Goldman Sachs Downgrades Super Micro Computer, Citing Valuation and Competitive Pressures

Super Micro's stock, up 38% in 2025, faces a bearish outlook as Goldman predicts a 20% drop amid margin risks and intensified competition.

Super Micro Computer's stock has surged 38% year-to-date, driven by optimism around AI infrastructure and Nvidia Blackwell chip shipments.
Goldman Sachs downgraded the stock from 'Neutral' to 'Sell,' lowering the price target to $32 and citing valuation concerns and competitive risks.
The company expects to achieve $40 billion in revenue by FY 2026, fueled by demand for AI servers, despite mounting margin pressures.
Analysts highlight risks from increased competition, product transition challenges, and supplier and customer concentration issues.
Super Micro recently avoided a Nasdaq delisting by resolving internal control issues and filing delayed financial reports in February 2025.