Citi Starts Super Micro Computer (SMCI) at Neutral

Citi analyst Asiya Merchant initiates coverage on Super Micro Computer (NASDAQ: SMCI) with a Neutral rating and a price target of $39.00.

The analyst comments: "We initiate coverage on Supermicro with a Neutral/High Risk rating and $39 target price representing ~12% ETR. With 8% of AI server revenue share, Supermicro remains one of the leading players to GPU-as-a-Service cloud providers and enterprises, and we expect Supermicro to continue to benefit from broader secular trends in AI-driven infrastructure. However, our positive view is counterbalanced by an increasingly competitive AI Server landscape pressuring margins. Following a volatile 2023 and 2024 that saw significant multiple expansion (AI boom and strong yy growth) and contraction (margin pressures, SEC filing delays), shares are currently trading at 9-10x NTM PE, below is 5-year median (11-12x), which we believe is warranted and reflects the current macro-related (tariff uncertainty) and competitive intensity concerns."

For an analyst ratings summary and ratings history on Super Micro Computer click here. For more ratings news on Super Micro Computer click here.

Shares of Super Micro Computer closed at $35.81 yesterday.

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