Investors in Super Micro Computer were blindsided by a significant revenue forecast revision from the AI server specialist. The company now anticipates first-quarter sales of approximately $5 billion, a stark contrast to the previously projected $6.5 billion. This substantial downward adjustment represents a major setback for market participants who had heavily invested in the artificial intelligence growth narrative.
Market Reaction and Revised Guidance
Wall Street responded harshly to the unexpected development. Super Micro’s stock price tumbled from over $52 to around $48.30, compounding earlier losses that included a 7% decline on Wednesday and a 13% drop over the preceding two weeks.
The company attributed this dramatic revision to postponed customer deliveries for major AI initiatives. According to management statements, “design win upgrades” have shifted a portion of anticipated revenue into the subsequent quarter. The guidance was sharply reduced from the original range of $6-7 billion down to the current $5 billion expectation.
Management Maintains Full-Year Confidence
Despite the disappointing quarterly revision, Super Micro’s leadership continues to project strength for the full fiscal year 2026. The company reaffirmed its annual revenue target of at least $33 billion, citing persistent strong demand for AI infrastructure products.
Should investors sell immediately? Or is it worth buying Super Micro Computer?
Several factors underpin management’s optimistic outlook:
- Design wins exceeding $12 billion scheduled for second-quarter delivery
- Solid customer interest in innovative AI liquid cooling technologies
- Expanding market presence within the artificial intelligence sector
Divergent Analyst Perspectives
Market experts remain deeply divided on Super Micro’s prospects. Rosenblatt Securities recently elevated its price target from $50 to $60 while maintaining a buy recommendation. Conversely, Goldman Sachs rates the stock as a sell candidate with a substantially lower price target of just $30.
Compounding these challenges, the company continues to face governance concerns. Super Micro previously acknowledged “significant weaknesses” in its internal financial reporting controls, creating lingering uncertainty among investors.
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