Supermicro shares surged by over 6% intraday on Wednesday, following the company’s strong sales outlook for 2026. The server maker announced its revenue estimate for 2025 has been lowered to $23.5 billion to $25 billion, but predicts significant growth of over 60% year-over-year to $40 billion in 2026.
Analysts at JPMorgan and Wedbush raised their price targets for the stock after Supermicro’s announcement, citing “increased conviction” that the company will meet its regulatory filing deadline. The Nasdaq’s February 25 deadline is crucial as it could determine whether Supermicro avoids delisting.
JPMorgan analysts see a “nice upside surprise” in Supermicro’s growth prospects but warned it may be too early to underwrite such an aggressive target. Wedbush, however, maintains a neutral rating and raises its price target to $40 from $24.
The company has been working on resolving accounting concerns, which have raised delisting worries. However, an independent special committee found no substantial concerns about the integrity of Supermicro’s senior management in December.
With shares now at $40.98, they remain below their peak in 2022 but have more than regained some lost value since the end of last year. The strong sales outlook and regulatory filings may boost investor confidence, although caution is still warranted due to past growth concerns.
Source: https://www.investopedia.com/supermicro-stock-surges-on-hopes-of-an-ai-fueled-comeback-11678450