Analysts Shift Super Micro Price Targets Ranging $27–$40 on Margin Pressure
On February 4, Mizuho raised Super Micro’s price target to $33 from $31 while Barclays cut to $38 from $43 and Needham trimmed to $40 from $51, citing margin pressure and AI hardware competition. Goldman kept $27 target and Sell rating despite Q2 revenue of $12.7 billion and EPS of $0.69.
1. Analyst Price Target Changes
On Feb 4, Mizuho raised Super Micro’s price target to $33 from $31 following strong results, while Barclays lowered its target to $38 from $43 and Needham trimmed to $40 from $51, reflecting multiple compression in AI hardware valuations and ongoing margin headwinds.
2. Q2 Financial Performance
In Q2 FY2026, Super Micro reported revenue of $12.7 billion, above its own guidance of $10 billion to $11 billion, and EPS of $0.69 versus forecasts of $0.50, though gross margin compressed to 6.4% below the 6.5% estimate due to large-customer pricing power and expedited shipping costs.
3. Outlook and Competitive Challenges
Despite the earnings beat, Goldman Sachs maintained a Sell rating with a $27 target, highlighting uncertainty around margin recovery, upcoming technology transitions and intensified competition in the AI server market.