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

Super Micro Computer, Inc. (NASDAQ:SMCI) is 1 of the 10 AI Stocks to Keep connected Your Radar. On February 4, Barclays expert Tim Long lowered the terms people connected Super Micro Computer (NASDAQ: SMCI) to $38.00 (from $43.00) portion maintaining an “Equal Weight” rating.

Discussing SMCI’s net report, Barclays noted however December 4th results exceeded expectations connected some gross and earnings. SMCI posted gross of $12.7 billion, which represents a 153% quarter-over-quarter summation and besides exceeds Barclays’ estimation by much than $2 billion.

However, gross borderline came successful astatine 6.4%, which is somewhat beneath the expert firm’s 6.5% estimate. The absorption forecast’ fiscal third-quarter gross to beryllium astatine slightest $12.3 cardinal and lifted its full-year 2026 gross guidance to astatine slightest $40 billion, successful enactment with analysts’ expectations of 66% gross maturation this fiscal year.

Gross borderline is anticipated to amended by 30 ground points quarter-over-quarter successful the adjacent quarter, albeit inactive remaining beneath 7%. The steadfast added that Data Center Building Block Solutions (DCBBS) is apt to summation successful the nett mix.

According to the firm, SMCI’s fiscal 2026 guidance points to a sequential forth-quarter deceleration, but views this arsenic conservatism. It expects momentum to prolong done the 2nd fractional of the year.

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Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and retention solutions for information centers, unreality computing, AI, and borderline computing worldwide.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.