SMCI Stock Alert: 5 Analysts Lower Price Target for Super Micro Computer

Core Insights - Super Micro Computer (NASDAQ:SMCI) reported a revenue growth of 143.6% to $5.31 billion, slightly exceeding analyst expectations of $5.30 billion, but its adjusted EPS of $6.25 fell short of the estimate of $8.07 [1] - The company provided strong guidance, projecting first quarter revenue between $6 billion and $7 billion, significantly higher than the analyst estimate of $5.46 billion, and for the fiscal year ending June 30, 2025, it expects revenue between $26 billion and $30 billion, compared to the estimate of $23.4 billion [2] - CEO Charles Liang stated that the company is positioned to become the largest IT infrastructure company, emphasizing their technology leadership [3] Financial Performance - Super Micro's gross margin declined to 11.2% from 17% a year ago and 15.5% from the previous quarter, attributed to a significant increase in cost of sales, which rose to $4.71 billion from $1.81 billion year-over-year, outpacing revenue growth [4] - Following the earnings report, analysts from Bank of America and other firms lowered their price targets due to concerns over declining margins and competitive pressures [5][6] Analyst Reactions - Bank of America analyst Ruplu Bhattacharya reduced the price target from $1,090 to $700 and changed the rating from "buy" to "neutral," citing challenges in margins and competitive pricing [5] - Other analysts also adjusted their price targets downward, with Barclays lowering its target to $693, Goldman Sachs to $675, Wells Fargo to $650, and Wedbush to $620 [6]