Super Micro Computer’s stock price took a hit after releasing underwhelming Q4 Fiscal 2025 results, with shares tumbling 22% in the days following. Despite net sales of $5.76 billion exceeding year-over-year and sequential growth expectations, the company missed estimates by $156.37 million.
EPS came in at $0.31 GAAP, missing by $0.03, while Q1 FY 2026 non-GAAP EPS guidance fell short of analysts’ predictions. Management attributed the shortfall to capital constraints and onboarding a “major new customer” with unique feature requirements.
However, not everyone is selling out on Super Micro. Top investor Stone Fox Capital believes the sell-off is excessive and has opened the door to a buying opportunity. They point to the company’s recent $2.3 billion debt raise as a solution to capital issues and note that FY 2026 revenue guidance of $33 billion still offers meaningful upside.
Stone Fox highlights Super Micro’s data center building block solutions, which should help avoid margin erosion in “price war on rack servers” while capturing AI-driven demand from customers scaling their online capabilities. With consensus EPS estimates now trimmed to $2.75 for FY 2026, they believe the bar for an earnings beat is set low, making a rebound in investor confidence easier to achieve.
While Stone Fox assigns Super Micro a Strong Buy rating, Wall Street remains skeptical with a Hold (Neutral) rating and an average price target of $47.58, suggesting modest upside of 7% from current levels.
Source: https://www.tipranks.com/news/load-up-on-the-dip-says-top-investor-about-super-micro-computer-stock