New York, Jan 13, 2026, 16:16 ET — After-hours
- Shares of SMCI dropped roughly 5% following Goldman Sachs kicking off coverage with a Sell rating and a $26 price target
- Wall Street’s attention pivots from AI-driven server expansion to earnings and pricing strength
- The next catalyst: quarterly earnings date is still unconfirmed, but February is the target.
Shares of Super Micro Computer dropped roughly 5% in after-hours trading Tuesday, last seen at $28.61. The decline followed Goldman Sachs kicking off coverage with a “sell” rating and a 12-month price target of $26. During the session, the stock touched its lowest point since April. (Finviz)
The call is crucial now since Super Micro is right in the thick of the AI infrastructure boom, providing servers and storage solutions to enterprise data centers and cloud vendors. Hardware stocks have lost some patience with companies where profits fail to keep pace with sales growth. (Reuters)
Markets reacted to December’s inflation figures and braced for the Federal Reserve’s policy meeting on Jan. 27-28, a backdrop that tends to amplify volatility in rate-sensitive tech stocks. The CPI climbed 2.7% year over year, with core CPI at 2.6%. “The core CPI has increased by 0.4% or more every January for the past four years,” noted Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets. (Bureau of Labor Statistics)
Goldman Sachs analyst Katherine Murphy said Super Micro is set to stay “a leader in the AI server market in the medium term,” but she raised concerns over “limited visibility into improving profitability” as the company pursues large AI deployments. Murphy called the firm a “price-taking” player, highlighting margin pressure, a concentrated customer base, and a supplier mix that leaves little room to raise prices. Her target price suggests about 15% downside from current levels. (Investing)
Goldman’s earnings outlook stands well below the broader Street consensus. StockStory noted that Murphy’s EPS estimates trail consensus by roughly 10% — earnings per share being profit divided by shares outstanding — and cautioned that margin pressure might linger despite potential revenue growth. (StockStory)
Super Micro is still a crowded, volatile play. Short interest hovers around 17% of the float, based on data from Finviz, a level that can amplify moves sharply in either direction when the stock gaps. (Finviz)
The company is pushing its AI narrative beyond just data centers. On Sunday, it revealed partnerships to roll out “intelligent” in-store retail systems powered by NVIDIA RTX PRO accelerated computing. CEO Charles Liang said, “AI is reshaping shopping experiences.” One partner, Everseen, is zeroing in on “the realities of the store floor,” offering computer-vision tools designed to cut retail shrink. (Super Micro Computer)
Elsewhere, investors sifted through tech winners and losers following the inflation data, with chip stocks reacting to analyst updates and earnings buzz. Super Micro stood out as one of the day’s biggest decliners after issuing a margin warning. (Barron’s)
Still, the downside isn’t just a one-off from an analyst note. Barchart pointed out that Goldman flagged the company’s heavy reliance on a few key customers and weak pricing power. That raises the stakes for future deals potentially cutting into profits. If a major buyer slows down, or if component costs get squeezed again, the margin concerns will resurface quickly. (Barchart)
The next major trigger is earnings. Wall Street Horizon shows Super Micro set to report on Feb. 9 after the close, though the date remains unconfirmed. Traders will be focused on any indication margins have hit bottom and if order timing sharpens before the following session and week. (Wallstreethorizon)
