CFRA is taking on a more bullish view of Super Micro Computer ahead of its second-quarter earnings release. The firm upgraded shares of the data center company to buy from hold. Analyst Shreya Gheewala also lifted her price target by $9 to $48, indicating nearly 13% upside. “SMCI’s dominant position in liquid cooling and advantage with NVIDIA Blackwell B200 rack solutions showcases its AI infrastructure leadership. SMCI’s confirmed February 25 financial filing deadline, coupled with its end-to-end datacenter solutions and competitive pricing, positions it to capture surging hyperscaler demand,” she wrote. “Near-term margin recovery to mid-teens and market share gains appear likely given SMCI’s proven rapid development capabilities and expanding product portfolio.” SMCI 1Y mountain SMCI 1Y chart However, Gheewala added that “critical risks” such as potential customer erosion from reputation damage and December rumors of privatization could cause further uncertainty for Super Micro. “While strong guidance could offset concerns, this high-risk/reward opportunity requires careful investor consideration,” she wrote. Shares of Super Micro Computer have tumbled 42% in the past 12 months. The stock surged 18% on Monday ahead of Super Micro’s second-quarter earnings release, slated for after Tuesday’s closing bell. Analyst sentiment on the stock is mixed. Of the 11 who cover Super Micro, three rate it a buy and six have a hold rating, per LSEG. The remaining two analysts have an underperform rating on shares.
