SMCI posted a 77% EPS beat and $11 billion in Q4 revenue, yet shares closed flat despite a $42.21 price target implying 34% upside. SMCI's forward P/E of 10 on 93% revenue growth looks dramatically cheaper than Dell's P/E of 25 and HPE's P/E of 12. A board review of export-control transactions and negative $6.8 billion in operating cash flow are the primary risks threatening the bull case.
It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Super Micro Computer (NASDAQ:SMCI) posted a 77.55% EPS beat on $11.12 billion in Q4 revenue, guided fiscal 2027 sales to $65 billion to $72 billion, and disclosed record backlog entering fiscal 2027. Shares closed essentially flat. That gap between fundamentals and price is where our model finds opportunity.
Our 24/7 Wall St. price target for Super Micro is $42.21, implying 33.58% upside over the next 12 months with a 90% confidence score. The recommendation is buy, though caveats around cash flow and the ongoing board review of export-control transactions keep this from being a slam dunk. SMCI is down 30.09% over the past year but up 11.62% over the past month and 7.96% year to date.
Shares sit 36% below the 52-week high of $58.78. Q4 delivered revenue of $11.12 billion (+93.2% YoY), non-GAAP EPS of $1.70, and gross margin recovery to 17.5% from 9.5% a year ago. CEO Charles Liang credited "a richer enterprise customer mix and broader adoption of our optimized Data Center Building Block Solutions".
Full-year operating cash flow was negative $6.8 billion on working capital build. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts.
See for yourself by clicking here now. The bull case starts with $60 billion-plus in FY2026 new orders and Liang's guidance for $65 billion to $72 billion in FY2027 revenue. If margins hold near the 17.5% Q4 level, non-GAAP EPS could push meaningfully above the $3.96 forward consensus.
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