Super Micro Computer Shares Drop as Goldman Sachs Initiates Sell Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Should l Buy SMCI?
Source: Benzinga
- Analyst Downgrade: Goldman Sachs has downgraded Super Micro Computer to a Sell rating with a price target of $26, reflecting a pessimistic outlook that may further erode investor confidence in the stock.
- Challenging Market Environment: Both the Nasdaq and S&P 500 indices have declined, with Super Micro's shares down 8.75% over the past year, currently trading at $28.40, significantly below the 52-week high of $66.44, indicating overall pressure on tech stocks.
- Technical Indicators Show Weakness: The stock is trading 7.1% below its 20-day simple moving average and 31.4% below its 100-day moving average, suggesting a bearish trend in the short term, prompting investors to exercise caution.
- Future Earnings Expectations: Super Micro is expected to report earnings of $0.45 per share on February 10, down from last year, although revenue is projected at $10.38 billion, indicating growth potential, yet analysts remain cautious about future expectations.
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Analyst Views on SMCI
Wall Street analysts forecast SMCI stock price to rise
12 Analyst Rating
5 Buy
5 Hold
2 Sell
Hold
Current: 27.920
Low
34.00
Averages
46.82
High
63.00
Current: 27.920
Low
34.00
Averages
46.82
High
63.00
About SMCI
Super Micro Computer, Inc. is an application-optimized Total IT solutions provider including server, artificial intelligence (AI) systems, storage, information of technology (IoT) devices, switches, software, and support services. 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. Its products are designed and manufactured in-house (in the United States, Taiwan, and the Netherlands). Its portfolio of Server Building Block Solutions allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from the Company’s flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).
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 Q3 FY 2026 Earnings Call Insights
- Revenue Growth: Super Micro Computer reported Q3 FY 2026 revenue of $10.2 billion, reflecting a 123% year-over-year increase despite a 19% quarter-over-quarter decline, attributed to temporary customer site readiness delays, with management expecting to recover this revenue in upcoming quarters.
- Margin Recovery: The non-GAAP gross margin significantly improved to 10.1%, with management committed to achieving a sustainable double-digit gross margin model by focusing on the enterprise market and DCBBS business, indicating a positive shift in profitability.
- Software Revenue Surge: Revenue from the new software product line increased from less than $10 million per quarter a few quarters ago to $34 million last quarter, and over $46 million booked for this quarter, showcasing substantial progress in software monetization.
- Future Outlook: Management expects FY 2026 net sales to range between $38.9 billion and $40.4 billion, with Q4 net sales projected at $11 billion to $12.5 billion, reflecting confidence in future growth despite challenges related to customer readiness and supply chain issues.
See More
Super Micro Computer Q3 Earnings Exceed Expectations
- Margin Exceeds Expectations: Super Micro Computer reported an adjusted gross margin of 10.1% for Q3, surpassing analysts' estimates of 6.75%, indicating effective cost management and boosting investor confidence in profitability.
- Strong Earnings Performance: The company posted adjusted earnings of $0.84 per share, exceeding the average analyst estimate of $0.63, demonstrating its sustained competitiveness in the high-performance computing infrastructure market.
- Revenue Guidance Downgrade: Despite reporting over $10.2 billion in Q3 revenue, which fell short of the $12.45 billion analysts expected, the company lowered its 2026 revenue guidance to between $38.9 billion and $40.4 billion, reflecting market demand uncertainties.
- Optimistic Market Sentiment: Retail sentiment on Stocktwits is extremely bullish with high message volumes, as some users speculate that Super Micro could become the next Micron Technology or Sandisk, indicating strong market expectations for future growth.
See More
Super Micro (SMCI) Q3 2026 Earnings Transcript
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AMD's Strong Guidance Boosts Stock Price
- AMD Earnings Beat: AMD's strong second-quarter revenue guidance of $11.2 billion, with a $300 million variance, surpasses analyst expectations of $10.52 billion, indicating robust demand and growth potential in the semiconductor market.
- Super Micro Profit Expectations: Super Micro Computer's stock surged 19% as fourth-quarter profit expectations range from 65 to 79 cents per share, significantly exceeding Wall Street's forecast of 55 cents, with third-quarter adjusted earnings of 84 cents showcasing its competitive edge in the server market.
- Jacobs Solutions Guidance Raised: Jacobs Solutions' shares fell 2% despite beating second-quarter adjusted earnings and revenue expectations, as the company raised its full-year earnings guidance to between $7.10 and $7.35 per share, reflecting business resilience.
- Lucid Group Misses Estimates: Lucid Group's stock dropped 2% after reporting a first-quarter loss of $3.46 per share, significantly worse than the expected $2.64 loss, with revenue of $282.5 million falling short of the $440.4 million forecast, highlighting challenges in the electric vehicle market.
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Super Micro Computer Faces Class Action Lawsuit
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Super Micro Computer, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by May 26, 2026.
- Details of Allegations: The U.S. Department of Justice has indicted three executives from Super Micro for illegally diverting approximately $2.5 billion worth of servers to China, violating U.S. export control laws to drive sales and revenue.
- Stock Price Plunge: Following the lawsuit announcement, Super Micro's stock price fell by $10.26, or 33.32%, closing at $20.54 per share on March 20, 2026, indicating the market's acute sensitivity to the company's legal risks.
- Long-term Legal Implications: The lawsuit and related allegations could result in substantial damages and reputational harm for Super Micro, potentially impacting its competitiveness and investor confidence in the global market.
See More
Super Micro Reports Strong Quarterly Guidance Despite Revenue Miss
- Quarterly Performance Beat: Super Micro's latest earnings report shows adjusted earnings per share of 84 cents, surpassing the market expectation of 62 cents, although revenue came in at $10.24 billion, below the expected $12.33 billion, indicating strong performance in the AI market.
