Particle.news
Download on the App Store

Super Micro Stock Reels as Momentum Gauge Plunges on Margin Pressure

A steep loss in momentum reflects margin compression from costly AI rack ramps after a Q1 miss.

Overview

  • SMCI’s Benzinga Edge momentum score dropped from 72.05 to 20.83 this week, placing the stock in the bottom quintile for relative strength.
  • Shares have fallen 36.3% over the past month and roughly 31% across 21 trading days, with technical watchers eyeing support near $30.
  • Fiscal Q1 2026 revenue was $5.01 billion versus $5.99 billion expected, and adjusted EPS was $0.35 compared with a $0.40 consensus.
  • Gross margin narrowed to 9.3% as expenses rose to ramp large liquid‑cooled AI clusters, intensifying near‑term pressure on the stock.
  • Management cites more than $13 billion in Nvidia Blackwell Ultra orders and targets at least $36 billion in FY2026 revenue, while analysts maintain a Buy consensus with a $193 median price target.