(SMCI) stock has risen 1.4% over the past week but fallen 14.4% over the past month and 32.2% over the past year. Wall Street’s analysts are neutral, with a consensus Hold rating and a 12‑month price target of $40.58, implying modest upside from the last closing price of $35.57.
Analyst Ruplu Bhattacharya of BofA Global Research reiterated a Sell rating on Super Micro Computer on October 21, 2026, while raising his price objective to $38.00 from $33.00. This new target still signals caution, as it reflects concerns about long‑term profitability even as revenue growth looks strong.
Bhattacharya highlights robust demand for AI servers and racks, noting that Super Micro positively preannounced first‑quarter fiscal 2027 revenue of $18.5‑19.5 billion versus prior guidance of $14.5‑15.5 billion. He now models about $80 billion in revenue for fiscal 2027 and $89 billion for fiscal 2028, with roughly 80% tied to AI, yet remains wary of how much profit the company can retain.
The key worry is margins: Super Micro expects gross margin of 12.0‑12.5% for the quarter, better than guidance but down sharply from 17.6% in the prior quarter. The analyst argues that pricing pressure in AI servers, higher component costs and large, lower‑margin deals could weigh on profitability, even as newer modular data‑center offerings (DCBBS) may help improve margins over time.
On the governance side, Bhattacharya notes the appointment of Mark Long, formerly CFO and Chief Strategy Officer at Western Digital, as Super Micro’s new CFO, which could help address past weaknesses in internal controls. This N‑star analyst ranks #2542 out of 12,469 on TipRanks, with a 53.61% success rate and 7.0% average return per rating. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.