Needham Hikes SMCI Price Target to $60 Despite Earnings Miss: What Investors Should Know

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the High Flying AI Stocks This Week. On August 6, Needham analyst N. Quinn Bolton raised the price target on the stock to $60.00 (from $39.00) while maintaining a Buy rating. The rating affirmation comes despite SMCI fourth-quarter fiscal 2025 results falling short of market expectations.

The firm discussed the reason that led to the earnings miss.

“The miss was attributed to a lack of access to sufficient capital, which hindered the company’s ability to accelerate to volume production. The limited access to capital was due to the prior delay of the company’s 10-K filing, which has since been filed.”

Besides capital constraints stemming from delayed 10-K filing, specification changes from a new key customer led to revenue recognition delays.

“Additionally, a new key customer had specification changes that further delayed the recognition of revenue. In the near term, NG gross margin is expected to be under pressure due to larger deals and tariff costs.”

Regardless, the firm is still optimistic about the stock.

“However, we believe margins should improve in the upcoming quarters as the company ramps its DCBBS solutions and targets new growth markets.”

Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide.

While we acknowledge the potential of SMCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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