Should I buy SMCI stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of SMCI for more than three years. Each month, thousands of users in Singapore rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by SMCI.

What is SMCI?

How much is SMCI stock?

The price of SMCI stock is rising this week. As of now, SMCI trades at USD 32.11 with a 24-hour decline of 1.14% but shows a weekly gain of 1.26%.

The stock’s beta is 1.36, indicating higher volatility, which investors in Singapore should consider when evaluating its potential for dynamic price movements.

Our full analysis on SMCI stock

We have thoroughly examined Super Micro Computer, Inc. (SMCI)’s latest financial results, alongside the equity’s remarkable journey and sectoral positioning over the past three years. Employing a rigorous, data-driven approach that integrates a variety of financial indicators, technical analysis signals, macroeconomic data, and real-time market intelligence—benchmarked against sector peers—we leverage proprietary algorithms to distil actionable insights. In this report, we consider a critical question: In light of its recent correction and strategic strengths, could SMCI once again represent an elite entry point into the global AI infrastructure value chain in 2025?

Recent Performance and Market Context

Stock Price Dynamics: Signs of Reset—A New Entry Point Emerging?

Over the last twelve months, SMCI’s share price has corrected sharply, declining 60.97% year-on-year to $32.11 as of May 9, 2025. This significant retracement contrasts with the preceding three-year period, during which SMCI appreciated exponentially on the back of surging demand for AI server infrastructure. Notably, even following this correction, the stock has rallied 30.95% over the past six months, evidencing renewed investor interest and volatility conducive to trading opportunities.

The 10:1 stock split instituted in October 2024 has further bolstered liquidity—average daily volume now stands at an exceptional 76.69 million shares, facilitating entry and exit for all classes of investors. While recent intraday and weekly movements have been mixed (down 1.14% over 24 hours, up 1.26% week-on-week), the persistence of robust turnover signals ongoing market confidence in SMCI’s underlying story.

Recent Positive Developments: Management Actions and Strategic Focus

• Management has proactively addressed board and leadership depth since December 2024, reinforcing governance at a critical inflection point.
• The company’s Q3 2025 revenue grew 19.5% YoY, defying the challenging backdrop that saw many hardware peers struggle to grow at all.
• Management is vocal in its confidence that delayed customer decisions for high-performance AI platforms are poised to convert into revenue over the next several quarters—a scenario that could trigger a potent re-rating catalyst.

Sector and Macroeconomic Tailwinds

• Global demand for data center and AI compute infrastructure continues to expand at double-digit rates, underpinned by accelerating adoption of generative AI, cloud migration, and 5G rollouts.
• Singaporean and regional investors in particular are well-positioned to benefit from SMCI’s expanded manufacturing operations in Asia, notably Taiwan, as customers seek supply chain certainty and hardware innovation.
• While certain short-term headwinds exist—tariff-related pressures and economic uncertainty—these are transitory when set against the size and scope of SMCI’s addressable market.

In sum, SMCI appears to offer a compelling opportunity for investors seeking exposure to digital infrastructure growth, backed by concrete company-driven positive developments and a sector poised for sustained expansion.

Technical Analysis

Key Technical Indicators: Building Foundations for a Reversal?

• Moving Averages: The share price ($32.11) is trading below its 20-day ($33.17), 50-day ($35.92), 100-day ($36.04), and 200-day ($40.57) simple moving averages, reflecting residual short-term caution after the rapid correction. However, with the steep selloff now fully digested, these levels frequently act as staging points for reversal trades when positive catalysts arrive.
• RSI (14): At 45.03, the Relative Strength Index sits in neutral territory, indicating the stock is neither overbought nor oversold. This sets up a favorable risk/reward profile for new positions, particularly if buying momentum returns.
• MACD: The Moving Average Convergence Divergence stands at -0.83—a modestly bearish reading, but not deeply negative. Any forthcoming inflection in momentum could pivot this indicator into a confirmed buy signal.

Support and Resistance: Attractive Setup for Asymmetrical Upside

• Technical Support: Immediate price floors cluster at $31.02, with further support at $29.57 and $28.59. These levels provide clear reference points for risk management and tactical accumulation.
• Resistance Zones: Short-term rallies may face initial resistance at $33.45, $34.43, and $35.88. A decisive break above these could unleash a new bullish phase, particularly given volumes and the stock’s history of sharp rebounds.

