Mizuho Maintains a Neutral Rating on Super Micro Computer, Inc. (SMCI)
Quick Take
Mizuho keeps a neutral rating on Super Micro Computer, Inc. amid market fluctuations.
Key Points
- Mizuho cites market volatility as a concern.
- No changes in earnings estimates for SMCI.
- Focus remains on competitive positioning in the sector.
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On May 12, Mizuho analyst Vijay Rakesh raised Super Micro Computer, Inc. (NASDAQ:SMCI)’s price goal to $36 from $30. It maintained a “Neutral” rating on the shares. The analyst pointed out that agentic AI demand is fuelling server growth as well as increasing semiconductor estimates after the March quarter.
Separately, on May 6, Reuters reported Super Micro Computer, Inc. (NASDAQ:SMCI) forecast fourth quarter revenue of $11 billion to $12.5 billion, exceeding LSEG estimates of $11.07 billion, and projected adjusted EPS of $0.65 to $0.79 compared to expectations of $0.55. It sent shares up 18% in extended trading.
CEO Charles Liang said on the post-earnings call that demand remained strong throughout data center and cloud products. The company reported revenue of $10.24 billion in the third quarter, growing more than 122% year over year, but missed analyst estimates of $12.33 billion, Reuters said.
Photo by Javier Esteban on Unsplash
Liang added that sites in Taiwan, Malaysia, and the Netherlands are “ramping up aggressively,” while CFO David Weigand said “there has been no change in allocations” with vendors.
Super Micro Computer, Inc. (NASDAQ:SMCI) distributes and manufactures information technology solutions, as well as other computer goods. Its products include twin solutions, MP servers, GPU and coprocessor, MicroCloud, AMD solutions, power supplies, SuperServer, storage, motherboards, chassis, super workstations, accessories, SuperRack, and server management products.
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READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
— Originally published at finance.yahoo.com
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