Super Micro Computer (SMCI) Price Forecast and Forecast.

As the AI-fueled tech rally continues, companies that can diversify to meet the multiple demands facing the industry are poised to take advantage. Super Micro Computer Inc. (NASDAQ: SMCI) is one of those companies. The San Jose, California-based technology firm specializes in high-performance and high-efficiency servers, but also offers software solutions as well as storage systems for data centers and enterprises focused on cloud computing, AI, 5G and edge computing.

Since the March 2007 IPO, when the stock debuted at $8, the stock has gained 6,780%. That means a $1,000 investment on the day the company went public would be worth $77,313.75 today. But after hitting an all-time high of $1,140 per share on March 8, 2024, the stock has fallen 45%.

However, analysts expect great upside potential for the tech stock. Hindsight is 20/20 and all that matters now is how the Super Micro Computer will perform in the future. So 24/7 Wall Street conducted analysis to give investors – and potential investors – an idea of ​​where SMCI’s stock might be headed over the next five years.

Key points from this article:

• Future performance of Super Micro Computer stocks is supported by explosive demand in the IT services industry.
• The company’s 10-for-1 stock split will attract a broader investor base.
• SMCI is squeezing its margins to increase production capacity to meet demand.
• If you’re looking for a megatrend with massive potential, be sure to grab a free copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge head start on taking advantage of this massive shift.

The recent success of Super Micro Computer stocks

SMCI stock has been particularly rewarding for shareholders in the recent past, as it exploded to gain 3,096% in the five years between August 2019 and August 2024. The following table summarizes Super Micro Computer’s stock price, earnings and profits (net income). from 2014 to 2023:

*Revenue and net income in billions of dollars

Over the past decade, Super Micro Computer’s revenue has grown over 385%, while net income has grown just over 1,085%. Despite seeing a minor decline in revenue in 2020, down 4.6%, SMCI stock still managed to grow year-over-year on rising net income. As the IT services provider looks forward to the second half of the decade, we’ve identified three key factors that could impact its growth value and stock performance.

Key Performance Drivers of Super Micro Computer Stock

1. Tremendous Industry Growth: According to Statista, the global revenue generated by the IT services industry represents a $1.420 trillion industry. Going forward, this figure is projected to grow to $1.879 trillion globally by the end of 2029, which is good for a market growth of 32.32%. Most of this growth will be driven by demand for services and solutions that support AI, but other factors 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 generated outside the US, meaning it will play a central role in meeting this global growth demand.
2. Shrinking margins to increase AI production capacity: Super Micro Computer ended fiscal 2024 with a sizeable reduction in its margins. And while this would typically 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: increased production of server solutions to implement AI graphics processing units (GPUs) – such as those produced by the tech giants NVIDIA Corp. (NASDAQ: NVDA) and Advanced Micro Devices Inc. (NASDAQ: AMD). As a result, the company is positioning itself for growth with increased demand for GPUs, which will see the successes of NVIDIA and Advanced Micro Devices trickle down to Super Micro Computer. Most recently, 70% of SMCI’s revenue was from sales of its GPU server solutions for implementing AI. The direct liquid cooling (DLC) server market – which Super Micro Computer offers – is expected to grow from $5 billion in 2024 to $21 billion in 2029.

Super Micro Computer (SMCI) Price Prediction in 2025

The current median one-year consensus price target for Super Micro Computer is $693, representing a potential upside of nearly 15% over the next 12 months, based on the stock’s current price of $604.82. Among all analysts covering Super Micro Computer, the stock is a consensus buy, with a “Buy” rating of 2.31 on a scale of 1 (“Strong Buy”) to 5 (“Strong Sell”).

24/7 Wall Street The 12-month estimate calls for Super Micro Computer’s share price to be $683.40, based on an estimated EPS of $34.17 in 2025. Adjusted for the company’s October 1, 2024 stock split, this figure will be 68.34 USD per share.

Super Micro Computer (SMCI) Inventory Forecast to 2030

*Revenue and net income in billions of dollars

How the next 5 years of the Super Micro Computer might play out

At the end of 2025, we expect to see revenue, net income, and EPS grow by 89.16%, 63.41%, and 70.08%, respectively. That would result in a price per share of $683.40 (or $68.34 on a post-split adjusted basis), which is 12.99% higher than where the stock is currently trading .

When 2026 ends, we estimate SMCI’s price at $798.66 (or $79.87 on a post-split adjusted basis), which is 32.05% higher than where the stock is trading today. This is based on modest revenue gains, an estimated EPS of $44.37 and a healthy estimated P/E ratio of 18.

At the end of 2027, we forecast a sizeable share price increase to $861.28 (or $86.13 on a post-split adjusted basis), driven by revenue of $37.116 billion and net income of $1.458 billion, which which will lead to the stock trading. 42.20% higher than the current stock price.

By the end of 2028, we expect to see the stock trade at $1,041.04 (or $101.40 on a post-split adjusted basis), or 72.12% more than the stock is currently trading on revenue of $42.631 billion, a net income of $1.881 billion and an EPS of $67.60.

And at the end of 2029, Super Micro Computer is expected to have revenue of $50,154 and net income of $2,428, resulting in a price per share of $1,188.59 (or $118.86 on a post-split adjusted basis), which is 96.52% higher than the current stock price.

Super Micro Computer price target for 2030

By the end of 2030, we estimate a SMCI stock price of $1,386.08 (or $138.61 on a post-split adjusted basis), good for a 129.17% upside from today’s stock price, based on to an EPS of $106.62 and a P/E ratio of 13.

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