Super Micro Computer Inc (NASDAQ:SMCI) has seen its price target raised by Mizuho from $40 to $47, despite maintaining a Neutral rating on the stock.
What Happened: Mizuho has kept its revenue and earnings per share (EPS) estimates for the June quarter unchanged at $6.00 billion and $0.45, respectively. These figures are in line with the consensus estimates of $6.00 billion and $0.44, as per Investing.com.
SMCI stock closed the Wednesday session at $48.74, according to data from Benzinga Pro.
Mizuho also lowered its fiscal 2026 projections, cutting revenue estimates from $31.4 billion to $30.0 billion and EPS from $3.19 to $2.89. For fiscal 2027, the firm revised its outlook from $38.6 billion in revenue and $4.42 EPS to $36.2 billion and $3.68 EPS.
The updated price target reflects a higher fiscal 2026 estimated P/E multiple of 15.7x, raised from the previous 12.5x. The firm attributed the revision to sustained AI server demand through 2026, solid order activity from Tier 2 cloud service providers and strong sovereign demand linked to Datavolt during President Donald Trump's Middle East visit.
Why It Matters: Earlier in June, Super Micro Computer raised $2 billion through private convertible debt with a 35% conversion premium. The company announced that a part of the proceeds from this offering would be used for capped call transactions, effectively limiting the number of new shares issued.
Following this, the company’s stock rallied, after a 9.7% fall, suggesting that investor confidence remained high due to these strategic announcements. The raised price target by Mizuho further underscores the company’s strong position in the AI server market and robust demand from Tier 2 cloud service providers.
Benzinga Edge Stock Rankings shows that SMCI had a strong price trend over the short, medium and long term. Its momentum ranking was moderate at the 54th percentile, whereas its growth ranking was strong at the 87th percentile; the details of other metrics are available here.
On a year-to-date basis, SMCI stock surged 62.20%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
