With SEC Deadline Looming, Goldman Sachs Raised Its Price Target on Super Micro Computer Stock

Super Micro Computer (SMCI) runs the risk of getting delisted if it fails to file its long overdue quarterly and annual financial reports on Tuesday, Feb. 25. 

Shares of the AI server company are down nearly 10% in intraday trading as the Nasdaq deadline looms large. Part of the weakness in SMCI on Tuesday may be related to a dovish note from Goldman Sachs. 

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While the firm’s analyst Michael Ng raised his price target on Super Micro stock to $36 today, his revised estimate, nonetheless, indicates potential downside of another 20% in the AI stock from current levels. 

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Why Is Goldman Sachs Dovish on SMCI Shares?

Ng’s research note arrives only days after Super Micro reported preliminary results for the second quarter that missed consensus estimates on both top and the bottom lines.   

The artificial intelligence company guided for $0.54 a share of earnings on $5.5 billion in revenue for its current financial quarter. Analysts, in comparison, were at $0.65 per share and $5.9 billion, respectively. 

Note that SMCI shares do not currently pay a dividend to make it any more appealing to own them through the turbulence either. 

Super Micro Stock Has to Deal With Other Overhangs

Even if Super Micro Computer files its delayed reports on Tuesday, it wouldn’t entirely be out of the woods just yet. 

Why? Because the AI server company is currently under investigation by the U.S. Department of Justice (DOJ) as well as the Securities and Exchange Commission (SEC). That remains a meaningful overhang on SMCI. 

Additionally, there have been reports that Super Micro lost share to its rivals, including Dell Technologies (DELL) and HP Enterprise (HPE), while it was dealing with allegations of financial misconduct and failure to adhere to export controls put forth by Hindenburg Research in August. 

Versus its 52-week high, Super Micro stock is currently down about 60%. 

Has the Super Micro Stock Selloff Gone Too Far?

On the plus side, CEO Charles Liang recently guided for $40 billion in revenue for its fiscal 2026 – well above $29 billion that analysts had called for. 

That may be why the mean target on SMCI stock currently sits at $52.68, indicating 13% upside from current levels. 

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.