Super Micro Computer Raises 2026 Revenue Forecast Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy SMCI?
Source: Newsfilter
- Revenue Forecast Increase: Super Micro Computer raised its fiscal year 2026 revenue forecast from $36 billion to at least $40 billion, reflecting robust demand for AI-optimized servers and indicating a strong market position amid rapid growth.
- Stock Price Surge: The company's shares rose over 5% in extended trading, demonstrating investor optimism regarding future performance and enhancing overall market confidence in Super Micro's prospects.
- Customer Base Expansion: The company is benefiting from growth among existing customers while also attracting new clients, indicating its increasing competitiveness in the AI server and rack market, which is driving overall business growth.
- Strengthened Partnerships: Super Micro is closely collaborating with chip designers like Nvidia and AMD to rapidly bring servers to market, further solidifying its position as a primary beneficiary of the generative AI boom.
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Analyst Views on SMCI
Wall Street analysts forecast SMCI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMCI is 46.82 USD with a low forecast of 34.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
5 Buy
5 Hold
2 Sell
Hold
Current: 29.710
Low
34.00
Averages
46.82
High
63.00
Current: 29.710
Low
34.00
Averages
46.82
High
63.00
About SMCI
Super Micro Computer, Inc. provides application-optimized Total IT solutions. It delivers rack-scale solutions optimized for various workloads, including artificial intelligence and high-performance computing, where acceleration is critical. It produces a portfolio of server and storage solutions for enterprise data centers, cloud service providers and edge computing (5G Telco, Retail and embedded). Total IT Solutions include complete servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, server management and security software. It provides global support and services to help its customers install, upgrade and maintain their computing infrastructure, including liquid-cooling operations. It offers platforms in rackmount, blade, multi-node and embedded form factors, which support single, dual and multiprocessor architectures. Its key product lines include SuperBlade and MicroBlade, SuperStorage, Twin and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Super Micro Computer Shares Drop as Investors Await Earnings Report
- Earnings Expectations: Super Micro is expected to report earnings of 46 cents per share on revenue of $10.38 billion, which is near the lower end of the company's guidance from November, indicating cautious market sentiment regarding its performance.
- Performance Review: Last quarter, the company reported net sales of $5.0 billion, down from $5.8 billion in the previous quarter and $5.9 billion a year ago, highlighting revenue pressures, with gross margin slipping from 13.1% to 9.3%.
- Mixed Analyst Sentiment: While Rosenblatt maintained a buy rating with a target price of $55, Goldman Sachs downgraded to sell on January 13 with a target of $26, reflecting divergent views on Super Micro's future performance.
- Market Performance: As of Tuesday, Super Micro shares were down 1.99% at $29.13, reflecting investor caution ahead of the earnings report, which may impact short-term stock movements.
See More
Super Micro Computer Reports 123% Surge in Q2 Sales
- Significant Sales Growth: Super Micro Computer reported a net sales figure of $12.7 billion for Q2, marking a 123% increase from $5.7 billion in the same period last year, significantly exceeding analyst expectations of $10.34 billion, indicating robust market demand and company competitiveness.
- AI Technology Leadership: The company leverages its leading AI server and storage technology foundation to maintain strong customer engagements, underscoring its critical position in the rapidly growing AI and enterprise deployment markets, thereby further solidifying its market share.
- Global Manufacturing Expansion: Super Micro is expanding its global manufacturing footprint to support large-scale AI and enterprise deployments, demonstrating the company's agility and foresight in addressing market demands.
- Strengthened Operational and Financial Execution: Founder and CEO Charles Liang emphasized the company's ongoing enhancements in operational and financial execution, ensuring a rapid response to customer needs and driving long-term growth.
See More
Multiple Companies Show Poor After-Hours Trading Performance
- Chipotle Traffic Decline: Chipotle reported a fourth consecutive quarter of declining restaurant traffic, leading to a 6% drop in stock price and projecting flat same-store sales growth for 2026, which could hinder its market competitiveness and future growth potential.
- Corteva Sales Miss: Corteva's stock fell 5% after reporting a fourth-quarter sales miss, impacted by falling crop prices and geopolitical tensions, which may lead to weakened demand and affect the company's performance going forward.
- AMD Revenue Guidance Below Analysts: AMD shares declined about 7% as it projected first-quarter revenue at $9.8 billion, below analysts' expectations of $9.38 billion, although its non-GAAP gross margin aligned with market estimates, potentially affecting investor confidence.
