Bernstein SocGen initiates Super Micro Computer stock with Market Perform rating

Investing.com - Bernstein SocGen Group initiated coverage on Super Micro Computer (NASDAQ:SMCI), a prominent player in the Technology Hardware industry with a market cap of $27 billion, with a Market Perform rating and a price target of $46.00 on Tuesday. According to InvestingPro data, the stock is currently trading near its Fair Value.

The research firm acknowledged Super Micro has been "one of the stand-out growth stories," with impressive revenue growth of 46.6% over the last twelve months, but expressed concerns about sharply decelerating growth and aggressive guidance from the company.

Bernstein SocGen also highlighted "cash conversion challenges" that make the business "more expensive than it looks" despite its growth profile.

The firm values Super Micro at 16 times its fiscal year 2027 earnings per share estimate, slightly above the company’s five-year average price-to-earnings ratio of 13.5x, implying an enterprise value of 0.72 times the firm’s estimated $37.6 billion in FY27 sales.

Bernstein SocGen noted that this valuation is high compared to a discounted cash flow analysis, contributing to its neutral stance on the stock.

In other recent news, Super Micro Computer has begun volume shipments of NVIDIA’s Blackwell ultra systems, including the NVIDIA HGX B300 and GB300 NVL72, designed to enhance AI model training and deployment. This development marks a significant step in delivering advanced AI infrastructure solutions globally. Additionally, Lambda has deployed Supermicro’s GPU-optimized servers, which include NVIDIA Blackwell-based systems, to expand its AI infrastructure. This collaboration aims to provide enterprise-grade AI compute solutions in the Midwest region. Meanwhile, Digi Power X announced that its subsidiary, US Data Centers, Inc., has achieved Tier 3 certification for its ARMS 200 modular data center platform, confirming its compliance with global standards for resilience and reliability. In financial matters, Digi Power X has filed its interim financial results for the three and six months ended June 30, 2025, along with management’s discussion and analysis. The filings also included certifications from the CEO and CFO, ensuring transparency and accountability in their financial reporting.

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