- Revenue Growth Year-over-Year: The company reported a 123% year-over-year revenue increase in the third quarter, reflecting a surge in demand in the artificial intelligence and enterprise sectors, despite facing other challenges.
- Executive Changes Impact: Super Micro severed ties with a co-founder implicated in a federal indictment in March, with the CEO stating that the company may have been a victim of elaborate schemes orchestrated by these individuals, affecting its reputation and operations.
- Expansion Plans: Super Micro has added new manufacturing facilities in Silicon Valley, with its fourth Bay Area location expected to exceed 714,000 square feet, equipped for manufacturing, design, testing, and service, demonstrating the company's strong response capability to the growing demand in AI and enterprise markets.
See More
Super Micro Computer Q3 FY 2026 Earnings Call Insights
- Revenue Growth: Super Micro Computer reported Q3 FY 2026 revenue of $10.2 billion, reflecting a 123% year-over-year increase despite a 19% quarter-over-quarter decline, attributed to temporary customer site readiness delays, with management expecting to recover this revenue in upcoming quarters.
- Margin Recovery: The non-GAAP gross margin significantly improved to 10.1%, with management committed to achieving a sustainable double-digit gross margin model by focusing on the enterprise market and DCBBS business, indicating a positive shift in profitability.
- Software Revenue Surge: Revenue from the new software product line increased from less than $10 million per quarter a few quarters ago to $34 million last quarter, and over $46 million booked for this quarter, showcasing substantial progress in software monetization.
- Future Outlook: Management expects FY 2026 net sales to range between $38.9 billion and $40.4 billion, with Q4 net sales projected at $11 billion to $12.5 billion, reflecting confidence in future growth despite challenges related to customer readiness and supply chain issues.
See More
Super Micro Computer Q3 Earnings Exceed Expectations
- Margin Exceeds Expectations: Super Micro Computer reported an adjusted gross margin of 10.1% for Q3, surpassing analysts' estimates of 6.75%, indicating effective cost management and boosting investor confidence in profitability.
- Strong Earnings Performance: The company posted adjusted earnings of $0.84 per share, exceeding the average analyst estimate of $0.63, demonstrating its sustained competitiveness in the high-performance computing infrastructure market.
- Revenue Guidance Downgrade: Despite reporting over $10.2 billion in Q3 revenue, which fell short of the $12.45 billion analysts expected, the company lowered its 2026 revenue guidance to between $38.9 billion and $40.4 billion, reflecting market demand uncertainties.
- Optimistic Market Sentiment: Retail sentiment on Stocktwits is extremely bullish with high message volumes, as some users speculate that Super Micro could become the next Micron Technology or Sandisk, indicating strong market expectations for future growth.
See More
Super Micro (SMCI) Q3 2026 Earnings Transcript
See More
AMD's Strong Guidance Boosts Stock Price
- AMD Earnings Beat: AMD's strong second-quarter revenue guidance of $11.2 billion, with a $300 million variance, surpasses analyst expectations of $10.52 billion, indicating robust demand and growth potential in the semiconductor market.
- Super Micro Profit Expectations: Super Micro Computer's stock surged 19% as fourth-quarter profit expectations range from 65 to 79 cents per share, significantly exceeding Wall Street's forecast of 55 cents, with third-quarter adjusted earnings of 84 cents showcasing its competitive edge in the server market.
- Jacobs Solutions Guidance Raised: Jacobs Solutions' shares fell 2% despite beating second-quarter adjusted earnings and revenue expectations, as the company raised its full-year earnings guidance to between $7.10 and $7.35 per share, reflecting business resilience.
- Lucid Group Misses Estimates: Lucid Group's stock dropped 2% after reporting a first-quarter loss of $3.46 per share, significantly worse than the expected $2.64 loss, with revenue of $282.5 million falling short of the $440.4 million forecast, highlighting challenges in the electric vehicle market.
See More
Super Micro Computer Faces Class Action Lawsuit
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Super Micro Computer, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by May 26, 2026.
- Details of Allegations: The U.S. Department of Justice has indicted three executives from Super Micro for illegally diverting approximately $2.5 billion worth of servers to China, violating U.S. export control laws to drive sales and revenue.
- Stock Price Plunge: Following the lawsuit announcement, Super Micro's stock price fell by $10.26, or 33.32%, closing at $20.54 per share on March 20, 2026, indicating the market's acute sensitivity to the company's legal risks.
- Long-term Legal Implications: The lawsuit and related allegations could result in substantial damages and reputational harm for Super Micro, potentially impacting its competitiveness and investor confidence in the global market.
See More
Super Micro Reports Strong Quarterly Guidance Despite Revenue Miss
- Quarterly Performance Beat: Super Micro's latest earnings report shows adjusted earnings per share of 84 cents, surpassing the market expectation of 62 cents, although revenue came in at $10.24 billion, below the expected $12.33 billion, indicating strong performance in the AI market.
- Revenue Growth Year-over-Year: The company reported a 123% year-over-year revenue increase in the third quarter, reflecting a surge in demand in the artificial intelligence and enterprise sectors, despite facing other challenges.
- Executive Changes Impact: Super Micro severed ties with a co-founder implicated in a federal indictment in March, with the CEO stating that the company may have been a victim of elaborate schemes orchestrated by these individuals, affecting its reputation and operations.
- Expansion Plans: Super Micro has added new manufacturing facilities in Silicon Valley, with its fourth Bay Area location expected to exceed 714,000 square feet, equipped for manufacturing, design, testing, and service, demonstrating the company's strong response capability to the growing demand in AI and enterprise markets.
See More
