Wedbushanalyst Matt Bryson maintainedSuper Micro Computer Inc(NASDAQ:SMCI) with a Neutral rating and raised the price target from $530 to $800.
Bryson noted that Supermicro guided revenues for the year meaningfully higher, suggesting sales momentum is only accelerating into the fiscal fourth quarter. At the same time, the midpoint of management's guidance implicitly suggests gross margin deterioration of ~200 bps and an operating margin decline of ~100 bps.
The expected dip in margins, in turn, necessarily caters to concerns about how competition might weigh on SMCI's ability to translate AI-related server growth into profit, both in the current...
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