Forecasts
Super Micro Computer (SMCI) Price Prediction and Forecast
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As the artificial intelligence-fueled tech rally continues, companies that can diversify to address the manifold demands the industry faces are poised to profit. Super Micro Computer Inc. (NASDAQ: SMCI) is one of those companies. The San Jose, Calif.-based tech firm specializes in high-performance and high-efficiency servers, but it also provides software solutions as well as storage systems for data centers and enterprises focusing on cloud computing, AI, 5G, and edge computing.
Nonetheless, analysts expect big upside potential for the tech stock. Hindsight is 20/20, and all that matters now is how Super Micro Computer will perform going forward. So 24/7 Wall Street has performed analysis to provide investors — and potential investors — with an idea of where shares of SMCI could be headed over the course of the next five years.
10/14/2024
Recent trading activity in Super Micro Computer options suggests wealthy investors are betting against the company’s stock. Benzinga found 47 unusual options trades for SMCI, with many demonstrating a belief that the stock price will go down.
10/10/2024
Super Micro Computer’s stock price fell 3% today, trading as low as $44.51. Volume was 19,511,104 shares, which is 76% lower than average.
10/9/2024
Super Micro Computer experienced a surge in call option trading activity today. The volume of call options purchased was 37% higher than average.
10/8/2024
Super Micro Computer (SMCI) surged earlier this year, but challenges like a Hindenburg short report, delayed annual report, and possible DOJ probe caused shares to drop 25%. Despite this, SMCI’s AI-driven growth remains strong, with future opportunities in cooling technology and a new factory. Wall Street projects an 87% stock surge by 2025 if issues clear up.
10/2/2024
Barclays lowered its price target for Super Micro Computer stock, from $438.00 to $42.00. However, the underlying valuation remains the same. The lower target reflects concerns about near-term margin pressure due to competitive pricing, uncertainty regarding internal controls, delays in financial filings, and limited visibility into future orders.
10/1/2024
Super Micro Computer has officially split its stock, leading to a dramatic decrease in per-share prices. It closed at $416.40 per share yesterday and opened around $42 per share this morning. Each share is now worth one-tenth of yesterday’s price, as there are now 10 shares for every previous single share.
9/30/2024
Super Micro Computer will officially split its stock today after the market closes.
9/27/2024
Next week, Super Micro Computer will undergo a 10-for-1 stock split, meaning investors will have 10 times as many shares but each share will be worth 1/10th as much. The new share price will take effect on Tuesday, October 1st.
9/26/2024
The U.S. Department of Justice has launched its investigation into Super Micro Computer. A prosecutor at a U.S. attorney’s office has recently contacted individuals who may possess relevant information related to a former employee who claimed the company engaged in accounting violations.
9/25/2024
Super Micro Computer shares rose 1.4% today, reaching a high of $475.74 and a trading volume of 1,941,362 shares.
Shares of SMCI have been particularly rewarding to shareholders in the recent past, as they exploded by gaining 3,096% in the five years between August 2019 and August 2024. The following table summarizes Super Micro Computer’s share price, revenues, and profits (net income) from 2014 to 2023:
Year | Share Price (pre-split) | Revenues* | Net Income* |
2014 | $36.39 | $1.467 | $.054 |
2015 | $24.66 | $1.954 | $.092 |
2016 | $28.05 | $2.225 | $.072 |
2017 | $20.93 | $2.484 | $.067 |
2018 | $13.90 | $3.360 | $.046 |
2019 | $24.65 | $3.500 | $.072 |
2020 | $31.66 | $3.339 | $.084 |
2021 | $43.95 | $3.557 | $.112 |
2022 | $82.19 | $5.196 | $.285 |
2023 | $284.26 | $7.123 | $.640 |
*Revenue and net income in $billions
In the last decade, Super Micro Computer’s revenue grew by more than 385% while its net income increased by just over 1,085%. Despite seeing a minor revenue contraction in 2020 with a decrease of 4.6%, shares of SMCI still managed to increase year-over-year on still-growing net income. As the IT services provider looks forward to the second half of the decade, we have identified three key drivers that are likely to impact its growth metrics and stock performance.
The current consensus median one-year price target for Super Micro Computer is $65.00, which represents a nearly 35.98% potential upside over the next 12 months based on the current share price of $47.80. Of all the analysts covering Super Micro Computer, the stock is a consensus buy, with a 2.38 ‘Outperform’ rating on a scale from 1 (‘Strong Buy’) to 5 (‘Strong Sell’).
24/7 Wall Street’s 12-month forecast projects Super Micro Computer’s stock price to be $68.34 based on a projected EPS of $3.35 in 2025.
Year | Revenue* | Net Income* | EPS |
2025 | $28.265 | $1.974 | $3.35 |
2026 | $31.634 | $2.548 | $4.31 |
2027 | $37.116 | $1.458 | $5.49 |
2028 | $42.631 | $1.881 | $6.76 |
2029 | $50.154 | $2.428 | $8.49 |
2030 | $59.005 | $3.134 | $10.62 |
*Revenue and net income in $billions
At the end of 2025, we expect to see revenue, net income, and EPS rise by 89.16%, 63.41%, and 70.08%, respectively. That would result in a per-share price of $683.40 (or $68.34 on a post-split-adjusted basis), which is 1329.71% higher than where the stock is currently trading.
When 2026 concludes, we estimate the price of SMCI to be $798.66 (or $79.87 on a post-split-adjusted basis), which is 1570.84% higher than where shares are trading today. This is based on modest revenue gains, an assumed EPS of $44.37, and a healthy projected P/E ratio of 18.
At the conclusion of 2027, we forecast a sizable jump in the stock price to $861.28 (or $86.13 on a post-split-adjusted basis) driven by $37.116 billion in revenue and $1.458 billion in net income, which will result in shares trading for 1701.84% higher than the current share price.
By the end of 2028, we expect to see shares trading for $1041.04 (or $101.40 on a post-split-adjusted basis), or 2077.91% higher than the stock is trading for today on revenues of $42.631 billion, net income of $1.881 billion, and an EPS of $67.60.
And at the end of 2029, Super Micro Computer is forecast to achieve revenue of $50.154 billion and net income of $2.428 billion, resulting in a per-share price of $1188.59 (or $118.86 on a post-split-adjusted basis), which is 2386.59% higher than the stock’s current price.
By the conclusion of 2030, we estimate an SMCI share price of $1386.08 (or $138.61 on a post-split-adjusted basis), good for a 2799.75% increase over today’s share price, based on an EPS of $106.62 and a P/E ratio of 13.
Year | Price Target | % Change From Current Price |
2025 | $68.34 | Upside of 1329.71% |
2026 | $79.87 | Upside of 1701.84% |
2027 | $86.13 | Upside of 2077.91% |
2028 | $101.40 | Upside of 2077.91% |
2029 | $118.86 | Upside of 2386.59% |
2030 | $138.61 | Upside of 2799.75% |
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