- Enphase Energy Strong Guidance: Enphase Energy's stock jumped about 19% as it issued a revenue guidance range of $270 million to $300 million for the first quarter, exceeding market expectations, indicating robust growth potential in the renewable energy sector.
See More
Super Micro Computer Q2 Earnings Beat Expectations
- Earnings Surprise: Super Micro Computer reported Q2 earnings of 69 cents per share, exceeding the analyst consensus of 49 cents by 41.68%, indicating a significant improvement in profitability and boosting investor confidence.
- Significant Revenue Growth: The quarterly revenue reached $12.68 billion, surpassing the market estimate of $10.22 billion and increasing by 123.5% from $5.68 billion in the same period last year, reflecting strong demand in the AI and enterprise sectors.
- Optimistic Outlook: The company expects third-quarter adjusted EPS of 60 cents, above the analyst estimate of 53 cents, and revenue in the range of $12.3 billion to $12.6 billion, indicating ongoing growth potential.
- Stock Price Surge: Following the earnings report, Super Micro's stock rose 7.21% to $31.81 in after-hours trading, signaling positive market expectations for the company's future performance.
See More
Super Micro Computer Raises 2026 Revenue Forecast Amid AI Demand
- Revenue Forecast Increase: Super Micro Computer raised its fiscal year 2026 revenue forecast from $36 billion to at least $40 billion, reflecting robust demand for AI-optimized servers and indicating a strong market position amid rapid growth.
- Stock Price Surge: The company's shares rose over 5% in extended trading, demonstrating investor optimism regarding future performance and enhancing overall market confidence in Super Micro's prospects.
- Customer Base Expansion: The company is benefiting from growth among existing customers while also attracting new clients, indicating its increasing competitiveness in the AI server and rack market, which is driving overall business growth.
- Strengthened Partnerships: Super Micro is closely collaborating with chip designers like Nvidia and AMD to rapidly bring servers to market, further solidifying its position as a primary beneficiary of the generative AI boom.
See More
Super Micro Computer Q2 Earnings Exceed Expectations
- Strong Performance: Super Micro Computer reported a Q2 non-GAAP EPS of $0.69, beating expectations by $0.20, with revenue reaching $12.7 billion, a 122.8% year-over-year increase, indicating robust market demand and growth potential.
- Q3 Outlook: The company expects net sales of at least $12.3 billion for Q3 of fiscal year 2026, surpassing the consensus of $10.20 billion, with GAAP EPS projected at $0.52 and non-GAAP EPS at $0.60, reflecting ongoing profitability.
- Tax and Share Count Impact: The projections for GAAP and non-GAAP EPS assume tax rates of approximately 19.6% and 20.2%, respectively, with fully diluted share counts of 684 million for GAAP and 699 million for non-GAAP, showcasing transparency in financial management.
- Annual Sales Expectations: For fiscal year 2026, the company anticipates net sales of at least $40 billion, indicating strong growth potential in the future market, with a 3% increase in share price further validating investor confidence in the company's outlook.
See More
Super Micro Computer Shares Drop as Investors Await Earnings Report
- Earnings Expectations: Super Micro is expected to report earnings of 46 cents per share on revenue of $10.38 billion, which is near the lower end of the company's guidance from November, indicating cautious market sentiment regarding its performance.
- Performance Review: Last quarter, the company reported net sales of $5.0 billion, down from $5.8 billion in the previous quarter and $5.9 billion a year ago, highlighting revenue pressures, with gross margin slipping from 13.1% to 9.3%.
- Mixed Analyst Sentiment: While Rosenblatt maintained a buy rating with a target price of $55, Goldman Sachs downgraded to sell on January 13 with a target of $26, reflecting divergent views on Super Micro's future performance.
- Market Performance: As of Tuesday, Super Micro shares were down 1.99% at $29.13, reflecting investor caution ahead of the earnings report, which may impact short-term stock movements.
See More
Super Micro Computer Reports 123% Surge in Q2 Sales
- Significant Sales Growth: Super Micro Computer reported a net sales figure of $12.7 billion for Q2, marking a 123% increase from $5.7 billion in the same period last year, significantly exceeding analyst expectations of $10.34 billion, indicating robust market demand and company competitiveness.
