Super Micro Posts Strong Q1, Impressive Margins, BofA Says

MT Newswires Live01:31

Super Micro Computer (SMCI) delivered a strong fiscal Q1 quarter and raised its revenue and gross margin guidance, BofA Securities said in a note Wednesday.

The company outlined during its earnings call that demand for AI-related products remains strong, leading it to raise its fiscal 2027 revenue guidance to $72 billion to $82 billion.

The company also expects "healthy" gross margins of 11.8% to 12.2%, the note added.

"We remain cautious on sustainability of margins," the report said, pointing to negative free cash flow on high working capital.

The note said margin pressures remain a concern amid pressure from competition, component cost increases and investments in additional engineering support and services.

BofA raised its price objective to $39 from $38 and reiterated its underperform rating.

Price: 29.85, Change: -1.54, Percent Change: -4.91

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