Why Is SMCI Stock Price Falling Today?

Goldman Sachs initiated coverage on Super Micro Computer with a ‘Sell’ rating and a price target of $26.

• The analyst said that while it expects the company to be a leader in the AI server market in the medium term, there was limited visibility into it improving its profitability. 
• Goldman Sachs added that this was due to large margin dilutive deals, increasing competition from OEMs and ODMs, as well as pressure from higher input costs.
• Earlier this month, Mizuho lowered the price target on Super Micro to $31 from $45 while maintaining a ‘Neutral’ rating on the shares.

Shares of Super Micro Computer Inc. (SMCI) fell nearly 7% on Tuesday after Goldman Sachs initiated coverage on the company with a ‘Sell’ rating and a price target of $26 ahead of its second quarter (Q2) earnings due on Feb. 9, 2026.

According to TheFly, Goldman Sachs said that while it expects Super Micro to ‘continue to be a leader in the AI server market in the medium term,’ there is limited visibility on the company improving its profitability.

The analyst cited the reason above due to large margin dilutive deals, increasing competition from original equipment manufacturers (OEMs) and original design manufacturers (ODMs), as well as pressure from higher input costs.

Super Micro Computer is a California-based technology solutions company that deals in enterprise, cloud, artificial intelligence, metaverse, and IT infrastructure.

AI-Powered Retail Solutions

On Jan 11, Super Micro announced collaborations with several technology partners to deliver AI-powered in-store retail solutions that would meet changing customer expectations and provide partners with scalability, improved productivity and increased profitability.

The company will employ its own Supermicro Edge AI infrastructure as well as the Nvidia RTX PRO Blackwell series to provide intelligent retail stores and supply chain solutions.

Super Micro is partnering with Everseen, Kinetic Vision, ALLSIDES, LiveX, Wobot AI, and Aible to create intelligent stores and provide longer term supply chain management.

"By working with Supermicro and NVIDIA at the edge, we’re able to deploy Video AI Agents in a way that's scalable, reliable, and focused on real-time operational insight— not experimentation," said Will Kelso, President, Revenue & Growth at WobotAI.

What Are Other Analysts Saying?

Earlier this month, Mizuho lowered the price target on Super Micro to $31 from $45 while maintaining a ‘Neutral’ rating on the shares after it adjusted targets for semiconductors companies in 2026.

Mizuho said that while it sees continued upside for semiconductor companies in 2026 because of attractive valuations, the analyst believes this will be more modest than 2025.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SMCI shares remained in the ‘extremely bullish’ territory over the past 24 hours amid ‘high’ message volumes.

Retail traders disregarded the ‘Sell’ target from Goldman Sachs. One bullish user said the downgrade was a sign to buy more.

Another user noted that the analyst has a stake in the company. As of Sept. 20, 2025, Goldman Sachs owned about 7.11 million shares in Super Micro, as per data from Yahoo Finance.

Shares of SMCI fell over 8% in the past year. 

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