New York, Jan 14, 2026, 05:15 EST — Premarket
- SMCI slipped roughly 0.3% in premarket trading, following a 5% decline the day before
- Goldman Sachs kicked off coverage with a “Sell” rating and set a $26 price target
- Investors are focusing closely on profit margins and delivery schedules ahead of the next quarterly update
Shares of Super Micro Computer (SMCI.O) slipped 0.3% in early trading Wednesday, following a 5.1% drop the day before. Goldman Sachs kicked off coverage with a “sell” rating, highlighting concerns over tightening margins. The stock last traded at $28.52, down slightly from Tuesday’s close of $28.60. (StockAnalysis)
This call is crucial as Super Micro operates in a packed segment of the AI hardware market: it delivers high-end servers packed with pricey parts, where slight shifts in pricing or product mix can dramatically affect profits.
Investors now see this more as a margin story than merely a revenue one. When gross margin—what remains after product costs—takes a hit, it can overshadow any growth headlines.
Goldman analyst Katherine Murphy said she sees “limited visibility into improving profitability” as the company continues to push large, margin-dilutive deals. She noted gross margin has “halved in the last three years to 9.5%” in the latest quarter and cautioned that “there could still be further downside to margins,” even with strong revenue growth. (Investing)
Murphy pointed out a tricky gap between major suppliers and a small cluster of big clients, noting that bigger competitors boast more extensive sales and support teams. Goldman highlighted this by comparing Super Micro’s reach with Dell’s, which features a significantly larger sales force.
The squeeze arrives even as management pushes ahead with ambitious growth targets. Back in November, the company projected fiscal second-quarter revenue between $10 billion and $11 billion and upped its full-year revenue forecast to $36 billion. This came after it said about $1.5 billion in revenue shifted across quarters due to a major customer’s last-minute requests for configuration upgrades. CEO Charles Liang pointed to the “complexity of these new graphics processing unit (GPU) racks,” referring to the chips powering AI training and operations. (Reuters)
Yet a rapid revenue surge doesn’t ensure smooth sailing for the shares. Should price pressures linger or deliveries falter once more, analysts might revise earnings forecasts downward despite steady demand.
Traders will be focused on whether other brokers join Goldman in highlighting margin risk, or if the company can demonstrate steadier profits as shipments increase. Any clues about component costs, pricing power, or customer concentration could quickly sway the stock.
Super Micro’s fiscal Q2 earnings are set for Feb. 3 after markets close, though that date could change. TipRanks flags this as the next major catalyst. (Tipranks)
