03:50 PM EDT, 06/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price to $52 from $39, shifting to a P/E of 15x our CY 26 EPS view of $3.49, in-line with SMCI's three-year historical average, reflecting heightened volatility and customer delays. We keep our FY 25 EPS at $2.06 and FY 26's at $3.14. We maintain our Buy rating, as we view current headwinds as temporary, with SMCI's first-to-market AI positioning compelling despite Q3's 9.7% margin compression. We think the transformative $20+ billion multiyear DataVolt partnership for Saudi hyperscale AI campuses validates our Sovereign AI thesis, potentially generating $3 billion to $5 billion annually and representing 10% to 15% of the $450 billion to $500 billion AI infrastructure opportunity. We expect the planned U.S. production expansion in Mississippi/Texas to address supply chain risks, while innovative liquid cooling and comprehensive Data Center solutions position SMCI favorably in emerging Sovereign AI markets despite near-term platform transition challenges.