TLDR
- Mizuho cut its price target on SMCI from $33 to $25, keeping a “Neutral” rating
- The stock trades at $23.22, below Mizuho’s new target and InvestingPro’s fair value of $32.45
- SMCI’s co-founder pleaded not guilty to charges of illegally diverting Nvidia-powered servers to China
- Multiple analysts have trimmed price targets; consensus sits at a “Hold” with an average target of $36.50
- Despite strong revenue growth of 123.4% year-over-year last quarter, near-term legal and trade headwinds are weighing on the stock
Mizuho lowered its price target on Super Micro Computer (SMCI) from $33 to $25 on Monday, keeping a “Neutral” rating on the stock. The cut comes as the company faces a mix of legal trouble, trade uncertainty, and competitive pressure.
Super Micro Computer, Inc., SMCI
SMCI opened at $23.22 on Monday, sitting below Mizuho’s new target and well beneath InvestingPro’s fair value estimate of $32.45.
Mizuho still sees AI server demand as a strong tailwind for 2026 and 2027, pointing to Nvidia data center revenues tracking more than 50% year-over-year growth in 2027. Cloud provider capex is estimated at $689 billion for 2026, up 64% year-over-year.
But despite that backdrop, Mizuho flagged near-term risks tied to China trade headlines, suggesting orders could shift toward Dell. The firm noted Dell has a 10 times larger AI service team and a roughly $85 billion pipeline.
Mizuho raised its Dell price target to $215 at the same time it cut SMCI’s.
Legal Trouble Adds Pressure
Adding to the pressure, SMCI’s co-founder Yih-Shyan “Wally” Liaw pleaded not guilty to charges of illegally diverting Nvidia-powered servers to China in violation of U.S. export controls.
That indictment triggered a class action lawsuit in California, with shareholders alleging the company concealed export law violations and misled investors.
Rosenblatt cut its target from $50 to $32 but held a Buy rating, citing the controversy. BofA went further, dropping its target from $34 to $24 with an Underperform rating as the export probe continues.
The stock’s 50-day moving average sits at $29.43 and its 200-day at $35.98. Its 52-week range runs from $19.48 to $62.36.
Despite the pressure, SMCI’s last earnings report was strong. The company posted EPS of $0.69 against a $0.49 estimate, and revenue of $12.68 billion beat expectations of $10.34 billion. Revenue was up 123.4% year-over-year.
SMCI guided Q3 2026 EPS at $0.60, and full-year EPS is forecast at $1.86 by sell-side analysts.
Analyst Consensus Still Cool
The broader analyst picture remains cautious. Of 17 analysts covering the stock, 4 have a Buy, 10 a Hold, and 3 a Sell. The average price target is $36.50.
Needham cut its target from $51 to $40 but kept a Buy. Bernstein SocGen held at Market Perform with a $37 target. Northland set a $22 target with a Market Perform. Argus kept a Hold with no target change.
Institutional ownership stands at 84.06%. Several funds added to positions in Q4, including HSBC, which increased its stake by 13.7%.
SMCI’s gross profit margin of 8% remains a key weakness against competitors, even as overall AI server spend is forecast to grow at a 44% CAGR from 2024 to 2029.
BofA currently holds an Underperform rating with a $24 price target â the most bearish among recent updates.
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