There have been few companies as stomach-wrenching to watch and own as Super Micro Computer (SMCI). Shares of the server and storage company had been on a tear, driven higher by expectations that artificial intelligence technology will spur a wave of investment in data centers and the necessary underlying technology like the cooling solutions Supermicro offers. 

To a large extent, this wave of investment has played out, and Super Micro has seen incredible top- and bottom-line growth in past quarters attributed to a surging backlog. 

Unfortunately, as investors can see above, Super Micro’s stock has been hammered from its 52-week high above $100, now trading at a little under $45 per share. 

That said, it’s not all doom and gloom for this company, at least according to Wall Street. Loop Capital just reiterated its “Buy” rating on SMCI stock, maintaining a $70 price target for the embattled server giant. Let’s dive into what to make of this price target, which implies nearly 60% upside potential, and whether it’s possible Super Micro hits this level before the end of the year.

Broader Analyst View of Super Micro Stock

Loop Capital is an outlier when it comes to Super Micro stock. 

The consensus analyst rating is “Moderate Buy,” but the mean price target for SMCI stock sits at $44.66, roughly where shares sit today. With Loop Capital on the high end with $70 and Susquehanna on the low end with a price target of $15, there is a wide range of forecasts for the embattled AI stock.  

While Super Micro has had its fair share of headwinds of late, from a short report to an investigation into the company’s accounting practices and potential Nasdaq Exchange delisting, these headwinds do now appear to be behind the firm. Accordingly, for those bullish on the growth of data centers and underlying technology, this stock’s recent decline could indeed turn out to be a buying opportunity.

What Do the Fundamentals Say?

It’s safe to say that Super Micro’s valuation has swung wildly over the past year. This stock went from one of the most overvalued names in terms of its price-earnings and price-sales multiples to one which looks downright cheap. 

A forward price-earnings ratio below 27 times and a return on equity above 20% do indicate that Super Micro Computer stock is attractive here. And with a price-sales ratio that has now dropped below 2x, so long as the company continues to produce robust top- and bottom-line growth, it’s hard to imagine a world in SMCI stock doesn’t appreciate over the long term. 

However, it is important to note that Super Micro disappointed the Street with its fiscal Q3 earnings and that investors in general have shied away from high-growth stocks in 2025 amidst global macroeconomic uncertainty. 

The question I think investors need to explore on their own is whether this discount more than compensates for this higher risk level, and if Super Micro’s long-term upside potential justifies a higher valuation. I’m in the “yes” camp, but others may disagree.