Looking for a Dirt Cheap AI Stock With Massive Upside? 1 Analyst Firm Thinks Super Micro Computer Can Soar 66%.

Super micro computer (Nasdaq: smci) It is one of the most controversial stocks in Wall Street. After allegations of accounting errors last year, an external committee did not find any violations, and the company rented a new accounting company, which issued all the necessary financial statements to comply Nasdak Stock Exchange, Securities and Exchange Committee.

Although this was a wild flight of bottles to take investors, the stock is only 50 % higher than it was when it entered 2024, although it increased more than 300 % at the same time during the past 15 months. This looks like an arrow that can have a much greater value than the market realizes, especially since it still has a black eye of accounting allegations.

Northland Securities collided with its target price for Micro Super Micro (which is often called SuperMicro) to $ 70 per share, indicating 66 % of near Friday. This will be a tremendous gain for the stock, and any investor likes to have such a performance in a wallet.

But is this a realistic expectation of SuperMicro?

SuperMicro is another company that greatly benefits from the mutation of artificial intelligence. It makes parts of the server shelves that are home and cool graphics processing units. This may seem boring, but it is an important part of the artificial intelligence infrastructure (AI) that is built globally.

Most competitors in this field do not have a discrimination factor, but SuperMicro does so. Direct liquid cooling technology (DLC) allows graphics processing units (which produce a lot of heat) to be cooled with liquid instead of air. This may cost an increase in the introduction, but the administration estimates this technology providing its customers by 40 % in energy costs and occupying an area of ​​80 % less. Efficiency allows the shelves closer together because there is not much of the air flow needed to cool them.

One of the largest growth stimuli for SuiperMicro NafidiaNew GPU structure, Blackwell. DLC is designed from SuperMicro with Blackweell mode in mind, so, if the Blackweell NVIDIL’s graphics processing units are well sold and continue to spread, SuperMicro will benefit directly from it.

With the infrastructure movements of cloud calculations and cloud computing movements away from the end, SuperCicro still has a large space for growth, which we see now.

In the second quarter of the fiscal year 2025 (ending on December 31), the total SuperMicro sales reached 5.7 billion dollars, an increase of 55 % over the previous period. The administration provided a similar look to the third quarter, with revenues of between $ 5 billion and 6 billion dollars, about 43 % growth. This growth wave is expected to last for some time. CEO Charles Liang begins 23.5 billion dollars to $ 25 billion in fiscal year revenues 2025 and 40 billion dollars for the fiscal year 2026.