Wedbush analysts on Thursday weighed in on Super Micro Computer Inc (NASDAQ:SMCI)’s announcement that it is reducing its first quarter revenue guidance, viewing the net revenue implications of the company’s new orders as being more positive than negative.
Super Micro said the sales shortfall was due to design win upgrades that shifted some expected revenue from the first quarter to the second quarter of fiscal year 2026.
The company received recent design wins exceeding $12 billion, with customers requesting delivery in Q2.
“SMCI's backlog growth fits with our view that neocloud, sovereign, and model builder server requirements will ratchet up in the coming quarters in support of AI builds, benefiting server vendors,” the analysts wrote in a note to clients on Thursday.
They noted that much of the increase seen for standard server demand, including components, over the past few months has been driven almost solely by the four large US Cloud Solution Providers.
The Wedbush equity research team believes Super Micro’s announcement is positive for Nvidia and other companies that make up the server supply chain, given further upside demand for already tight memory and storage components.
The analysts reiterated their ‘Neutral’ rating and $48 per share target price on Super Micro stock.