Samik Chatterjee, an analyst at JPMorgan, remains bearish about Super Micro Computer Inc. (NASDAQ: SMCI), even though it has guided for a $40 billion revenue in fiscal 2026.
Chatterjee’s focus is on the fact that SMCI missed its estimates in its second fiscal quarter and lowered last night its full-year sales outlook.
He continues to rate Supermicro as “underweight”. He sees it falling to $35, which would indicate a potential 15% drop from current levels.
Why does JPM remain dovish about SMCI stock
Investors tend to place more emphasis on the future outlook than the current quarter’s results.
The JPM analyst is not impressed with Super Micro Computers’ guidance, as he isn’t convinced that the AI-server company will be capable of pushing its revenue to $40 billion in the next year.
In a research note he sent to clients on Wednesday, he said that SMCI must provide proof of its aggressive FY26 revenue/margin targets before it can be credited.
Supermicro does not pay a dividend at this time, making it unattractive to those who are interested in establishing a passive income source.
Supermicro stock faces increased competitiveness
Samik Chatterjee believes that Supermicro’s Q2 earnings will have been affected by supply chain constraints.
He warns against owning SMCI at current levels, as these issues may continue to be a significant headwind in the future.
The analyst also added that the “upcoming AI product cycle represents a higher competitive background with peers now boasting a stronger portfolio and looking to participate more meaningfully in the industry,” in his report.
Other analysts, such as Matt Bryson from Wedbush Securities or Quinn Bolton from Needham, also expect Super Micro Computer’s revenue guidance for fiscal year 2026 to fall short.
Plus, a lot of the good news is already reflected in the SMCI share price. They’ve already risen more than 50% in the past two weeks.
Super Micro Computer Q2 Earnings Highlights
On Tuesday, the Nasdaq listed company reported 59 cents per share (adjusted), on $5.65 billion of revenue.
Analysts, on the other hand, were at 61c per share and $5.77billion respectively.
Super Micro Computer also reduced its guidance for fiscal year 2025 to a maximum amount of $25 billion last night.
Its earlier guidance was instead for $26 billion – $30 billion. Charles Liang, the company’s CEO, told investors that:
Supermicro’s direct-liquid cooling is the industry leader, and we expect that over 30% of all new data centres will adopt it within the next year. This includes Nvidia Blackwell.
Last week, the San Jose-based company announced that its AI data center Building Block Solutions powered on Nvidia’s Blackwell platform are now available in full production.
This post JPMorgan remains underwhelmed with Supermicro despite ambitious guidelines may be modified as new developments unfold
This site is for entertainment only. Click here to read more