Momentum Structure: A Platform for Medium-Term Optimism

Despite lingering bearish sentiment in moving averages, the backdrop of high volume and RSI stabilization suggests that SMCI is in the process of building a durable technical base. For investors recognizing cycles of sentiment and rotation within the tech sector, these conditions frequently precede the re-emergence of substantial upside in leading growth equities.

Fundamental Analysis

Revenue Resilience Amid Market Turbulence

• Growth Trajectory: SMCI delivered $4.6 billion in Q3 FY25 revenue—a robust 19.5% annual rise—even as quarterly sequential revenue dipped, reflecting both sectoral demand volatility and temporary customer deferrals.
• Profitability: Margins compressed (gross margin down to 9.6% from 15.5% YoY), and net income was $109 million (down 73% YoY), giving some investors pause. However, these pressure points are consistent with a capital investment cycle and customer platform switches—a common pattern in hyper-growth infrastructure tech.
• Cash Position: The company remains exceptionally well-capitalized, with $2.54 billion in cash—supporting both organic and inorganic growth strategies as new AI/Cloud cycles kick in.

Valuation: Attractive Entry Point Versus Historical and Peer Benchmarks

• P/E Ratio: At 17.48 (TTM) and forward P/E of just 9.44, the valuation has reset to levels well below sector heavyweights, which often command multiples 2–4x higher.
• Price/Sales: The P/S ratio stands at an extremely attractive 0.94, underscoring value in the context of high-teens revenue growth.
• Analyst Target: The consensus 12-month price target of $43.67 implies a substantial 36% upside—reflecting confidence in both recovery prospects and long-term earnings power.

Strategic and Structural Advantages: Innovation at the Core

• Technology and Innovation: A first-mover in Data Center Building Block Solutions (DCBBS) and Direct Liquid Cooling, SMCI is fundamentally aligned with global themes of energy efficiency, accelerated computing, and next-generation server design.
• End-Market Diversification: Revenue mix spans cloud hyperscalers, AI research, enterprise data centers, and edge/5G infrastructure, insulating against single-sector downturns.
• Manufacturing Edge: With in-house prowess across motherboards, power, and chassis, executed in the US, Taiwan, and the Netherlands, SMCI is uniquely positioned to deliver for an increasingly diversified and demanding audience.

Balance Sheet and Capital Discipline

• Share Count/Float: 596.79 million shares outstanding, with a free float of 494.91 million and healthy institutional (51.63%) and insider (14.15%) ownership ensure broad-based confidence and market depth.
• No Dividend: As expected for a high-growth tech leader, free cash flow is steered towards innovation and portfolio build-out, maximizing capital velocity.

In aggregate, SMCI’s fundamentals remain robust, with the current valuation providing what appears to be a highly favorable risk/reward opportunity for investors with a forward-leaning investment horizon.

Volume and Liquidity

Trading Volume: Structural Support for Dynamic Valuation

SMCI’s remarkable average daily volume—76.69 million shares (post-split)—is a testament to deep liquidity, ensuring price discovery and ample flexibility for institutional and active retail participants alike. The October 2024 stock split expanded participation and tightened bid-ask spreads, further reinforcing SMCI’s suitability to both short-term and strategic investors.

Float Structure: Engineered for Agility

With over 82% of shares in the float and strong institutional sponsorship, the stock’s setup supports volatility in both directions when news breaks, but—crucially—also provides the ignition for swift upward moves on positive data, product launches, or revised guidance.

This liquidity profile also provides comfort for Singapore-based investors seeking exposure to the US tech sector without encountering the illiquidity risk that can accompany smaller names.

Catalysts and Positive Outlook

Pipeline for Growth: AI, Cloud, and Beyond

• Delayed Orders Poised to Materialize: Management has clearly identified that Q3’s revenue softness stemmed from deferrals rather than cancellations. With the timing of customer deployments expected to normalise into the second half of 2025, upcoming quarters could see marked improvement in both top-line and margin metrics.
• Next-Generation Products: The company’s ongoing push in Direct Liquid Cooling (DLC) and advanced AI hardware aligns precisely with the biggest secular trend in tech. Early solutions in DCBBS position SMCI as a go-to partner for cost- and energy-sensitive hyperscale deployments.
• Board and Management Augmentation: Strengthened governance since December 2024 builds investor trust and operational confidence as SMCI enters its next growth phase.
• Sustainability and ESG: Leadership in energy-efficient compute solutions will become incrementally valuable as global data centers face mounting pressure to reduce environmental footprints.

