Rosenblatt Reiterates Buy Rating on Super Micro Computer

Rosenblatt analyst Kevin Cassidy reiterated a Buy rating and $50.00 price target on Super Micro Computer (NASDAQ: SMCI).

“Supermicro increased revenue 153% Q/Q to $12.7B. This was due to ramping production of one of the most complicated systems ever produced, GB300.

Revenue and production rate is expected to be maintained in 3QF26. Next up for the company is to expand the adoption of its “One-Stop Shop” DCBBS offering.

DCBBS helps customers deploy AI factories faster and with engineering assurance. For this, Supermicro has an opportunity for expanding gross margin as the customer base expands.

Considering OpEx is now ~2% of revenue, gross margin expansion falls almost directly to the bottom line.

We’ve tempered our expectations for GM expansion, though continue to see many opportunities to return to double-digit GM.”

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