Forecasts

Super Micro Computer (SMCI) Price Prediction and Forecast

24/7 Wall Street

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.

Key Points in This Article:

  • Super Micro Computer’s future stock performance is being bolstered by explosive demand in the IT services industry.
  • SMCI is shrinking its margins to increase production capacity to meet demand.
  • If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.

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Super Micro Computer News and Analysis

12/3/2024

Super Micro Computer took a hit today. Shares sank 7.1% during midday trading, dipping as low as $39.02. Trading volume also rose 34% above the average daily volume.

11/27/2024

Super Micro Computer has been making waves in the stock market this week due to its extreme volatility. Shares rose dramatically 15.9% on Monday but plummeted 9.7% the next day. Investors are concerned about these wild swings.

11/26/2024

Shares of Super Micro Computer took a big hit today, reversing the recent upward trend. The stock price dropped by 8% in early trading.

11/25/2024

Super Micro Computer’s stock is continuing to rally today, surging 15.9%. The company appears to be recovering from recent downturns as the stock reclaims its 50-day moving average.

11/22/2024

Super Micro Computer’s stock price increased 9.7% today, trading as high as $34.37.

11/21/2024

Shares of companies that partner with Nvidia, which includes Super Micro Computer, increased today following Nvidia’s impressive third-quarter earnings report. Super Micro Computer’s stock price rose 15%.

11/20/2024

Super Micro Computer is experiencing a decline in its stock price today, following an incredible 30% surge yesterday. This drastic change was triggered by the company’s announcement regarding its continued listing on the Nasdaq exchange. Super Micro Computer has also confirmed its ability to complete the necessary forms for the fiscal year ending in June and the third quarter

11/19/2024

Super Micro Computer’s shares are soaring today and up more than 30%. The sudden increase follows the company’s announcement of a new auditor and filing plan to avoid delisting by the Nasdaq.

11/18/2024

Super Micro Computer’s stock price is up 23.22% today, a surprising rally filed by hopes that the company will soon meet Nasdaq’s listing requirements. However, investors remain cautious as they await the company’s official compliance plan.

11/15/2024

Super Micro Computer’s stock price dropped by 1.8% today. Trading volume was also lower than average.

Super Micro Computer’s Recent Stock Success

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.

Key Drivers of Super Micro Computer’s Stock Performance

  1. Enormous Industry Growth: According to Statista, global revenues generated by the IT services industry are $1.420 trillion. Looking forward, that figure is forecast to balloon to $1.879 trillion worldwide by the end of 2029, which is good for a market increase of 32.32%. Most of this growth will be driven by demand for services and solutions that support AI, but other drivers include digital transformation and cloud IT infrastructure — both of which are major business segments for Super Micro Computer. The company has a global reach, with more than half of its revenue being produced from outside of the U.S., meaning it will play a central role in meeting that global growth demand.
  2. Shrinking Margins to Increase AI Production Capacity: Super Micro Computer finished the fiscal year 2024 with a sizable reduction in its margins. And while that would usually be interpreted negatively by investors, it makes perfect sense for the company. In 2024, gross margins shrink to 14.2% from 18.1% in fiscal 2023. The main driver is increasing production of its server solutions to deploy AI graphics processing units (GPUs) — like those produced by tech behemoths NVIDIA Corp. (NASDAQ: NVDA) and Advanced Micro Devices Inc. (NASDAQ: AMD). As a result, the company is positioning itself for growth alongside increased demand for GPUs, which ultimately will cause NVIDIA and Advanced Micro Devices’ successes to trickle down to Super Micro Computer. Most recently, 70% of SMCI’s revenue was from sales of its GPU server solutions for AI implementation. The market for direct liquid cooling (DLC) servers — which Super Micro Computer provides — is expected to grow from $5 billion in 2024 to $21 billion in 2029.

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Super Micro Computer (SMCI) Price Prediction in 2025

The current consensus median one-year price target for Super Micro Computer is $65.00, which represents a nearly 54.76% potential upside over the next 12 months based on the current share price of $42.00. 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.

Super Micro Computer (SMCI) Stock Forecast Through 2030

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

How Super Micro Computer’s Next 5 Years Could Play Out

24/7 Wall Street

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 1527.14% 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 1801.57% 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 1950.67% 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 2378.67% 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 2729.98% higher than the stock’s current price.

Super Micro Computer’s Price Target for 2030

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 3200.19% 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 1527.14%
2026 $79.87 Upside of 1801.57%
2027 $86.13 Upside of 1950.67%
2028 $101.40 Upside of 2378.67%
2029 $118.86 Upside of 2729.98%
2030 $138.61 Upside of 3200.19%

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