Super Micro Jumps 11% on TSMC Spending Surge and AI Chip Optimism
Analyst caution over compressed margins, including a Goldman Sachs Sell rating, tempers the rally ahead of late-January earnings.
Overview
- TSMC lifted its 2026 capital spending outlook to $52–$56 billion, a 33%–37% increase, and reported fourth-quarter net income up 35% with sales up 20.5%.
- Super Micro shares rose 10.94% on Friday to close at $32.64, tracking gains across AI infrastructure names.
- The rally reflects Super Micro’s exposure to Nvidia GPUs, which are fabricated by TSMC, linking demand trends across the supply chain.
- Goldman Sachs initiated coverage with a Sell rating and a $26 price target, flagging margins around 9.5% and limited visibility into sustained profitability.
- Super Micro secured a $2 billion revolving credit facility and announced AI retail collaborations with Everseen, Kinetic Vision, and Nvidia, with Q2 FY2026 results expected in the last week of January.