Super Micro Computer ( (SMCI) ) has fallen by -12.26%. Read on to learn why.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Super Micro Computer’s stock has experienced a significant drop of 12.26% over the past week, largely due to disappointing preliminary first-quarter fiscal 2026 results. The company, known for its AI servers and data center liquid cooling solutions, reported a revenue of $5 billion, which fell short of Wall Street’s expectations of $6.49 billion and its own guidance by nearly $1.5 billion. This revenue miss has raised concerns about the company’s ability to maintain its margins, as highlighted by Goldman Sachs analyst Mike Ng, who maintained a ‘Sell’ rating despite raising the price target from $27 to $30.
The revenue shortfall was attributed to delayed deliveries as customers upgrade their system designs, which is expected to put pressure on Super Micro’s gross margins. Despite these challenges, there is some optimism regarding the company’s order momentum for advanced GPU and server solutions. However, rising competition and valuation concerns continue to weigh heavily on the stock, as reflected in the mixed analyst ratings, with a consensus ‘Hold’ rating and an average price target of $43.69, suggesting further downside potential.
Adding to the uncertainty, insider sentiment has turned negative, with increased insider selling activity noted in recent months. This, coupled with the company’s revised revenue outlook, has contributed to the stock’s recent decline. Investors are now looking forward to the company’s Q1 earnings call on November 4 for more clarity on future revenue expectations and delivery timelines, hoping for a turnaround in the company’s fortunes.