Northland Maintains Buy, But Can Super Micro's (SMCI) AI Server Momentum Last?

Super Micro Computer Inc. (NASDAQ:SMCI) is one of the best performing data center stocks to buy now. On September 17, Northland Securities analyst Nehal Chokshi reiterated a Buy rating on Super Micro with an unchanged price target of $59, highlighting continued confidence in the company’s growth trajectory.

The call followed Bernstein SocGen analyst Mark Newman’s initiation of coverage a day earlier with a Market Perform rating and a $46 target, citing concerns around slowing growth, aggressive guidance, and weak cash conversion despite Super Micro’s strong recent performance. According to the analyst, Super Micro has been one of the notable growth stories in the sector, reporting 46.6% revenue growth over the last 12 months.

With the recent spate of cautious updates, sentiment on the stock remains mixed, with only about a third of analysts rating the stock a Buy after its nearly 50% year-to-date rally.

That said, on the operational front, the company continued to advance its product lineup. On September 11, Super Micro announced the broad availability of its NVIDIA Blackwell Ultra solutions, including Plug-and-Play NVIDIA HGX B300 systems and GB300 NVL72 racks. These offerings are pre-validated at system, rack, and data center scale, designed to accelerate deployment and deliver industry-leading performance and compute density.

Super Micro Computer Inc. (NASDAQ:SMCI) designs and manufactures high-performance servers and storage systems optimized for AI, cloud, and enterprise computing.

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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Disclosure: None. This article is originally published at Insider Monkey.