Favorable External Factors

• Sector Demand: The exponential rise of data-driven applications in Southeast Asia, particularly in Singapore's digital economy, is expected to fuel significant incremental demand for SMCI’s offerings.
• Peer Positioning: Unlike legacy server peers weighed down by legacy architectures, SMCI’s nimbleness and innovation pipeline suggest it can capture outsized share as the industry evolves.

Potential for Positive Surprises

Given the current short interest of 17.36%, the potential for a short squeeze is notable, especially should one or more upside catalysts materialize in Q4 2025 or with the next major earnings release.

Investment Strategies

Tactical and Strategic Entry Points

• Short-Term Opportunity: The stock currently consolidates just above heavy technical support near $31.02, offering a favorable entry for tactically minded traders, particularly with annualized volatility of ~1.36 beta. Should even mild positive sentiment return, an initial rally to the $33.45–$35.88 resistance band is plausible.
• Medium-Term Positioning: If delayed orders convert and margin discipline returns—a likely scenario given SMCI’s historical execution—analyst targets in the low-to-mid $40 range seem achievable, potentially within the next two to three quarters.
• Long-Term Outlook: For patient investors, the overarching AI infrastructure investment cycle signifies that SMCI could benefit from multi-year compounding, especially if gross margins recover and product innovation resumes its prior slope.

Ideal Timing and Technical Context

SMCI appears to be forming a low-risk technical base, coinciding with historically reasonable valuation metrics and approaching a likely inflection in order momentum. Investors seeking to position ahead of this next cycle may find current conditions particularly auspicious.

Is it the Right Time to Buy SMCI?

Summary of Key Strengths

• Deep Value After Reset: A 61% drawdown and substantially lower valuation multiples have reset expectations, setting the stage for upside surprises.
• Robust Structural Tailwinds: Aligned perfectly with secular AI, cloud, and data infrastructure trends—areas likely to constitute the core of digital transformation through 2030.
• Liquidity and Governance: High trading volume, a liquid float, and strengthened board oversight provide operational and capital market confidence.
• Innovation Engine: Sustained leadership in energy-efficient, high-performance compute platforms regularly delivers new product cycles.
• Visible Catalysts: From customer order conversion to new product launches and margin normalization, compelling near-term triggers abound.
• Favorable Analyst Sentiment: Street price targets embed significant headroom, justified by both company fundamentals and sectoral context.

Optimistic Projection and Buy-Side Perspective

Considering the convergence of technical stabilization, deep value, robust cash reserves, and clear growth levers, SMCI increasingly seems to represent an excellent opportunity within the global technology ecosystem. While short-term volatility may persist, the fundamentals justify renewed interest at these levels, offering investors the ability to participate in one of the most important growth narratives of the coming decade with a compelling risk/reward dynamic. For Singaporean investors seeking diversified exposure to US technology and AI infrastructure, SMCI may well be entering a new bullish phase. The confluence of valuation reset, sector leadership, and imminent catalysts suggests this is a moment not to overlook for those aiming to capture the next wave of digital transformation.

As always, disciplined research and a focus on long-term value creation will be key—yet for those seeking conviction opportunities, SMCI’s current setup is difficult to ignore.

How to buy SMCI stock in Singapore?

Buying SMCI (Super Micro Computer, Inc.) stock online in Singapore is both simple and secure when using reputable, regulated brokers. Investors have two main ways to gain exposure to SMCI: they can buy the shares outright (“spot buying”) or trade Contracts for Difference (CFDs) for greater flexibility. Spot buying lets you actually own the shares, while CFDs allow leveraged trading and the potential to profit from both rising and falling prices, but without ownership. Each method involves its own fees and risk profile. To help you make the best choice, we’ll compare leading brokers further down the page.

Spot buying

Cash or spot buying means purchasing SMCI shares directly on the NASDAQ through a local or international broker licensed to operate in Singapore. With this approach, you become a shareholder of SMCI and benefit directly from price appreciation or dividends (if paid in the future). Brokers usually charge a fixed commission per trade, often ranging between SGD 5 to SGD 25, depending on the platform and order size.

