Super Micro Computer (SMCI) shares dropped 15% in pre-market trading after the company posted disappointing Q4 FY25 results and cut its revenue outlook for Fiscal 2026. The new revenue forecast of at least $33 billion was $7 billion below the company’s earlier target, sparking investor concern. Following the results, Wall Street analysts offered mixed reactions, with some highlighting near-term risks while others pointed to longer-term growth potential.
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JPMorgan Remains Cautious on SMCI
JPMorgan’s Top analyst Samik Chatterjee kept a Neutral rating on Super Micro and slightly lowered his price target to $45 from $46. The five-star analyst said the company’s Q4 miss was due to tighter budgets and reduced orders from major clients, marking another quarter where SMCI fell short of its own goals.
While SMCI’s new FY26 revenue forecast of at least $33 billion topped Wall Street’s expectations, it still came in well below the $40 billion target the company had previously shared. He also cautioned that growing price pressure may make it harder for SMCI to expand without hurting margins.
On the positive side, he highlighted SMCI’s new DCBBS (Data Center Building Block Solutions) offering, which aims to speed up data center buildouts and could help boost profits over time. He also pointed to an expanding customer base. However, he warned that slower spending from large clients may limit near-term growth.
Raymond James Sees Strong Growth Ahead
Meanwhile, Raymond James analyst Simon Leopold kept an Outperform rating on Super Micro and raised his price target to $53 from $41. He acknowledged the Q4 miss and weaker Q1 earnings outlook, but said the company’s strong growth forecast for FY26 was better than expected.
Going ahead, Leopold expects margins to improve as SMCI benefits from a stronger mix of customers and products. With better availability of Nvidia’s (NVDA) Blackwell GPUs, he believes SMCI is well-positioned to drive strong sales in the coming quarters.
Is SMCI Stock a Good Buy?
Turning to Wall Street, SMCI stock has a Moderate Buy consensus rating based on six Buys, seven Holds, and two Sells assigned in the last three months. At $44.57, the average Super Micro Computer stock price target implies 22.16% downside potential.
