Super Micro Computer Inc. (NASDAQ: SMCI) stock has its bullish supporters, some of whom feel it can withstand global trade issues and that it may be one of the best artificial intelligence (AI) stocks going forward.
Super Micro Computer, Inc. (SMCI) Presents at Barclays 23rd Annual Global Technology Conference Transcript
Super Micro Computer's shares slide as expansion strains margins and cash flow, even as AI server demand and new platforms fuel long-term growth ambitions.
Super Micro Computer stock fell 22.1% after repeatedly missing revenue estimates and guidance, raising execution concerns. SMCI's Q1 sales declined 15% YoY, gross margins dropped to 9.5%, and EPS fell 53%, with delays attributed to customer upgrades and data center readiness. Management guides for $10–11 billion Q2 sales and at least $36 billion for FY, but persistent guidance misses and margin pressure raise risk.
Zacks.com users have recently been watching Super Micro (SMCI) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Super Micro (SMCI) reported earnings 30 days ago. What's next for the stock?
Super Micro Computer targets $36B in FY26 revenues despite a quarterly dip, betting on AI demand and its modular data center strategy to drive growth.
Super Micro Computer has experienced significant volatility recently, dropping from $60 to near $30, a key support level. In addition to being just above a strong support level of $30, SMCI is also massively oversold. Despite a notable FY2026 revenue guidance boost, the stock's recent price movement leaves it massively undervalued, with its P/S ratio near crisis levels.
Super Micro Computer (SMCI) shares are down 31.0% over the last 21 trading days. This recent decline highlights worries regarding intensified competition in the AI server market and shrinking margins following an earnings miss.
Super Micro Computer (SMCI) is upgraded to Buy due to its extremely attractive 0.5x FY26 revenue multiple, despite ongoing margin pressures. SMCI faces volatile gross margins, intense competition from OEMs and ODMs, and management's inconsistent guidance, leading to market skepticism. Despite projected 65% FY26 revenue growth, SMCI's gross margin-adjusted revenue growth is estimated at only 11%, reflecting industry-wide margin compression.
Zacks.com users have recently been watching Super Micro (SMCI) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Super Micro's Q1 double-miss on earnings was a timing issue, with roughly $1.5 billion in revenue simply shifting into the next quarter. SMCI's Q1 revenue miss is attributed to delayed recognition, not demand weakness, with management guiding for a strong Q2 and raising FY2026 revenue outlook to $36B. While margins are under pressure in a competitive AI server market, SMCI's rapid product cycles and manufacturing scale should support future margin expansion and earnings growth.