Super Micro Computer (SMCI, Financials) just got a price target boost from Mizuho's Vijay Rakesh, who raised it to $40 from $32—but kept a Neutral rating. Even with the hike, the new target suggests the stock could still fall about 13% from current levels.
The upgrade followed a major announcement: a $20 billion deal with Saudi Arabia's DataVolt to build GPU and rack systems for hyperscale AI campuses. That news sent the stock up 19%, as investors bet on Super Micro's growing role in AI infrastructure.
Rakesh pointed to strong momentum—AI now makes up about 70% of Super Micro's revenue, which has jumped 82% over the past year. But he also flagged concerns: competition is rising and margins remain tight, which could limit how much profit the company can squeeze from all this growth.
Not everyone is cautious. Raymond James analyst Simon Leopold started coverage with a Buy and a $41 target, calling SMCI a standout in the AI space.