- AI Technology Leadership: The company leverages its leading AI server and storage technology foundation to maintain strong customer engagements, underscoring its critical position in the rapidly growing AI and enterprise deployment markets, thereby further solidifying its market share.
- Global Manufacturing Expansion: Super Micro is expanding its global manufacturing footprint to support large-scale AI and enterprise deployments, demonstrating the company's agility and foresight in addressing market demands.
- Strengthened Operational and Financial Execution: Founder and CEO Charles Liang emphasized the company's ongoing enhancements in operational and financial execution, ensuring a rapid response to customer needs and driving long-term growth.
See More
Multiple Companies Show Poor After-Hours Trading Performance
- Chipotle Traffic Decline: Chipotle reported a fourth consecutive quarter of declining restaurant traffic, leading to a 6% drop in stock price and projecting flat same-store sales growth for 2026, which could hinder its market competitiveness and future growth potential.
- Corteva Sales Miss: Corteva's stock fell 5% after reporting a fourth-quarter sales miss, impacted by falling crop prices and geopolitical tensions, which may lead to weakened demand and affect the company's performance going forward.
- AMD Revenue Guidance Below Analysts: AMD shares declined about 7% as it projected first-quarter revenue at $9.8 billion, below analysts' expectations of $9.38 billion, although its non-GAAP gross margin aligned with market estimates, potentially affecting investor confidence.
- Enphase Energy Strong Guidance: Enphase Energy's stock jumped about 19% as it issued a revenue guidance range of $270 million to $300 million for the first quarter, exceeding market expectations, indicating robust growth potential in the renewable energy sector.
See More
Super Micro Computer Q2 Earnings Beat Expectations
- Earnings Surprise: Super Micro Computer reported Q2 earnings of 69 cents per share, exceeding the analyst consensus of 49 cents by 41.68%, indicating a significant improvement in profitability and boosting investor confidence.
- Significant Revenue Growth: The quarterly revenue reached $12.68 billion, surpassing the market estimate of $10.22 billion and increasing by 123.5% from $5.68 billion in the same period last year, reflecting strong demand in the AI and enterprise sectors.
- Optimistic Outlook: The company expects third-quarter adjusted EPS of 60 cents, above the analyst estimate of 53 cents, and revenue in the range of $12.3 billion to $12.6 billion, indicating ongoing growth potential.
- Stock Price Surge: Following the earnings report, Super Micro's stock rose 7.21% to $31.81 in after-hours trading, signaling positive market expectations for the company's future performance.
See More
Super Micro Computer Raises 2026 Revenue Forecast Amid AI Demand
- Revenue Forecast Increase: Super Micro Computer raised its fiscal year 2026 revenue forecast from $36 billion to at least $40 billion, reflecting robust demand for AI-optimized servers and indicating a strong market position amid rapid growth.
- Stock Price Surge: The company's shares rose over 5% in extended trading, demonstrating investor optimism regarding future performance and enhancing overall market confidence in Super Micro's prospects.
- Customer Base Expansion: The company is benefiting from growth among existing customers while also attracting new clients, indicating its increasing competitiveness in the AI server and rack market, which is driving overall business growth.
- Strengthened Partnerships: Super Micro is closely collaborating with chip designers like Nvidia and AMD to rapidly bring servers to market, further solidifying its position as a primary beneficiary of the generative AI boom.
See More
Super Micro Computer Q2 Earnings Exceed Expectations
- Strong Performance: Super Micro Computer reported a Q2 non-GAAP EPS of $0.69, beating expectations by $0.20, with revenue reaching $12.7 billion, a 122.8% year-over-year increase, indicating robust market demand and growth potential.
- Q3 Outlook: The company expects net sales of at least $12.3 billion for Q3 of fiscal year 2026, surpassing the consensus of $10.20 billion, with GAAP EPS projected at $0.52 and non-GAAP EPS at $0.60, reflecting ongoing profitability.
- Tax and Share Count Impact: The projections for GAAP and non-GAAP EPS assume tax rates of approximately 19.6% and 20.2%, respectively, with fully diluted share counts of 684 million for GAAP and 699 million for non-GAAP, showcasing transparency in financial management.
- Annual Sales Expectations: For fiscal year 2026, the company anticipates net sales of at least $40 billion, indicating strong growth potential in the future market, with a 3% increase in share price further validating investor confidence in the company's outlook.
See More
