Analysts revamp Super Micro stock price target after earnings

Shares of Super Micro Computer (SMCI), oregon Supermicro, tumbled 8.6% connected Feb. 5, erasing astir of its post-earnings gains amid a broader marketplace stumble.

A time earlier (Feb. 4), Super Micro banal surged 13% aft the server shaper reported better-than-expected net and gross for the fiscal 2nd 4th ended Dec. 31, 2025.

Super Micro is simply a California-based server shaper that besides provides server absorption bundle and retention systems for endeavor information centers, unreality computing, and artificial intelligence.

The institution posted adjusted net of 69 cents a stock for its fiscal 2nd quarter, topping analysts’ estimates of 49 cents. Revenue surged 123% twelvemonth implicit twelvemonth to $12.7 billion, good supra expectations of $10.4 billion.

Guidance for the existent 4th besides topped expectations, with the institution forecasting adjusted net of 60 cents a stock and gross of $12.3 billion, compared with Wall Street estimates of 46 cents and $11.3 billion.

However, Super Micro’s gross borderline fell to 6.3% successful the fiscal 2nd quarter, down from 9.3% successful the anterior 4th and beneath management’s erstwhile guidance of 6.5%. Gross borderline is simply a cardinal metric Wall Street watches for pricing powerfulness and valuation support.

This highlights a cardinal situation for Super Micro’s business, arsenic the institution is much of a terms taker than a terms setter. It is caught betwixt paying precocious prices for chips from Nvidia (NVDA) and AMD (AMD) and selling systems to ample customers.

As a result, it has constricted country to negociate pricing and support margins.

Related: Analysts revisit Nvidia-backed AI banal up of earnings

The institution is seeing “near-term borderline pressure” from "customer mix, tariffs, planetary installation expansion, and cardinal components shortage," CEO Charles Liang said connected an net call.

Still, Super Micro offered immoderate reassurance, with Liang pointing to caller lawsuit flows, stronger margins, and AI request ahead.

"Our absorption connected endeavor business, plan for manufacturing improvement, and the faster-growing DCBBS (Data Center Building Block Solutions) portfolio each assistance america summation caller customers, enactment a higher growth, and a nett borderline going forward," Liang said.

"Based connected our wide lawsuit backorder forecast and commitment, we judge demands for AI and IT infrastructure stay unprecedentedly strong," Liang added.

Super Micro shares were connected a roller coaster past year, plunging aft its August and November 2025 net reports disappointed investors.

Once an artificial quality darling, the banal peaked adjacent $118 successful March 2024 and has since fallen to $30.85 arsenic of Feb. 5’s close.