Barclays has sharply reduced its price target for Super Micro Computer, Inc. (NASDAQ: SMCI), cutting it from $59 to $34 while maintaining an “Equal Weight” rating. This adjustment follows Super Micro’s disappointing March quarter, where both revenue and earnings fell short of expectations and margins narrowed further.
Barclays analyst George Wang cited several concerns driving the lower target, including “too much uncertainty on AI server builds with lack of visibility into calendar year 2025 as customers go through product transitions.” The analyst also pointed to a downgrade in industry forecasts for AI server shipments and noted that NVIDIA’s prioritization of certain rack shipments could negatively affect Super Micro’s volumes. Additionally, the company’s reliance on a small number of major customers and heightened competition from Asian original design manufacturers (ODMs) were highlighted as key risks.
Super Micro’s recent guidance cut and the resulting volatility in its share price have reinforced Barclays’ cautious stance. The bank now sees limited upside in the near term, given the challenging market environment and ongoing uncertainty around demand for AI infrastructure.
Despite these headwinds, Super Micro remains financially healthy, with moderate debt levels and a strong liquidity position. However, Barclays’ revised $34 price target reflects a more conservative outlook on growth and profitability as the company navigates a period of slower customer decision-making and increased industry competition.
Currently, the consensus among Wall Street analysts is a “Hold” rating for SMCI, with an average one-year price target of around $48.62, indicating a cautious but not bearish outlook for the stock.