Goldman Sachs Group, Inc. defends Super Micro Computer, Inc. (SMCI.US): short-term guidance weak, AI prospects still promising.

Goldman Sachs Group, Inc. released a research report, giving Super Micro Computer, Inc. a "neutral" rating with a target price raised from $32 to $36. Super Micro Computer, Inc. previously announced preliminary financial information for the second quarter of the 2025 fiscal year ending December 2024. The company expects adjusted earnings per share for the second quarter to be $0.58-0.60, lower than Goldman Sachs Group, Inc. / market consensus of $0.62 / $0.61. The company's Q2 revenue and gross margin guidance were also below expectations, primarily due to the ongoing transition from the Hopper to the Blackwell platform. The guidance for the third quarter of the 2025 fiscal year for Super Micro Computer, Inc. was below expectations, and the company also revised down its guidance for the 2025 fiscal year, although the revenue guidance for the 2026 fiscal year exceeded expectations. Super Micro Computer, Inc. expects revenue to reach $40 billion in the 2026 fiscal year, well above the market's expectation of $29 billion, and anticipates an annual growth rate of over 60% in the coming years. Considering the company's historical growth rate, the $40 billion target is too conservative. Super Micro Computer, Inc. reaffirmed that it expects to submit its 10-K annual report for the year ending June 30 and its 10-Q quarterly report for the quarter ended September to the U.S. Securities and Exchange Commission before February 25. Goldman Sachs Group, Inc. raised its average earnings per share expectations for the Super Micro Computer, Inc. for the 2025/26/27 fiscal years by 5% to reflect the company's positive outlook for continued growth of over 60% in the 2026/27 fiscal years. Goldman Sachs Group, Inc. stated that Super Micro Computer, Inc. is a winner in the field of artificial intelligence (AI) and is in a very favorable position in meeting the needs of AI cloud service providers in the coming years. However, competition in the AI infrastructure services market may become more intense with the participation of enterprise IT hardware suppliers such as Dell Technologies, Inc. Class C and Cisco Systems, Inc. over time. Super Micro Computer, Inc. closed nearly 8% lower on Monday, at $51.61.