May 30 - Super Micro Computer Inc. (SMCI, Financial) shares slid nearly 3% to $39.7 on Friday afternoon, falling 57% back from a 52-week high of $101.40 amid broader tech sector pressure.
Despite trade-tariff uncertainties, SMCI finds support in its link to NVIDIA (NVDA, Financial) and the rising demand for Blackwell chips. As NVDA's new AI solutions gain traction, data centers require advanced servers and cooling, areas where SMCI specializes.
SMCI recently shook off past accounting concerns by installing a new auditing team, helping to restore investor confidence. That groundwork set the stage for a major win: the Saudi government tapped SMCI to build AI-focused data centers, signaling faith in its Foundry servers.
NVDA's strong quarterly results have left a gap in data-center maintenance, precisely the niche SMCI can fill. With NVDA's Blackwell chips fueling orders, SMCI may see further upside as AI infrastructure spending climbs.
For bulls, SMCI's role in supporting NVDA's Blackwell ecosystem offers a clear catalyst, even as tariffs and macro headwinds persist.
Is SMCI Stock a Buy Now?
Based on the one year price targets offered by 15 analysts, the average target price for Super Micro Computer Inc is $40.00 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a upside of +0.68% from the current price of $39.73.
Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $67.82, suggesting a upside of +70.72% from the current price of $39.73.
