Overview
- Goldman Sachs analyst Katherine Murphy initiated coverage with a Sell rating and a $26 price target, flagging pressure on earnings despite strong AI server positioning.
- Super Micro shares fell 5.68% intraday to $28.41 on Tuesday, with the stock down more than 8% over the past 12 months, according to Benzinga Pro data.
- Gross margin declined to 9.3% in Q1 2026 from 13.1% a year earlier as competition from Dell and HPE intensified and the company made price concessions.
- Governance remains a key overhang after internal-control lapses and an auditor resignation, with investors watching for remediation progress and a full year of clean audits after a DOJ probe.
- Operationally, the company is expanding U.S. manufacturing and advanced liquid-cooling capabilities and working with Nvidia to supply rack-scale systems for upcoming Vera Rubin platforms.