Super Micro Stock (SMCI) Gets a Price Target Hike from Mizuho’s Top Analyst

Super Micro Computer (SMCI), a key player in the AI server market, received a boost from Mizuho Securities’ price target hike. Top analyst Vijay Rakesh of Mizuho lifted the price target on SMCI stock to $40 from $32 on Friday, but maintained his “Hold” rating. The revised price target still implies a 13.33% downside potential from current levels.

The price target increase came shortly after Super Micro announced a $20 billion partnership with Saudi Arabian data center leader DataVolt. Revealed on May 15, the multi-year agreement focuses on developing GPU platforms and rack systems for DataVolt’s hyperscale campuses. Aimed at speeding up infrastructure deployment in the rapidly growing AI server space, the deal sparked a 19% jump in Super Micro’s stock, highlighting strong investor excitement.

Rakesh’s Views on SMCI Stock

The five-star analyst cited Super Micro’s strong position in the growing AI server market and its recent partnership with DataVolt as key drivers of potential long-term growth. The company has already delivered a notable 82.49% revenue increase over the past year, and analysts believe it’s well placed to benefit from continued momentum in AI infrastructure demand through 2026 and beyond.

However, Mizuho also pointed out some risks. The analyst noted that competition in the AI server market is heating up, which could make it harder for Super Micro to stay ahead. In addition, the profit margins in this segment are still low, which could limit how much the company earns from this fast-growing market.

Despite these challenges, Mizuho’s higher price target shows trust in Super Micro’s strategy and its ability to grow in the fast-moving AI server market.

Not Only Rakesh

Along with Rakesh, several analysts pointed to Super Micro’s strong foothold in the AI server space and rising demand for accelerated computing. Just last week, Raymond James’ Top analyst Simon Leopold initiated coverage on MSTR stock with an Outperform rating (equivalent to Buy) and a $41 price target. 

Leopold sees Super Micro quickly becoming a “near AI pure play,” with AI platforms making up nearly 70% of its revenue. He says the company stands out by offering custom, flexible systems at competitive prices. This focus on tailored solutions keeps Super Micro lean and attractive to hyperscale clients, helping drive its growth in the AI server space.

Is SMCI a Good Stock to Buy?

Currently, analysts remain divided on SMCI’s long-term stock trajectory, mainly due to the macro headwinds. On TipRanks, SMCI stock has a Moderate Buy consensus rating based on six Buys, five Holds, and one Sell rating. Also, the average Super Micro Computer price target of $40.83 implies 11.53% downside potential from current levels. Over the past year, SMCI stock has lost over 48.95%.

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