Super Micro Computer has a $60 billion problem. The good kind. Needham & Company just reaffirmed its Buy rating on SMCI with a $46 price target, pointing to an order backlog so large it required the company to raise $7 billion just to start filling it.
The call comes ahead of Super Micro’s fiscal Q4 2026 earnings release, scheduled for August 11. And the numbers Needham is banking on tell a story of a company riding the AI infrastructure wave with increasingly favorable economics.
The margin story is the real headline
Here’s the thing about Super Micro’s bull case: it’s not just about revenue growth anymore. The company’s expected Q4 gross margins have jumped to between 15-17%, which sounds modest until you compare it to prior guidance of 8.2-8.4%.
Needham’s maintained price target of $46 reflects confidence that these margin improvements aren’t a one-quarter anomaly but rather a structural shift in how AI infrastructure gets priced and sold.
