Super Micro Computer Stock Drops 9% Amid Weak Q1 Earnings, Mizuho Analyst Cautious on AI Server Maker
Super Micro Computer (SMCI) shares fell 9% in pre-market trading after disappointing Q1 fiscal 2026 results, extending losses as rising costs overshadow strong AI server demand. Mizuho's top analyst Vijay Rakesh cut his price target from $50 to $45, maintaining a Neutral rating despite the company's bullish $10.5 billion December-quarter revenue guidance.
The AI server specialist reported $5.02 billion in September-quarter revenue, missing Wall Street's $6.09 billion estimate but securing $12 billion in new design wins. Rakesh, ranked #35 among 10,109 analysts on TipRanks with a 30.50% average return, noted operational challenges could pressure margins even as Blackwell Ultra program orders reach $13 billion.