Shares of Super Micro Computer (SMCI) jumped about 8% premarket on Wednesday after fiscal second-quarter results and outlook surpassed estimates, drawing largely positive reactions from analysts.
Wedbush kept its Neutral rating and $42 price target on the shares of Super Micro, which provides data center infrastructure solutions.
“The last few quarters, SMCI had consistently fallen shy of management’s ambitious sales expectations, while also struggling to meet even declining GM [gross margin] forecasts. FQ2’26 marked a sharp reversal vs. this trend as Supermicro not only vaulted over a high sales bar, but also managed to both meet GM expectations and lift the gross margin outlook for the current quarter (despite a difficult supply backdrop characterized by higher commodity costs),” said the analysts led by Matt Bryson.
Needham maintained its Buy rating but cut the price target on the stock to $40 from $51.
Analysts led by N. Quinn Bolton said that Super Micro reported fiscal second quarter revenue of $12.68B versus Street’s estimate of $10.43B, and guided fiscal third quarter revenue to $12.3B versus Street’s estimate of $10.250B. The analysts noted that the beat is attributed to a major customer’s data center deployment.
The analysts’ key takeaways include: Firstly, the company raised its fiscal year 2026 revenue outlook to at least $40B, versus prior guidance of $36B. The company’s management believes this forecast is still conservative, as it implies a steep revenue decline in the fiscal fourth quarter, the analysts added.
Secondly, the company’s Data Center Building Block Solutions, or DCBBS, is gaining momentum across key customers. Notably, DCBBS accounted for 4% of profit in the first half of fiscal 2026, and management expects it to increase to a double-digit percentage by calendar year 2026, the analysts noted.
Thirdly, Bolton and his team said that “F3Q26 NG [non-GAAP] gross margin declined ~310bps to 6.4%. The decline was largely driven by a major customer’s (63% of total revenue) data center deployment, which required expedited shipments of certain components. Additional headwinds included higher component costs due to supply shortages and ongoing tariff pressures. While NT GM remain compressed, management believes F2Q26 marked the trough and expects GM to expand as DCBBS become a larger portion of revenue.”
GF Securities kept its Hold rating and $36 price target on Super Micro’s stock.
“SMCI’s F2Q26 EPS results of $0.69 was higher than market consensus of $0.49 driven by strong top-line, despite the previously announced delayed revenue. On the other hand, the company raised the FY26 revenue outlook to at least $40bn, from at least $36bn last time,” said analysts led by Jeff Pu.
The analysts added that the company’s margin of 6.4% was lower than Bloomberg consensus but shows signs of stabilization, as Super Micro’s management expects a better cost profile and DCBBS contribution.
“Nevertheless, we would wait for more visibility on both margin and GB/VR [NVIDIA GB300 NVL72/Vera Rubin] order sustainability,” the analysts noted.
Earlier this month, Super Micro, Nebius (NBIS), and CoreWeave (CRWV) said they will start offering Nvidia’s (NVDA) Vera Rubin NVL72 graphics processing units this year.
Related stocks: CoreWeave fell about 3%, while Nebius dipped around 2% premarket on Wednesday.