SMCI Stock Drops As Supermicro Projects Delayed

Super micro computer (SMCI) on Thursday lowered sales guidance for the fiscal first quarter ending September 30, saying some customers had delayed deliveries until the current quarter. SMCI stock fell on the news.

The data center specialist, known as Supermicro, cut its fiscal first-quarter revenue target to $5 billion from its previous guidance of $6 billion to $7 billion. The company attributed this shortage to customers updating their project designs, which delayed deliveries by a quarter.

In a press release, the company indicated that the latest designs won more than $12 billion. Supermicro said it is seeing “strong demand” to power its AI systems Nvidia (NVDA) GB300, B300 and RTX Pro processors as well Advanced micro devices (AMD) AMD 355X LC processors.

“Supermicro is seeing outstanding levels of customer engagement for its newly released liquid cooling solutions along with several key customers ramping up large, multi-quadrant deployments,” CEO Charles Liang said in a statement. “We see customer demand accelerating, gaining AI share, and repeat revenue of at least $33 billion for FY2026 with more expected to deliver.”

Supermicro said it will release its first-quarter results and financial guidance on November 4.

On the stock market today, SMCI shares fell by 8.7% to close at 47.92. SMCI stock is in a cup-with-handle base with a buy point of 58.78, according to IBD MarketSurge charts.

SMCI stock gets a raise in its price target

Rosenblatt Securities analyst Kevin Cassidy maintained a buy rating on SMCI shares and raised his price target to 60 from 50.

“The AI ​​data center market is moving very quickly as customers demand leading-edge designs,” Cassidy said in a note to clients Thursday. “We believe Supermicro is nimble enough to respond to customer demands despite the near-term revenue disruption.”

Elsewhere on Wall Street, Wedbush Securities analyst Matt Bryson reiterated his Neutral rating on SMCI stock with a price target of 48. His concerns about Supermicro stock have more to do with earnings.

“We believe AI server deals are becoming increasingly competitive, in part due to a lack of differentiation between vendor systems,” Bryson said in a note to clients on Thursday.

Mizuho Securities analyst Vijay Rakesh also maintained his Neutral rating on SMCI stock, even though his price target is 50. He favors its rival. Dell Technologies (DELL), which he rates as Outperform with a price target of 170.

On Thursday, Dell stock rose 2.7% to close at 154.23.

SMCI stock is on the IBD Tech Leaders list, as are AMD, Dell, and Nvidia.

Follow Patrick Seitz on X at IBD_PSeitz for more stories on consumer technology, software, and semiconductor stocks.

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