TLDR
- SMCI shares rose 4.83% to $43.19 on Tuesday, marking the second consecutive day of gains
- Stock remains 57.41% below its 52-week high of $101.40 reached in June 2024
- Q3 2025 revenues dropped 19% quarter-over-quarter with gross margins falling from 11.8% to 9.6%
- Top investor Michael Wiggins De Oliveira rates SMCI a Strong Buy despite recent challenges
- Wall Street maintains Moderate Buy rating with average price target of $40.83
Super Micro Computer shares climbed 4.83% to $43.19 on Tuesday during a positive trading session for the broader market. The S&P 500 Index gained 0.58% while the Dow Jones Industrial Average rose 0.51%.
This marked the second straight day of gains for SMCI stock. The company’s shares outperformed several competitors in the technology sector.
HP Inc. rose 1.89% to $25.38 during the same session. Intel Corp. gained 2.79% to $20.29, while Digi International Inc. increased 2.56% to $33.25.
Trading volume reached 41.4 million shares, which was 10.3 million below the 50-day average of 51.7 million. The lower volume suggests the price movement occurred with less participation than typical.
Despite Tuesday’s gains, SMCI remains well below its recent peak. The stock closed 57.41% short of its 52-week high of $101.40, which it achieved on June 20th of last year.
Mixed Financial Performance
The company’s recent quarterly results showed some challenging metrics. Q3 2025 revenues declined 19% from the previous quarter, creating concern among some investors.
Gross margins also compressed during this period. They fell from 11.8% in the prior quarter to 9.6% in Q3 2025.
These financial headwinds occurred despite the company’s position in the growing AI server market. The revenue decline contrasted with expectations for growth in artificial intelligence infrastructure.
The company previously faced corporate governance issues that brought delisting risks. However, those concerns have moved into the background as the company addressed compliance requirements.
Investor Optimism Remains
Top-rated investor Michael Wiggins De Oliveira maintains a positive outlook on SMCI despite recent challenges. He rates the stock a Strong Buy and sees value in the current price levels.
“Despite the noise—missed targets, some governance baggage, and a bit of execution risk—Supermicro’s financial setup looks strong,” Wiggins De Oliveira stated. He ranks among the top 4% of TipRanks’ stock professionals with a 5-star rating.
The investor highlights the company’s role in AI infrastructure development. SMCI often ships systems first using the latest chips from Nvidia and Advanced Micro Devices.
$SMCI is a representative beneficiary of Nvidia and has some coupling with it.
Yesterday, it rose partly because Nvidia went up, and it is filling the gap from the Middle East investment news while preparing for another rise.
It’s currently within the Ichimoku cloud, so its… pic.twitter.com/vNxcLP2cyH— The Crocodile King (@eyeofjaguar) June 4, 2025
Wiggins De Oliveira points to the company’s building block design approach. This allows customers to configure systems that match their specific requirements.
He also mentions the company’s second-generation cooling system. This technology helps data centers operate more efficiently by reducing energy and water consumption.
Even if SMCI misses its $40 billion revenue target for fiscal 2026, the investor sees upside potential. Revenue of $25 billion would still represent 15% year-over-year growth according to his analysis.
The current valuation appears attractive to Wiggins De Oliveira. At 22 times forward free cash flow, he considers the stock undervalued for a profitable business in a major technology trend.
Wall Street analysts generally agree with the positive sentiment. The consensus rating stands at Moderate Buy based on 6 Buy ratings, 5 Hold ratings, and 1 Sell rating.
The average 12-month price target sits at $40.83, representing about 5% downside from Tuesday’s closing price. This suggests analysts see the stock as fairly valued at current levels.
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