Super Micro Computer (SMCI) is scheduled to announce its results for the second quarter of Fiscal 2026 after the market closes on Tuesday, February 3. The data center server provider has been seeing strong demand amid the ongoing artificial intelligence (AI) wave. However, there have been concerns about the impact of stiff competition on Super Micro’s margins. SMCI stock is almost flat year-to-date. Currently, Wall Street is cautious on SMCI stock. The company is expected to report Q2 FY26 earnings per share (EPS) of $0.49, reflecting a year-over-year decline of about 4%.
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Meanwhile, revenue is expected to jump 83.5% to $10.42 billion, thanks to AI-led demand for the company’s offerings.
Investors will focus on management’s update on the demand backdrop, supply chain constraints, and margins.
Analysts’ Views Ahead of Super Micro Computer’s Q2 Earnings
Recently, Bank of America analyst Ruplu Bhattacharya reiterated a Sell rating on Super Micro Computer stock with a price target of $34. The 4-star analyst highlighted that while his Fiscal 2026 and 2027 revenue estimates of $37.3 billion and $47.6 billion, respectively, are already higher than the Street’s projections, he sees the possibility of further upside. Bhattacharya noted that the demand for AI servers and racks remains robust. He expects SMCI to benefit from growth at existing customers and business from new customers.
That said, Bhattacharya cautioned about intense rivalry and potential low margins from future large deals due to a competitive bidding process. The analyst expects margins to be under pressure due to overhead costs, expedited costs, and investments in additional engineering support and services.
Meanwhile, Citi analyst Asiya Merchant lowered the price target for SMCI stock to $39 from $48 and reiterated a Hold rating. The 5-star analyst expects hyperscaler data center spending to remain strong, fueling demand for power, storage, connectors, and fiber.
AI Analyst Is Cautious on SMCI Stock
TipRanks’ AI Analyst has a Neutral rating on Super Micro Computer stock with a price target of $33, indicating an upside potential of about 13.4%. The AI Analyst’s cautious stance indicates weakening cash flow and a neutral-to-bearish technical trend. The AI Analyst highlighted that near-term margin and revenue volatility are offsetting a stable balance sheet and continued profitability.
Here’s What Options Traders Anticipate
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders expect about a 12.30% move in either direction in SMCI stock in reaction to Q2 FY26 results.
Is SMCI a Good Stock to Buy?
Heading into earnings, Wall Street has a Hold consensus rating on Super Micro Computer stock based on five Buys, six Holds, and two Sell recommendations. The average SMCI stock price target of $44 indicates 51.2% upside potential from current levels.
