Super Micro Computer’s preliminary December quarter results and lackluster March quarter guidance may not seem impressive at first glance, but according to Northland’s Nehal Chokshi, an analyst in the top 1% of Wall Street stock pros, there is a bigger opportunity ahead for this AI server maker.
Chokshi points to delays in Nvidia’s next-gen Blackwell chips and the time needed for SMCI’s GPU-as-a-Service (GPUaaS) clients to complete their liquid-cooled datacenter buildouts as reasons for the weak March outlook. However, he remains confident that these challenges will clear by the June quarter, with SMCI revising its FY25 revenue guidance to $23.5 billion to $25 billion.
Looking ahead, SMCI anticipates revenues in FY26 could reach $40 billion, representing approximately 60% year-over-year growth. Chokshi believes demand for SMCI’s Blackwell rack scale solutions remains strong, citing reasons such as feedback from AMZN’s earnings call and Coreweave’s press release.
With the company poised to benefit from the GenAI boom, Chokshi rates SMCI stock an Outperform (Buy) and raises his price target to $57, implying a 35% upside in the coming months. While the consensus view is a Moderate Buy with some analysts suggesting the stock has overshot, it will be interesting to see how analysts adjust their ratings or targets in the near future.
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