From 24/7 Wall St. · Alex Sirois · · 1m 20s
Super Micro Computer Stock Looks Cheap for AI Growth
Super Micro Computer trades below analyst targets despite strong Q4 results, with a 30% earnings jump and AI infrastructure demand driving potential upside.
In brief
Super Micro Computer trades below analyst targets despite strong Q4 results, with a 30% earnings jump and AI infrastructure demand driving potential upside. Super Micro Computer's stock trades at $39.09 below analyst price targets but shows strong AI infrastructure demand with a 30% earnings estimate jump. Originally…
Q4 Results Blowout
Super Micro Computer posted a Q4 with revenue up 93% year over year and non-GAAP EPS of $1.70, far exceeding expectations.
“Non-GAAP EPS hit $1.70 versus $0.9575 consensus”
Earnings Estimate Jump
Analyst price targets surged 30% in a month after Super Micro Computer guided fiscal 2027 revenue to nearly double fiscal 2026 levels.
“Fiscal 2027 revenue guidance of $65 billion to $72 billion”
Stock Trades Below Targets
Super Micro Computer shares trade at $39.09, below the average analyst price target of $42.38, despite strong earnings.
“Shares currently trade at $39.09 against an average analyst price target of $42.38”
Bull Case: AI Demand
The company's AI server infrastructure is driving a potential revenue ramp from $39 billion to $72 billion by fiscal 2027.
“Bull thesis rests on a fiscal 2027 revenue ramp that would take the business from $39 billion to as much as $72 billion”
Bear Case: Margin Risks
Management flagged that 75% of the gross margin improvement came from non-recurring factors, with Q1 fiscal 2027 gross margin expected to drop to 10.4%.
“Q1 fiscal 2027 gross margin is guided to just 10.4% to 10.8%”
CEO Selling Activity
CEO Charles Liang and Director Sara Liu each sold 100,000 shares at $40.00 on September 4, 2026, signaling caution.
“CEO Charles Liang and Director Sara Liu each sold 100,000 shares at $40.00 on September 4, 2026”
Key Watch Points
Q1 fiscal 2027 results, gross margin above 11%, and board review resolution are critical for the stock's next move.
“Watch Q1 fiscal 2027 results against the $1.01 to $1.10 non-GAAP EPS guide”
The key point
Super Micro Computer's stock trades at $39.09 below analyst price targets but shows strong AI infrastructure demand with a 30% earnings estimate jump.
