Goldman’s Katherine Murphy Reiterates Sell on Super Micro Computer, Keeps $30 Price Target Unchanged on Concentration Risks

Analyst Katherine Murphy of Goldman Sachs maintained a Sell rating on Super Micro Computer, retaining the price target of $30.00.

Katherine Murphy has given his Sell rating due to a combination of factors tied to Super Micro Computer’s elevated customer concentration risk and limited revenue diversification. The company’s latest 10-Q shows that one data center client accounted for roughly 27% of quarterly sales and nearly 39% of year-to-date revenue, following an even higher 63% share in the prior quarter, which heightens exposure to any change in that customer’s spending patterns.

Another large enterprise client contributed just over 10% of quarterly revenue, while former key customers have fallen below the 10% threshold, suggesting a shifting and potentially unstable large-account base. At the same time, higher-margin services and software remain only about 1% of total revenue, indicating the business is still heavily dependent on hardware volumes, and the unchanged $30 price target reflects Goldman’s view that the current valuation already more than discounts the company’s growth profile.

SMCI’s price has also changed moderately for the past six months – from $38.820 to $33.520, which is a -13.65% drop .