SMCI Shares Rally Despite Fresh Downgrades — Retail Calls It The ‘Most Undervalued AI Stock’

• Earlier this week, Goldman Sachs initiated coverage on SMCI with a ‘Sell’ rating and a price target of $26. 
• Mizuho also lowered its price target on the company to $31 from $45 while maintaining a ‘Neutral’ rating on the shares.

Shares of Super Micro Computer Inc. (SMCI) rallied over 8.5% on Friday despite a recent ‘Sell’ rating from Goldman Sachs, garnering significant retail attention.

The company’s shares rose amid broader gains in the semiconductor industry, specifically after Taiwan Semiconductor Manufacturing Company (TSM) delivered blowout quarterly results earlier this week.

Super Micro Computer is a key partner for Nvidia Corp. (NVDA), specializing in high-performance, liquid-cooled servers and storage systems for artificial intelligence data centers and advanced GPU platforms. Meanwhile, TSMC manufactures Nvidia’s advanced chips.

Street Consensus

Earlier this week, Goldman Sachs initiated coverage on Super Micro Computer with a ‘Sell’ rating, giving it a price target of $26. The analyst said that there is limited visibility on the company improving its profitability despite its expectations for SMCI to be an AI server market leader in the medium term.

Meanwhile, Mizuho also lowered its price target on Super Micro Computer to $31 from $45 while maintaining a ‘Neutral’ rating on the shares, citing modest upside for semiconductor companies in 2026.

However, despite Wall Street’s stance, the semiconductor industry has been gaining significantly since TSMC posted results on Thursday, clocking a 20.5% increase in quarterly revenue and a whopping 35% surge in profit.

TSMC also increased its sales growth guidance close to 30% year-over-year and increased its 2026 capital expenditure by 37% to $56 billion, stoking expectations for strong growth across the semiconductor industry.

What Are Stocktwits Users Saying?

On Stocktwits, retail sentiment around SMCI stock has remained in ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.

One user said that the stock was still cheap despite its climb, adding that TSMC’s results confirm that the company’s $100 billion revenue a year is around the corner.

Another bullish user cited the company’s recent military contract as a huge deal. In October 2025, the company established a subsidiary to cater to U.S. federal agencies' demand.

A third bullish user predicted that the company’s share price would soar to $35 before its earnings results, due on Feb. 9, and would rally over $45 after the results.

Shares of SMCI have climbed 3.4% in the past year.

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