Super Micro Computer (SMCI) got a price target boost from Goldman Sachs analyst Mike Ng, though he remains cautious about its long-term outlook. Ng maintained his “Sell” rating while raising the price target from $27 to $30, implying 37.4% downside potential from current levels. This adjustment follows Super Micro’s disappointing preliminary Q1 fiscal 2026 results. Super Micro is a company specializing in AI servers and data center liquid cooling.
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Ng is among the top analysts on TipRanks, ranking #1,141 out of 10,084 analysts tracked. He has a 55% success rate and an average return per rating of 10.70%.
Revenue Miss Could Pressure Margins
On October 23, SMCI unexpectedly released its preliminary first-quarter fiscal 2026 results, which disappointed investors. The company reported preliminary fiscal Q1 revenue of $5 billion, falling short of both Wall Street’s $6.49 billion estimate and the company’s own prior guidance by nearly $1.5 billion.
Ng noted that the revenue shortfall was due to delayed deliveries from Q1 to Q2 as customers upgrade their system designs. He added that the anticipated revenue miss is expected to exert pressure on gross margins.
Despite these challenges, Ng was encouraged by SMCI’s order momentum for advanced GPU and server solutions, particularly in light of ongoing investor concerns regarding potential market share losses. However, he maintains a “Sell” rating on SMCI shares due to rising competition, margin pressures, and valuation concerns.
The company confirmed that its Q1 earnings call will be held on November 4, where it is expected to provide more clarity on Q2 deliveries and revenue expectations.
Is SMCI Stock a Buy, Hold, or Sell?
On TipRanks, SMCI stock has a Hold consensus rating based on four Buys, eight Holds, and three Sell ratings. The average Super Micro Computer price target of $43.69 implies 8.8% downside potential from current levels. Year-to-date, SMCI stock has surged 57%.
