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Super Micro Computer (NASDAQ:SMCI) Monday was downgraded to Hold from Buy by Aletheia Capital, which further tweaked its price target to $650.
“We remain optimistic about the long-term AI opportunities. However, given the recent surge in share prices across the board, we have become more selective and are making changes to our stock selection and ratings,” said analyst Skye Chen.
“We cut SMCI, Taiwan-listed Wiwynn, and EMC to Hold on valuations, limited earnings revisions, and specific company considerations,” the analyst added.
The Hong Kong-based financial institution commented, “At the chip level, we recently upgraded NVDA and Micron to factor in the former’s potential opportunity in the Chinese market and benefit from its upcoming Blackwell GPU, while the latter profits from the sharp rise in contract memory prices and new supply of HBM to NVDA’s AI GPUs.”
Seeking Alpha’s Quant ratings recommended the SMCI as a Strong Buy, scoring a near-perfect 4.99 out of 5 on its growth and momentum prospects. The stock, however, got a D+ for valuation, compared to a C three months ago.
Meanwhile, about 11 sell-side analysts surveyed in the last 90 days rated SMCI as a Buy or higher. While another four marked the stock as a Hold.
Since the start of the year, Super Micro Computer has soared about 282%, while on a 12-month basis, the stock has skyrocketed over 960%.
