Super Micro Computer (NASDAQ:SMCI) released a preliminary update on its Q2 2025 performance, and the market reacted positively. The company’s revenues for the quarter are projected at $5.6 billion to $5.7 billion, representing a 54% year-on-year growth.
CEO Charles Liang expressed confidence in meeting the February 25th deadline to submit audited financials, avoiding potential delisting from the Nasdaq stock exchange. This move has boosted shares by over 20%.
However, not everyone is convinced of the bullish sentiment. Investor Oliver Rodzianko rates SMCI a Hold (Neutral) and warns that supply chain delays, tough competition, and stiff price increases could undermine the company’s growth prospects.
Rodzianko notes that the Q2 guidance was revised downward, with lower expectations for FY 2025 compared to previous estimates. The investor is also concerned about the $40 billion revenue projection for FY 2026, citing potential risks from Dell and Hewlett Packard Enterprise’s competition in the AI market.
The Nasdaq delisting risk remains a concern, according to Rodzianko. If SMCI fails to meet its deadlines, it could result in substantial stock price losses.
Wall Street analysts remain cautiously optimistic about SMCI, with a consensus Moderate Buy rating based on 3 Buy recommendations and 2 Hold ratings. However, the recent uptick may have overshot some of these bullish assessments.
Before making any investment decisions, it’s essential to do your own analysis and consider multiple perspectives.
Source: https://www.tipranks.com/news/the-deep-value-window-is-gone-says-investor-about-super-micro-computer-stock