Super Micro Computer (NASDAQ: SMCI) is facing heightened uncertainty as the deadline to file its long-overdue quarterly and annual financial reports looms on Tuesday, February 25. Failure to comply could result in the AI server company’s delisting from the Nasdaq, sending shockwaves through investor sentiment.
Super Micro Stock Plunges Ahead of Deadline
SMCI shares have dropped nearly 10% in intraday trading as investors brace for the outcome of its financial filings. Adding to the downward pressure is a cautious research note from Goldman Sachs. Analyst Michael Ng raised his price target on Super Micro stock to $36, yet his estimate still suggests a potential 20% downside from current levels.
Why Is Goldman Sachs Bearish on SMCI?
The negative outlook follows Super Micro’s recently released preliminary second-quarter results, which fell short of analysts’ expectations. The company reported earnings guidance of $0.54 per share on $5.5 billion in revenue, significantly below the consensus estimates of $0.65 per share and $5.9 billion in revenue.
Additionally, SMCI does not offer a dividend, making it less attractive for investors seeking stability amid its financial turbulence.
Regulatory and Competitive Challenges Intensify
Even if Super Micro successfully meets the Nasdaq deadline, the company remains under investigation by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). These ongoing probes create a significant overhang on the stock.
Moreover, industry reports indicate that Super Micro has lost market share to competitors like Dell Technologies (NYSE: DELL) and HP Enterprise (NYSE: HPE) amid financial misconduct allegations and concerns over export control violations raised by Hindenburg Research in August.
Stock Performance and Future Outlook
Super Micro stock has plummeted nearly 60% from its 52-week high, reflecting investor uncertainty. However, CEO Charles Liang recently projected $40 billion in revenue for fiscal 2026—significantly above analysts’ forecasts of $29 billion. This optimistic outlook has led to a mean price target of $52.68 for SMCI stock, suggesting a potential 13% upside from current levels.
As Super Micro navigates its regulatory and financial hurdles, market participants should closely monitor upcoming developments that could impact its Nasdaq listing and long-term growth prospects.
