Core Viewpoint - Certain Wall Street analysts recommend selling Super Micro Computer and Intel, citing concerns over their competitive positions and future performance despite recent stock gains driven by excitement around artificial intelligence (AI) [1] Super Micro Computer - Super Micro Computer has seen a year-to-date share increase of 57%, attributed to its involvement in AI server solutions [1] - The company reported a 7% revenue increase to $5.8 billion in Q4 fiscal 2025, but gross margin fell by 70 basis points and non-GAAP net income dropped by 24%, indicating potential loss of pricing power [5] - Analysts expect Supermicro's adjusted earnings to grow at 22% annually over the next two years, making its current valuation of 29 times earnings appear reasonable, although past overestimations raise concerns [6] - Mehdi Hosseini from Susquehanna suggests a target price of $15 per share for Supermicro, indicating a 69% downside from its current price of $48 [7] - The company has missed consensus estimates by an average of 15% over the last five quarters, leading to skepticism about its future performance [8] Intel - Intel's shares have increased by 90% year-to-date, with Q3 revenue rising 3% to $13.7 billion and non-GAAP earnings improving to $0.23 per diluted share from a loss of $0.46 per share last year [1][9] - Despite positive financial results, Intel's market share in server CPUs has dropped by 20 percentage points over the last four years, now accounting for only 63% of shipments [11] - The partnership with Nvidia, which includes a $5 billion investment, is seen as a potential avenue for Intel to regain competitiveness in the AI sector [12] - Analysts project Intel's sales to grow at 2% annually over the next two years, suggesting that its current price-to-sales ratio of 3.1 is expensive [14] - Kevin Cassidy from Rosenblatt Securities recommends a target price of $14 per share for Intel, indicating a 66% downside from its current price of $41 [7]

Group 1: C3.ai Overview - C3.ai has faced significant challenges, including a 19% year-over-year revenue decline to $70.3 million in Q1 fiscal 2026, marking its first revenue miss since going public [7] - The company reported a non-GAAP operating loss of $57.8 million, worsening from a $16.6 million loss in the same quarter the previous year [9] - C3.ai's non-GAAP gross margin decreased by nearly 18 percentage points year-over-year to 52%, primarily due to higher costs and weaker economies of scale [10] Group 2: Analyst Sentiment on C3.ai - Analysts have set a price target of $10 per share for C3.ai, indicating a 43% downside from its current price of $17.80 [4] - The company has withdrawn its full-year fiscal 2026 guidance, suggesting limited revenue visibility [11] - Despite a $2.4 billion market cap, some analysts view the valuation as unjustified given the company's growth issues [12] Group 3: Super Micro Computer Overview - Super Micro Computer reported a 47% year-over-year revenue increase to $22 billion in fiscal 2025, but its Q4 revenue of $5.76 billion fell short of estimates [13] - The company's non-GAAP margin was 9.6%, significantly below its long-term target of 14% to 17% [13] - Operating expenses rose 29% year-over-year to $239 million in Q4, and inventories increased to $4.7 billion [15] Group 4: Analyst Sentiment on Super Micro Computer - Analysts maintain a bearish stance on Super Micro Computer, with a target price of $15, suggesting a 67% downside from its current price of approximately $44.60 [4] - The company trades at roughly 16.9 times forward earnings, which some analysts believe is not justified given the current profitability challenges [17] - Management's expectations for new products to improve profit margins remain uncertain due to a lack of experience in forecasting their financial impact [16]