Super Micro's Guidance Signals a Sharp Acceleration, Easing Fears It's Losing Ground to Rivals

Shares of Super Micro Computer Inc (NASDAQ:SMCI) rallied in early trading on Wednesday, after the company reported its fiscal fourth-quarter results.

Here are the key analyst takeaways:

• Wedbush analyst Matt Bryson maintained a Neutral rating, while raising the price target from $34 to $40.
• Rosenblatt Securities analyst Sajal Dogra reiterated a Buy rating, while lifting the price target from $45 to $51.
• Needham analyst Quinn Bolton reaffirmed a Buy rating and price target of $46.

Check out other analyst stock ratings.

Wedbush: Super Micro Computer reported surprisingly strong gross margins of 17.6%, more than double the guided 8.2%-8.4%, Bryson said in a note. This drove earnings to $1.70 per share, significantly higher than the outlook of 65-79 cents per share, despite revenues of $11.1 billion coming near the low end of the guidance range, he added.

Management indicated that the revenue shortfall was due to issues with customer readiness rather than demand, the analyst stated. "FQ1 guidance suggests that while the margin upside largely dissipates, the dip is softened by stronger sales expectations," he further wrote.

Rosenblatt Securities: Super Micro Computer’s strong beat-and-raise quarter should eliminate concerns around the company’s market share loss, Dogra said. Management guided revenue to $14.5 billion-$15.5 billion for the fiscal first quarter, implying 35% sequential growth at the midpoint and around 27% above prior consensus of $11.8 billion, he stated.

The company’s fiscal 2027 revenue guidance came in almost 30% higher than Street expectations, the analyst added. "SMCI is moving from an $11B quarter to a $15B quarterly run-rate in one quarter," he further wrote.

Needham: Super Micro Computer missed revenue expectations, while delivering an earnings beat on stronger gross margins, Bolton said. He highlighted:

• Revenue in the enterprise channel represented 50% of fourth-quarter sales versus 28% in the prior quarter, with AI solutions representing 60%.
• Fiscal 2027 revenue guidance was raised to $68.5 billion at the midpoint, well above Street expectations of $54.4 billion.
• Management reiterated their $60 billion backlog figure.
• Backlog suggests that AI solutions will revert to 80%.

SMCI Stock Price Activity: Super Micro Computer shares were up 12.91% at $35.68 on Wednesday, according to Benzinga Pro data.

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