Rosenblatt Sees 45% Upside in Super Micro Stock Faizan Farooque Fri, October 16, 2026 at 4:22 PM EDT SMCI -9.86% NVDA -1.43% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
AI server maker Super Micro Computer Inc. (SMCI, Financials) may now be receiving some credit for resolving some of the challenges that have impacted on its price.
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Rosenblatt analyst Sajal Dogra reaffirmed a Buy rating and a $51 price target, suggesting around 45.5% upside from $35.09.His case isn't simply about AI demand.
Dogra said Super Micro has over $60 billion in new AI orders from more than 20 clients while the Vera Rubin platform from Nvidia is scheduled to accelerate by the January quarter.
That provides the organization with a solid demand background. The main concern has been one of trust.
For most of the past two years, Super Micro has been under pressure to answer questions about its financial reporting, internal controls and funding. Dogra thinks adding ex-Western Digital CFO Mark Long, and a clean audit for fiscal 2026, might help narrow that governance discount.
Margins remain the Achilles' heel. Rosenblatt sees gross margin around 11% in fiscal 2027.
The situation for investors is simple: there is currently a decent amount of demand for AI, but the company may need cleaner execution and greater margins before the value gap actually closes.
