Super Micro Shows Margin Weakness Despite Strong AI Demand: Analyst
Portfolio Pulse from Anusuya Lahiri
Super Micro Computer, Inc (NASDAQ:SMCI) shows margin weakness despite strong AI demand, leading to a significant drop in stock price. Analysts from Bank of America, Goldman Sachs, KeyBanc, and JPMorgan have adjusted their ratings and price targets, citing concerns over gross margins and competitive pricing.
August 07, 2024 | 6:40 pm
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Super Micro Computer, Inc (NASDAQ:SMCI) shows margin weakness despite strong AI demand, leading to a significant drop in stock price. Analysts from Bank of America, Goldman Sachs, KeyBanc, and JPMorgan have adjusted their ratings and price targets, citing concerns over gross margins and competitive pricing.
The significant drop in SMCI's stock price is driven by concerns over weaker-than-expected gross margins despite strong AI demand. Multiple analysts have downgraded their ratings and reduced price targets, indicating a negative short-term outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
JPMorgan analyst Samik Chatterjee mentioned limited impact on Super Micro from delays to Nvidia Corp’s (NASDAQ:NVDA) Blackwell GPU solutions, as Super Micro remains conservative in its plans around next-generation solutions.
While NVDA's delays in Blackwell GPU solutions are mentioned, the impact on SMCI is expected to be limited. This suggests a neutral short-term impact on NVDA.
CONFIDENCE 80
IMPORTANCE 30
RELEVANCE 20