May 19 - Super Micro Computer (SMCI, Financial) surged more than 40% over the past week, ignited by a major agreement with Saudi Arabia-based DataVolt.
The multi-year deal, worth around $20 billion, will see Super Micro deliver high-density GPU systems, modular server racks, and storage solutions to support the construction of hyperscale AI campuses. Initial projects will roll out in Saudi Arabia, with future expansion planned in the United States.
The partnership comes just weeks after Super Micro slashed its fiscal Q1 2025 outlook, citing weaker enterprise demand and purchasing delays. That warning sent the stock below $30, marking its lowest level in months.
Investors are now reassessing the stock's trajectory. The DataVolt deal, coupled with improving sentiment tied to easing U.S.-China trade tensions, has reignited optimism around Super Micro's role in the AI infrastructure space.
SMCI is now trading closer to the $50–$60 range. Technical traders are eyeing key resistance at the 50-week and 100-week moving averages, which, if breached, could support continued gains in the near term.
Is SMCI Stock a Buy Now?
Based on the one year price targets offered by 14 analysts, the average target price for Super Micro Computer Inc is $39.94 with a high estimate of $73.00 and a low estimate of $15.00. The average target implies a downside of -13.46% from the current price of $46.15.
Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $68.83, suggesting a upside of +49.14% from the current price of $46.15. For deeper insights, visit the SMCI Forecast page.
