New York, Feb 5, 2026, 11:25 EST — Regular session
- SMCI was down about 11% in mid-session trade, after a sharp post-earnings jump a day earlier.
- Supermicro raised its fiscal 2026 revenue floor to $40 billion, but gross margin fell to just over 6% in the December quarter.
- Traders are watching whether margins recover in the March quarter as Wall Street trims targets and stays split on the stock.
Shares of Super Micro Computer fell about 11% on Thursday, reversing a chunk of the AI-server maker’s post-earnings rally a day earlier. The stock was last down $3.79 at $29.97.
Supermicro, based in San Jose, California, has become a read-through on data-center spending because it builds server systems around chips from Nvidia and Advanced Micro Devices. “Super Micro’s growth is tied to its importance as the integrator to large cloud and AI customers,” said Gadjo Sevilla, a technology analyst at Emarketer. (Reuters)
The company’s latest outlook also landed with a thud in one place: profitability. Supermicro reported net sales of $12.7 billion for its fiscal second quarter ended Dec. 31, while gross margin — the slice of revenue left after product costs — fell to 6.3%; non-GAAP earnings, which exclude items such as stock-based compensation, were 69 cents per share. It forecast third-quarter net sales of at least $12.3 billion and said fiscal 2026 net sales should be at least $40.0 billion. (Super Micro Computer)
Thursday’s drop follows a volatile Wednesday for AI-linked names, with investors yanking money out of pricey growth stocks even as Supermicro jumped 13.8% on the day. The Nasdaq ended that session down 1.5%, Reuters reported. (Reuters)
A regulatory filing showed the company furnished the earnings release in a Form 8-K filed with the U.S. Securities and Exchange Commission. (SEC)
On the Street, analysts leaned cautious even after the revenue beat. Mizuho analyst Vijay Rakesh raised his price target to $33 from $31 and kept a Neutral rating, flagging competition and margin pressure as ongoing challenges. (TipRanks)
Needham, meanwhile, lowered its target to $40 from $51 while maintaining a Buy rating, an Investing.com report said. The firm pointed to valuation “multiple” compression across AI hardware, while still highlighting traction in Supermicro’s DCBBS (Data Center Building Block Solutions) offering. (Investing)
Executives tried to sell the margin story as “not forever.” On the earnings call, CEO Charles Liang said the company was trying to be “conservative” in committing to a $40 billion sales floor and tied current component shortages to demand strength, not reduced capacity. (Investing)
But the company’s own disclosures lay out the risks if that rebound takes longer. Supermicro warned that as it targets larger customers, its base could become more concentrated and sales less predictable, and it cited tariffs as a potential headwind; it also reported inventories of about $10.6 billion and accounts receivable of about $11.0 billion at quarter-end. (Nasdaq)
What traders are watching next is simple: does gross margin start to lift in the March quarter as volumes ramp and supply constraints ease, or do price and cost pressures stick. Supermicro’s next earnings report is scheduled for May 5, according to Investing.com. (Investing)
