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Investing.com - Mizuho has lowered its price target on Super Micro Computer (NASDAQ:SMCI) to $45.00 from $50.00 while maintaining a Neutral rating on the stock.
The adjustment follows Super Micro’s September quarter revenue report of $5.02 billion, which fell short of the consensus estimate of $6.09 billion but aligned with the company’s pre-announcement of approximately $5 billion.
Super Micro provided guidance for the December quarter, projecting revenue to increase 109% quarter-over-quarter to $10.5 billion, exceeding the consensus estimate of $8.06 billion, and raised its fiscal year 2026 revenue guidance to "at least $36 billion" from the previous outlook of "more than $33 billion."
Mizuho highlighted concerns about gross margin and profitability challenges, noting that Super Micro’s gross margin is estimated to decline 350 basis points quarter-over-quarter due to higher engineering costs, overtime, and expedited delivery expenses as the company ramps up its largest-ever cluster.
The firm also pointed to Super Micro’s expansion plans, with total capacity increasing to 6,000 racks per month by the end of fiscal year 2026, including approximately 3,000 racks for direct liquid cooling solutions, up from previous targets of 5,000 and 2,000 respectively.
In other recent news, Super Micro Computer Inc. announced its first-quarter fiscal 2026 earnings, which fell short of analyst expectations. The company reported earnings per share of $0.35, missing the anticipated $0.46. Additionally, Super Micro’s revenue reached $5 billion, which was below the forecasted $6.46 billion. These results mark a significant miss in both earnings and revenue projections. The company’s performance has drawn attention from various analyst firms, although no specific upgrades or downgrades were reported. These recent developments highlight the challenges Super Micro is facing in meeting market expectations. Investors and analysts will likely keep a close eye on the company’s future performance.
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