New York, January 14, 2026, 10:08 ET — During the regular session
- Shares of Super Micro Computer barely moved in early trading, following a steep decline the day before.
- Goldman Sachs kicked off coverage with a “sell” rating and set a $26 price target, highlighting concerns over margin pressure.
- Investors await the upcoming earnings report for insight into profitability and the composition of deals.
Super Micro Computer shares hovered near $28.6 Wednesday morning, barely moving after Goldman Sachs kicked off coverage with a “sell” rating and pegged a $26 price target. 1
This call is crucial since Super Micro now stands as a key indicator for the AI-server expansion — the debate has moved past whether demand is there, focusing instead on the profit margin the company can hold on every system it delivers.
Wall Street is bracing for a sizable revenue jump in the company’s upcoming results. In its last update back in November, Super Micro projected second-quarter net sales between $10 billion and $11 billion, while forecasting at least $36 billion in net sales for fiscal 2026. The company also reported a non-GAAP gross margin of 9.5% for that quarter. 2
Goldman analyst Katherine Murphy warned the stock shows “limited visibility into improving profitability,” despite the company’s strong position in AI servers, according to a note cited by Investing.com. The firm highlighted risks like margin erosion from big contracts, stiff competition from larger OEMs and budget server makers, plus the company’s weaker bargaining power with suppliers and reliance on a narrow customer base. 3
Super Micro shares dropped 5.0% on Tuesday, ending the day at $28.61. 4
Wednesday morning saw the broader market slip, with the S&P 500 ETF dropping roughly 0.6%, while the Nasdaq-100 ETF fell around 1.2%.
For Super Micro, the question is sharpening. Can it continue landing AI server contracts without sacrificing margins? And will costs outpace revenue as it dives further into enterprise clients?
Bulls face a clear threat: margin pressure could drag on, component costs might rise, or pricing could remain squeezed as competitors vie for the same AI racks. On the other hand, volumes might ramp up, deal terms could get better, and profits hold steady even if growth remains strong.
Next on deck is the company’s quarterly report, expected Feb. 2 according to MarketScreener. That release—and any updates on margin guidance—should shape the stock’s trajectory into February. 5
