Super Micro Computer (NASDAQ: SMCI) Stock Price Prediction and Forecast (May 2025)

Super Micro Computer Inc. (NASDAQ: SMCI) stock has its bullish supporters, some of whom feel it can withstand global trade issues and that it may be one of the best artificial intelligence (AI) stocks this year. But it is also a target of short sellers, with more than 21% of shares held short. Supermicro’s most recent quarterly results were better than expected, but it reduced its guidance due to tariffs and economic uncertainty.

The artificial intelligence-fueled tech rally sputtered as tariff concerns have grown, but it is likely to continue at some point. Companies that can diversify to address the manifold demands the industry faces ultimately are poised to profit. Supermicro is one of those companies. The San Jose-based tech firm specializes in high-performance and high-efficiency servers, but it also provides software solutions as well as storage systems for data centers and enterprises focusing on cloud computing, AI, 5G, and edge computing.

Nonetheless, analysts continue to expect big upside potential for the tech stock. Hindsight is 20/20, and all that matters now is how Supermicro will perform going forward. So 24/7 Wall St. has undertaken analysis to provide investors — and potential investors — with an idea of where this stock could head over the next five years.

Supermicro’s Recent Performance

Shares of Supermicro have been particularly rewarding to shareholders in the recent past, as they exploded by gaining 3,096% in the five years between August 2019 and August 2024. The following table summarizes its share price, revenues, and profits (net income) from 2014 to 2024:

*Revenue and net income in $billions

In the past decade, Supermicro’s revenue grew by more than 385% while its net income increased by just over 1,085%. Despite seeing a minor revenue contraction in 2020 with a decrease of 4.6%, its shares still managed to increase year-over-year on still-growing net income. As the IT services provider looks forward to the second half of the decade, we have identified two key drivers that are likely to have an impact on its growth metrics and stock performance.

Key Drivers of Supermicro’s Stock Performance

Enormous Industry Growth

According to Statista, global revenues generated by the IT services industry are $1.420 trillion. Looking forward, that figure is forecast to balloon to $1.879 trillion worldwide by the end of 2029, which is good for a market increase of 32.32%. Most of this growth will be driven by demand for services and solutions that support AI, but other drivers include digital transformation and cloud IT infrastructure — both of which are major business segments for Supermicro. The company has a global reach, with more than half of its revenue being produced from outside of the United States, meaning it will play a central role in meeting that global growth demand.

Shrinking Margins to Increase AI Production Capacity

Supermicro finished the fiscal year 2024 with a sizable reduction in its margins. And while investors would usually interpret that negatively, it makes perfect sense for the company. In 2024, gross margins shrink to 14.2% from 18.1% in fiscal 2023. The main driver is increasing production of its server solutions to deploy AI graphics processing units (GPUs) — like those produced by tech behemoths Nvidia Corp. (NASDAQ: NVDA) and Advanced Micro Devices Inc. (NASDAQ: AMD).

As a result, the company is positioning itself for growth alongside increased demand for GPUs, which ultimately will cause Nvidia and AMD’s successes to trickle down to Supermicro. Most recently, 70% of Supermicro’s revenue was from sales of its GPU server solutions for AI implementation. The market for direct liquid cooling (DLC) servers — which Supermicro provides — is expected to grow from $5 billion in 2024 to $21 billion in 2029.

Supermicro Price Prediction in 2025

The consensus median one-year price target for Supermicro has slipped to $43.67, which still represents 32.5% potential upside over the next 12 months. The 17 analysts covering Supermicro stock have a consensus Hold recommendation. Just five of them have Buy ratings.

24/7 Wall St.’s 1projects Supermicro’s stock price to be $68.34 by year’s end, based on projected earnings of $3.35 per share in 2025.

How Supermicro’s Next Five Years Could Play Out

*Revenue and net income in $billions

At the end of 2025, we expect to see revenue, net income, and EPS rise by 89.16%, 63.41%, and 70.08%, respectively. As mentioned, that would result in a per-share price of $68.34 on a post-split-adjusted basis, which is 107.4% higher than where the stock is currently trading.

When 2026 concludes, we estimate the share price to be $79.87. This is based on modest revenue gains, an assumed EPS of $44.37, and a healthy projected P/E ratio of 18.

At the conclusion of 2027, we forecast a sizable jump in the stock price to $86.13 driven by $37.116 billion in revenue and $1.458 billion in net income.

By the end of 2028, we expect to see shares trading for $101.40, on revenues of $42.631 billion, net income of $1.881 billion, and an EPS of $67.60.

And at the end of 2029, Supermicro is forecast to achieve revenue of $50.154 billion and net income of $2.428 billion. That results in a per-share price of $118.86.

By the conclusion of 2030, we estimate an SMCI share price of $138.61, good for a 320.6% increase over today’s share price, based on an EPS of $106.62 and a P/E ratio of 13.

Here is a look at how it gets there:

Prediction: Super Micro Will Hit $100 in 2025

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