Super Micro Computer (SMCI, Financials) received a price target boost from Mizuho to $40, up from $32, citing strong positioning in AI infrastructure. Despite the upgrade, the stock is already trading above the revised target after a sharp weekly rally.
Mizuho kept its Neutral rating but raised its valuation basis to 12.5x projected 2026 earnings, from 10x previously. The firm expects Super Micro to maintain its role in the expanding AI server market, which has fueled 82.5% revenue growth over the past year.
Super Micro's recent partnership with DataVolt to develop AI campuses in Saudi Arabia could involve up to $20 billion in advanced liquid-cooled infrastructure. The company also introduced modular Data Center Building Block Solutions, aimed at reducing costs and improving energy efficiency.
Other analysts are split. Loop Capital has a Buy rating with a $70 target. Citi stays Neutral at $37, and Goldman Sachs holds a Sell rating at $24.
While contract terms with DataVolt are still being finalized, the deal may enhance Super Micro's market share in global AI infrastructure.
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