Barclays Trims Super Micro (SMCI) Target Despite Strong AI Server Demand

Core Viewpoint - Super Micro Computer, Inc. (NASDAQ: SMCI) is recognized as a significant player in the AI sector, despite Barclays lowering its price target to $38.00 from $43.00 while maintaining an "Equal Weight" rating [1]. Financial Performance - In the December quarter, Super Micro Computer reported revenue of $12.7 billion, marking a 153% increase quarter-over-quarter and exceeding Barclays' estimate by over $2 billion [2]. - The gross margin for the quarter was 6.4%, slightly below Barclays' estimate of 6.5% [3]. - Management forecasts fiscal third-quarter revenue to be at least $12.3 billion and has raised its full-year 2026 revenue guidance to at least $40 billion, aligning with analysts' expectations of 66% revenue growth for the fiscal year [3]. Future Outlook - Gross margin is expected to improve by 30 basis points quarter-over-quarter in the next quarter, although it will still remain below 7% [4]. - The Data Center Building Block Solutions (DCBBS) segment is anticipated to increase its contribution to profits [4]. - Barclays views the fiscal 2026 guidance as conservative, expecting momentum to continue through the second half of the year despite a projected sequential deceleration in the fourth quarter [4]. Company Overview - Super Micro Computer, Inc. designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing globally [5].