SMCI Stock Forecast & Price Target

Super Micro Computer Inc. has raised its fiscal year 2026 revenue outlook to at least $36 billion, up from the previous estimate of $33 billion, indicating strong confidence in demand driven by advancements in AI and data center solutions. The company is expected to experience sequential revenue growth throughout FY2026, supported by increased engagements in Data Center Building Block Solutions and expanding manufacturing capacities across the U.S., Taiwan, and Malaysia. Furthermore, management anticipates margin improvements as operational scale and global manufacturing efficiencies take effect after the initial ramp phase, providing a robust foundation for the company's future growth trajectory.

Super Micro Computer Inc. experienced a significant decline in revenue during its fiscal first quarter, posting $5.02 billion, which represented a 12.8% quarter-over-quarter decrease and a 15.5% year-over-year decline, falling short of both internal and market expectations. The company has also projected a gross margin decline of approximately 300 basis points for the second quarter due to increased costs associated with the ramp-up of a new product line, adversely affecting profitability. Additionally, the guidance for non-GAAP EPS of $0.50 at the midpoint is below both consensus estimates and the company’s own prior guidance, highlighting challenges in maintaining financial performance amidst a competitive environment and potential technological missteps.