‘Climb Aboard,’ Says Top Investor About Super Micro Computer Stock

What a difference a week makes. Super Micro Computer (NASDAQ:SMCI) was down in the dumps just a few days ago following a disappointing Q3 2025 quarterly report. Not only were revenues of $4.6 billion down 19% sequentially, but the company also lodged top- and bottom-line misses.

This, however, is now old news. Along with many of its peers, SMCI benefitted from the 90-day tariff detente between the U.S. and China, and its share price began to climb.

And then came a true gamechanger: On Tuesday, Super Micro Computer and the Saudi Arabian data center DataVolt announced a major multibillion dollar agreement. Accordingly, SMCI will build GPU platforms and rack systems for the Saudi company.

SMCI’s share price has now soared ~36% upwards since its lukewarm earnings call, as investors flocked to join the bonanza.

One top investor understands the fervor, and believes the excitement is more than justified.

“The multi-year $20 billion partnership with DataVolt is poised to have a transformative impact, representing an amount comparable to the company’s TTM revenue,” declares the 5-star investor, who is among the top 4% of TipRanks’ stock pros.

KM offers a gentle reminder that SMCI has been one of the largest AI winners this decade. Despite the recent revenue miss, the investor points out that the company is still expecting to reach $40 billion in revenues for FY 2026 (a massive jump from FY 2021 revenues of $3.6 billion).

“If a tenfold revenue growth within just six years does not impress you, it is difficult to imagine what would,” adds KM.

The new partnership with DataVolt is a “huge” deal emphasizes the investor, representing a major opportunity for the company to add massive revenues and improved profitability in the coming years.

Beyond this specific agreement, KM expects SMCI to continue riding the surging AI wave, which shows no indication of slowing down. The investor notes that hyperscalers such as Microsoft, Google, and Amazon have all reiterated their capex investment plans for 2025.

In other words, SMCI is well-placed to continue growing in the years ahead.

“I think that the management does (a) great job to increase AI exposure, which will highly likely help in building more value for shareholders,” concludes KM Capital, who rates SMCI a Strong Buy. (To watch KM Capital’s track record, click here)

Wall Street is also feeling pretty good about SMCI. With 6 Buy, 5 Hold, and 1 Sell ratings, SMCI enjoys a Moderate Buy consensus rating. However, the recent jump in its share price has gone further than most analysts had forecast, leaving its 12-month average price target of $40.17 with a downside of almost 11%. (See SMCI stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.