Example

Suppose the SMCI share price is $32.11 USD (about SGD 43.50 at recent exchange rates). With a SGD 1,400 (roughly USD 1,000) investment and a SGD 7 commission, you could buy approximately 32 shares:

• Total cost: 32 shares × SGD 43.50 = SGD 1,392
• Plus commission: SGD 1,399 (within your budget)
• Gain scenario: If the share price rises by 10% to SGD 47.85, your investment now equals SGD 1,531.
• Result: +SGD 139 gross gain, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading enables you to speculate on SMCI’s share price movements without owning the stock itself. With CFDs, you can use leverage, amplifying both potential gains and losses. Main costs include the “spread” (the difference between buy and sell prices) and overnight financing charges if you hold positions for more than a day.

Example

You open a CFD trade on SMCI shares using SGD 1,400 with 5x leverage, giving you exposure of SGD 7,000 to the market.

• If SMCI’s price rises by 8%, your position increases in value by 8% × 5 = 40%.
• Result: +SGD 560 gain on your SGD 1,400 stake (before fees).
• Note: You will pay spreads and possibly overnight financing if the position is held for multiple days. Losses can also be magnified.

Final advice

Before buying SMCI stock, carefully compare broker fees, platform features, and regulations—especially if you are choosing between spot buying and CFD trading. Your choice should align with your objectives: are you seeking direct ownership for the long term, or do you prefer the flexibility and leverage of CFDs for shorter-term strategies? Each approach has its pros and cons, so be sure to consult the broker comparison tool further down the page to find the best fit for your needs.

Our 7 tips for buying SMCI stock

The latest news about SMCI

SMCI advances in Asia-Pacific, including Singapore, via regional partnerships and product distribution. Super Micro Computer has amplified its Asia-Pacific presence by expanding its network with distributors that cover Singapore, including value-added resellers targeting data center and cloud infrastructure customers. The company’s Singapore-focused partners have been instrumental in rolling out high density AI-optimised server solutions for local cloud service providers, fintech firms, and academic research hubs, offering customisation and local technical support to enterprise clients. These partnerships have contributed to consistent revenue streams from regional hyperscale deployments and have reinforced SMCI’s brand visibility amid strong local demand for AI infrastructure.

SMCI’s quarterly results show robust revenue expansion but highlight profitability headwinds and cautious short-term sentiment. In its most recent quarterly report, SMCI delivered a 19.5% year-over-year increase in revenue, although sequential growth lagged and gross margins declined to 9.6% from 15.5% a year ago. Net income fell sharply to $109 million, with diluted EPS at $0.17 versus $0.66 in the prior-year quarter, reflecting margin pressure and delayed customer orders. While this miss against analyst expectations exerted short-term downward pressure on the stock, the management reiterated its long-term confidence and continues to underline demand recovery in the Asia-Pacific region, including anticipated order completions in Singapore and neighbouring markets in upcoming quarters.

Management maintains positive AI infrastructure outlook, anticipating recovery from delayed APAC customer commitments. SMCI’s leadership points to strong forward demand for AI server infrastructure from Asian customers, citing delayed but not lost projects in Singapore and the broader region due to platform qualification cycles and economic caution. The company expects these client deployments to resume in the next two quarters, with industry analysts in Singapore highlighting a resurgence of enterprise AI budgets and a growing preference for direct liquid cooling technologies that SMCI leads in. This regional recovery is viewed as a constructive medium-term catalyst for both revenue and sentiment.

Analyst consensus remains bullish, with deep value and substantial upside from present levels. Despite recent earnings volatility, analysts retain an average price target of $43.67, offering roughly 36% upside to the current share price. Singapore-based investment advisers have noted that SMCI’s forward P/E of 9.44, compared to the rapid expansion of the AI and cloud infrastructure market, presents an attractive risk-adjusted entry point for institutional and sophisticated retail investors in the region, particularly for those seeking US technology exposure with local market relevance.

Technical signals in the last week indicate short-term weakness, but long-term fundamentals remain intact. SMCI’s price currently trades below all key moving averages, with a neutral RSI of 45.03 and a bearish MACD, suggesting continued near-term volatility and a prevailing “sell” sentiment from technical traders. However, the stock’s high liquidity and robust trading volumes, together with stabilized support levels around $31, have attracted contrarian interest from Asian fund managers monitoring for technical reversals. Singapore-based market participants are advised to view present conditions as a consolidation phase, with accumulating long-term positions aligning with expected regional demand recovery and fundamental growth prospects.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.