025

From Yahoo Finance: 2025-07-02 09:00:00

Super Micro Computer (SMCI) is a key player in the AI infrastructure space, meeting demand for high-performance computing and AI-optimized server systems. Despite skepticism around margins and competition, SMCI has seen a 55% YTD stock increase and strong revenue projections.

Super Micro Computer, based in San Jose, California, is valued at $29.3 billion and a major player in the AI hardware market. Its stock, trading at a discount compared to peers, has been on the rise in 2025, showing strength with an RSI near 64.

In Q3 of fiscal 2025, SMCI reported a 19.5% YOY increase in net sales to $4.6 billion, reflecting demand for AI-driven server systems. Margins faced pressure, with non-GAAP gross margin declining to 9.6%. Despite challenges, management remains confident in AI positioning and growth trajectory.

For fiscal 2025, SMCI trimmed revenue outlook to $21.8 billion – $22.6 billion, citing near-term caution. Analysts project a decline in EPS for 2025, rebounding in 2026. KeyBanc analyst Brandon Nispel initiated coverage with a “Sector Weight” rating, citing competitive pressures on margins.

Wall Street maintains a “Moderate Buy” rating on SMCI, with analysts split between bullish and cautious sentiment. The average price target is $41.21, indicating potential downside, but a high of $70 suggests significant upside potential.

Read more: Is Super Micro Computer Stock a Buy, Sell, or Hold for July 2025?