What’s Behind the Decline in Super Micro Computer Stock?

Super Micro Computer Co., Ltd. (NASDAQ:SMCI) is seeing its stock prices dip this Tuesday. Investors are particularly focused on the company’s upcoming second-quarter earnings report, set to be released after the market closes today.

What to Expect

Analysts anticipate Supermicro will report earnings of 46 cents per share, alongside revenues of $10.38 billion. This estimate sits close to the lower end of the projections the company provided back in November, which ranged from $10 billion to $11 billion in sales and non-GAAP earnings between 46 cents and 54 cents per share.

Reviewing Last Quarter

In the previous quarter, Supermicro reported net sales of $5.0 billion, a drop from $5.8 billion in the prior quarter and down from $5.9 billion a year earlier. The diluted earnings per share decreased to 26 cents, down from 31 cents the previous quarter and a significant decline from 67 cents in the same period last year. Additionally, the gross profit margin fell to 9.3%, a slight drop from 9.5% the quarter prior and down from 13.1% year-over-year.

Even with this revenue decline, CEO Charles Liang emphasized the company’s shift toward becoming a major player in AI and data center infrastructure. Supermicro announced it has received over $13 billion in orders for Blackwell Ultra and is projecting at least $36 billion in revenue for fiscal 2026.

Analyst Opinions Vary

Recent analyst activities regarding Supermicro have been quite varied. This week, Rosenblatt reaffirmed a Buy rating and set a price target of $55.00, which is the highest target among recent evaluations. In contrast, Goldman Sachs issued a sell rating back on January 13th with a much lower price target of $26.00.

Meanwhile, Citigroup kept a Neutral rating but reduced its price target from $48.00 to $39.00 as of January 20th. Mizuho also adopted a neutral perspective, lowering its target from $45.00 to $31.00 on January 9th. Additionally, BofA Securities has categorized Super Microcomputer stock as a Sell, placing a target price of $34.00 on December 2nd.

SMCI Price Action: The stock of Supermicrocomputer has seen a decline of 1.99%, landing at $29.13 following Tuesday’s announcement, as noted by Benzinga Pro.