Overview

• Bank of America resumed coverage on July 9 with an Underperform rating and a $35 price target for SMCI shares.
• The new target implies roughly 28% downside from current trading levels around $48.95.
• Analysts project Supermicro’s gross margin will fall from 11.3% in fiscal 2025 to 9.4% by fiscal 2027.
• The report highlights intensifying competition, elevated inventories and GPU supply constraints as key headwinds to revenue growth.
• It warns that Supermicro’s liquid-cooling technology could become commoditized, narrowing its differentiation against peers.