The technology sector in the United States has been the center of most of the attention and price action in the stock market. However, one stock in the semiconductor industry fell significantly behind its peers. While other names like NVIDIA Co. (NASDAQ: NVDA) led the way in gains and market preference, names that are just as important in this ecosystem saw just the opposite treatment from the market.
However, there is an advantage to this fallout, which is where Super Micro Computer Inc. (NASDAQ: SMCI) comes into play as one of the best opportunities in this space. With bigger companies carrying most of the weight in the industry, as institutions are all inside companies like NVIDIA today, these are now indirectly tied to whatever the S&P 500 does in a broader sense.
By falling out of favor in recent months, Super Micro Computer stock gives investors the advantage of being relatively agnostic to what happens in the broader market. As bullish as this may be, there are other fundamental reasons for this company to be a safer name than what its recent price action may suggest, and its international presence is one of the biggest factors.
More Adoption for Super Micro’s Services
The first impact or benefit of growing artificial intelligence growth and adoption worldwide is a breakout in demand for semiconductors and other chip components. However, not everyone is able to spot some of the activities that come after these chips are put to work.
Data centers are expanding their global footprint, particularly in countries with rapidly expanding needs for artificial intelligence and the benefits this technology brings. One of them is Japan, which chose Super Micro Computer to provide its data centers with the company’s liquid-cooled artificial intelligence SuperClusters.
Adopted by international firms as well as domestic ones, Super Micro shows investors how important its business and service are inside the broader technology sector and in the success of artificial intelligence’s growth globally. With this in mind, the currently bullish outlooks for the stock shouldn’t come as a surprise to investors.
As of March 2025, three different analysts decided that the view on Super Micro Computer stock was clear enough to start initial coverage on it. Those from Rosenblatt Securities, Northland Securities, and even Barclays decided to step in with a wide range of valuations, all calling for double-digit upside for the company.
The lowest valuation, from Barclays, calls for a $59 per share valuation, while the highest, from Northland Securities, would land Super Micro Computer at around $70 per share. These two imply a respective 39.8% to 65.8% upside potential from where the stock trades today.
The Risk-to-Reward Favors Super Micro Computer Buyers
Considering this new view from Wall Street analysts, the fact that the stock now trades at 35% of its 52-week high, and analysts have become so confident in the company’s potential upside, investors can safely assume that the risk-to-reward ratio is definitely in favor of those looking to buy into Super Micro Computer stock.
This article will break down some of the other reasons why Super Micro Computer stock might be a great name to consider in most portfolios today. Its stock price has recently outperformed the S&P 500 during a tumultuous start to 2025.
The reason for its outperformance can be pinned to its financial growth, which can be credited in part to the company’s growing international presence. However bullish this may seem, these recent financial results reflect the past, and investors now will have to look to the future of the company’s expectations to figure out whether it is worth buying into.
This is where earnings per share (EPS) forecasts from Wall Street come into play. As of the first quarter of 2025, analysts think that Super Micro Computer could surprise investors with a net EPS of $7.70 in the second quarter of this year.
Compared to today’s $0.62 in EPS, the massive jump in profitability and bottom-line earnings can’t even begin to describe how much more upside there could be in this company. This leads some to believe that even today’s analyst targets (as bullish as they are) may not be even close to what could become a reality under these EPS scenarios.
A final check for bulls out there in Super Micro Computer can be the latest level of institutional buying activity, especially the recent $149.3 million stake taken by Northern Trust as of February 2025. This sudden buy-in, as the stock shows resiliency during a market-wide sell-off, gives investors the confidence they need to get behind this name.
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The article "Super Micro's International Presence Makes It a Winning Stock" first appeared on MarketBeat.
