‘It’s Not a Straight Line,’ Says Top Investor About Super Micro Computer Stock

Super Micro Computer (NASDAQ:SMCI) offers investors an interesting test-case when it comes to risk and rewards.

The provider of AI server and storage solutions operates in the exceptionally lucrative AI field, and yet previous corporate governance issues placed the company on the cusp of being delisted from the Nasdaq stock exchange.

While the danger of delisting is now in the rearview mirror, a recent earnings report did not exactly delight investors. Indeed, its Q3 2025 revenues were down 19% from the previous quarter, while gross margins also fell from 11.8% to 9.6% sequentially.

So, which way are things headed? Top investor Michael Wiggins De Oliveira is ready to look beyond the previous issues and focus on the future.

“Despite the noise—missed targets, some governance baggage, and a bit of execution risk—Supermicro’s financial setup looks strong,” asserts the 5-star investor, who is among the top 4% of TipRanks’ stock pros.

Wiggins De Oliveira explains that Super Micro Computer is a major player in the AI bonanza, and their mix-and-match “building block” designs help customers build “exactly” what they are looking for. Moreover, their second-gen cooling system allows data centers to run more efficiently by cutting decreasing energy and water usage.

“When it comes to AI, Supermicro is right in the thick of it. They’re often the first to ship systems using the latest Nvidia and Advanced Micro Devices chips—the key engines behind today’s AI boom,” adds Wiggins De Oliveira.

Even if the company fails to hit its revenue estimate of $40 billion for fiscal 2026, Wiggins De Oliveira thinks there is plenty of buffer for investors. For instance, $25 billion in revenues in fiscal 2026 – quite a large haircut from current guidance – would still equate to 15% year-over-year growth, which “keeps Supermicro on a healthy growth path.”

“For a business this profitable, sitting at the center of a major tech trend, trading at just 22x forward free cash flow—this looks like a steal to me,” adds Wiggins De Oliveira.

While progress might not be a straight line (“it never truly is”), the investor concludes, SMCI is moving in the right direction.

Wiggins De Oliveira is therefore rating SMCI a Strong Buy. (To watch Wiggins De Oliveira’s track record, click here)

Though not quite as bullish, Wall Street is also on board. With 6 Buys, 5 Holds, and 1 Sell, SMCI enjoys a Moderate Buy consensus rating. Its 12-month average price target of $40.83 has a downside of ~5%. (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.