This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Loop Capital has been one of the most consistently bullish voices on the prospects of Super Micro Computer (NASDAQ: SMCI), a leading retailer of liquid-cooled AI racks.
Yesterday, the global investment services firm won a resounding vindication for its unswerving bullish stance on SMCI, when the latter managed to avoid a stock delisting by filing its requisite annual report for FY 2024 just minutes ahead of a looming deadline from the Nasdaq exchange.
Now, Loop Capital is out with a fresh investment note on Super Micro Computer, taking a well-deserved victory lap of sorts after the roller-coaster of the past few hours.
To wit, Loop Capital analyst Ananda Baruah notes at the outset that he is again hiking his price target for SMCI shares:
"We’re raising our PT for the third time in five weeks (to $70 from $50 from $40) and reiterating our Buy rating ..."
While explaining his rationale behind this third price target hike, Baruah notes that Super Micro Computer "remains an important company in an important space with both special situation catalysts (yesterday’s announcement of becoming SEC filing current) and fundamental as GB200 & GB300 (Blackwell) ramp heading into summer and key customers get into full swing (Tier 2 CSPs)."
Also, Baruah thinks that Super Micro Computer's two biggest customers (NVIDIA and CoreWeave) have "huge" plans for 2025 and that it is inevitable that SMCI will benefit. Of course, the retailer of servers and AI racks also maintains a close association with AMD.
Meanwhile, as stated earlier, Super Micro Computer has now filed its annual report for the year that ended on the 30th of June, 2024, on the requisite Form 10-K. It has also filed its quarterly financial statements for the periods that ended on the 30th of September and the 31st of December on the given Form 10-Qs. As such, the company is now back in compliance with Nasdaq exchange's requirements for continued listing.
As a refresher, Super Micro Computer delayed the filing of all financial statements in August 2024, when a damning report from Hindenburg Research alleged widespread accounting malfeasance, prompting SMCI to halt all financial filing activity with the SEC in a bid to conduct an extensive internal control audit. SMCI suffered another major blow in October when Ernst & Young, the firm's designated auditor, resigned, citing concerns around corporate governance and the independence of the board.
Bear in mind that SMCI now expects to earn $40 billion in full-year revenue in FY 2026 vs. Wall Street's consensus estimate of just $29 billion.
As per a tabulation by Goldman Sachs, Super Micro Computer currently has the ability to produce around 1,500 DLC AI server racks, with significant spare capacity for increased production. For instance, the company's Taiwan facility is currently sitting at 60 percent capacity utilization, while its American facility is at 55 percent utilization. What's more, Super Micro Computer's Malaysia factory has barely ramped-up, currently sitting at just 1 percent capacity utilization.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
